Space Television became the first company to apply to the government for a licence to operate a Ku band direct-to-home (DTH) television venture. According to sources, Star India has shown interest in picking up a stake in Space Television.
According to sources, Space Television said 10 per cent annual revenue sharing with the government would make the DTH venture commercially unviable. The company has also asked for lowering of duties on the import of set-top boxes needed to access a DTH service.
According to the law, the total foreign investment — including foreign direct investment, and investment by Non-Resident Indians, overseas corporate bodies and foreign institutional investors — should not exceed 49 per cent.
In November 2000, the Cabinet had given a formal nod to the reception of Ku band television signals direct to Indian homes.
Source: Business Standard