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Broadcasting industry seeks waiver of 20 per cent cap

19-December-2000
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Broadcasting industry seeks waiver of 20 per cent cap

The broadcasting industry is seeking a waiver of the clause on annual revenue sharing in the government’s rules for DTH players and the 20 per cent cap on a broadcasting company's equity in a KU-band direct-to-home television venture.

The Indian Broadcasting Foundation (IBF), an apex body of TV companies and airtime sellers, its members are unanimous on two things: annual revenue sharing with the government at the rate of 10 per cent is not justified and the 20 per cent equity cap on broadcasting/cable companies will hamper DTH’s growth. The IBF is slated to petition the government on these issues soon and express its apprehensions.

The IBF would demand waiver of the 10 per cent annual revenue sharing clause for 5-10 years, by when it expects the cost-intensive DTH ventures to become financially viable. This decision was okayed at IBF’s AGM in Hyderabad.

The broadcasting companies feel that if the 20 per cent sectoral cap is persisted with, the DTH business will go into the hands of non-broadcasting companies, who may not invest the required amount of funds in a DTH venture.

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