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Prasar Bharati having second thoughts about investing in DTH

03-August-2001
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Prasar Bharati having second thoughts about investing in DTH

After several months into a feasibility study, it seems that Prasar Bharati is unlikely to invest in the Direct-to-Home (DTH) broadcasting operations in the short run. Videsh Sanchar Nigam Ltd (VSNL) and Prasar Bharati had jointly taken up a study to work out whether investing in DTH was feasible or not.

Although the feasibility study is still on, Prasar Bharati has more or less decided that DTH is not a feasible proposition for it at the moment. This is despite the Prasar Bharati board giving its clearance to the public broadcaster for investing in DTH last year.

One of the hurdles in the way of broadcasters moving towards DTH is the sectoral cap of 20 per cent. Most broadcasters find it unfeasible to make investments in DTH, with a 20 per cent cap. As for Prasar Bharati, it was looking at a DTH venture with VSNL as its lead partner.

DTH broadcasting was cleared by the Cabinet in November last year. But months after the government approval, not a single company has applied for permission to start DTH operations.

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