TRAI, yet again, recommends issuing DTH licences for 20 years

The authority also recommended to the MIB that a one-time entry fee of Rs 10 crore should be charged in the new DTH licensing regime

e4m by Nishant Saxena
Updated: Apr 17, 2018 8:53 AM

The Telecom Regulatory Authority of India (TRAI) reiterated its recommendations to the Ministry of Information and Broadcasting (MIB) that under the new licensing regime for DTH (direct-to-home), licenses should be issued for a period of 20 years and be renewed by 10 years at a time.
The Authority also recommended that a one-time entry fee of Rs 10 crore should be charged in the new DTH licensing regime.

“The Authority also recommends that the renewal shall be on the terms and condition, including renewal fee, specifies by the Licensor, in consultation with the Authority,” said TRAI in its recommendation.

While addressing the issues related to the new DTH licensing regime, TRAI had made several recommendations to the MIB in July, 2014.

However, based on recommendations from Inter-Ministerial-Committee and consulting other ministries/deparments, MIB proposed “to grant DTH license for an initial period of 10 years. Thereafter, renewal of the license to be for 10 years.”

“A longer duration of license helps in better futuristic business planning. The Authority further noted that in the telecom sector, the license period under the Unified License (UL) regime is 20 years and renewal is 10 years at a time,” TRAI told the ministry adding that a longer licence period would provide certainty in the market.

MIB had also proposed the Entry fee to be increased to Rs 25 crore for the license period of 10 years.

In response to the proposal, TRAI said, “The basic purpose of levying an entry fee is to deter non-serious players. In fact, quantum of the fee should be such that it ensures a level-playing field between the providers of similar or substitutable services and also discourages non-serious players.”

TRAI also explained the goal of the government to the Ministry of Information and Broadcasting and said, “The goal of the Government is not just to maximize the revenue but also to provide efficient services to the public.”

Further, the Authority recommended, “The license fee in the new DTH licensing regime should be charged as 8 per cent of Adjusted Gross Revenue (AGR) where AGR is calculated by excluding Service Tax, Entertainment Tax and Sales Tax/VAT actually paid to the Government, from the Gross Revenue (GR).”

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