The Confederation of Indian Industry study shows the belief that the world over content providers are not in distribution, is mistaken as media conglomerates like News Corp, Time Warner, and Viacom were active across the whole spectrum, from content development to customer interface.
The study also highlighted that in Australia, while foreign equity was restricted to 35 per cent, no individual could own more than 20 per cent. In the US, the FCC has imposed no restriction on foreign ownership to DBS licensees.
In the UK, non-EEC nationals were not allowed to control a license for providing domestic satellite services. In Canada, DTH satellite undertakings that met certain criteria were exempted from license requirement and foreign ownership was limited to 20 per cent except through a qualified corporation, in which case it was 33.33 per cent. Hong Kong allows 49 per cent foreign equity for DTH licensees.
The industry chamber therefore expresses its view that Indian broadcasting companies need to be better prepared to meet the challenges coming its way once entry barriers are lifted globally in the next 5-10 years time.
The industry chamber also says the imposition of 20 per cent equity restriction on broadcasting companies and/or cable network companies for owning a DTH company does not promote convergence.