Mukesh Ambani-owned Reliance Jio Infocomm has reportedly suggested that the licence fee levy on direct-to-home (DTH) operators not be abolished. According to a report in Economic Times, the company has said that doing so would cause a loss to the national exchequer and give DTH an unfair advantage over cable TV. Reliance Industries (RIL), the country’s most valued company, owns significant stakes in India’s top three cable TV companies: Hathway Cable and Datacom, DEN Networks, and GTPL Hathway.
The telecom major said this in its submission to the Telecom Regulatory Authority of India‘s (Trai‘s) pre-consultation paper for the formulation of a National Broadcasting Policy (NBP).
In August 2023, Trai recommended to the Ministry of Information and Broadcasting (MIB) that the government abolish the licence fee for DTH operators after the end of FY27 to ensure the long-term sustainability of the sector.
In its recommendations, Trai argued that DTH platforms be treated similar to other regulated and unregulated distribution platforms, such as cable TV, headend in the sky (HITS), Internet protocol television (IPTV), and over-the-top (OTT) services.
Why Reliance Jio wants Trai to not abolish fee
Jio added that the usage of spectrum gives DTH a competitive edge over cable TV. This, the company said, eliminates the need for investment in ground-based networks, allowing for nationwide coverage without additional infrastructure investments.
Jio added in its submission that unlike DTH, cable TV has to invest in the maintenance and upkeep of infrastructure. It stated that DTH players have surpassed cable TV providers in subscriber count due to the availability of spectrum for providing services on a pan-India basis. Reliance Jio pointed out that DTH had 65.25 million subscribers, compared with cable TV’s 64 million.
“Moreover, it is a fundamental principle that services like satellite broadcasting, which leverage spectrum-a public resource-should reimburse the national exchequer based on market-driven prices,” it added.
It also stated that policymakers should allow the deployment of spectrum bands used for broadcasting services for communication services.
The telecom major said this in its submission to the Telecom Regulatory Authority of India‘s (Trai‘s) pre-consultation paper for the formulation of a National Broadcasting Policy (NBP).
In August 2023, Trai recommended to the Ministry of Information and Broadcasting (MIB) that the government abolish the licence fee for DTH operators after the end of FY27 to ensure the long-term sustainability of the sector.
In its recommendations, Trai argued that DTH platforms be treated similar to other regulated and unregulated distribution platforms, such as cable TV, headend in the sky (HITS), Internet protocol television (IPTV), and over-the-top (OTT) services.
Why Reliance Jio wants Trai to not abolish fee
Jio added that the usage of spectrum gives DTH a competitive edge over cable TV. This, the company said, eliminates the need for investment in ground-based networks, allowing for nationwide coverage without additional infrastructure investments.
Jio added in its submission that unlike DTH, cable TV has to invest in the maintenance and upkeep of infrastructure. It stated that DTH players have surpassed cable TV providers in subscriber count due to the availability of spectrum for providing services on a pan-India basis. Reliance Jio pointed out that DTH had 65.25 million subscribers, compared with cable TV’s 64 million.
“Moreover, it is a fundamental principle that services like satellite broadcasting, which leverage spectrum-a public resource-should reimburse the national exchequer based on market-driven prices,” it added.
It also stated that policymakers should allow the deployment of spectrum bands used for broadcasting services for communication services.
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