Synopsis
The TRAI has recommended reducing the DTH authorisation fee from 8% to 3% of AGR, with plans to abolish it entirely by FY27. This move aims to relieve financial pressure on DTH operators and promote business growth under the new Telecommunications Act, 2023.Key Takeaways
- TRAI recommends DTH authorisation fee cut to 3%
- Complete abolition of the fee by FY27
- Reduction of bank guarantees and processing fees
- New framework under Telecommunications Act, 2023
- Minimum net worth requirement for IPTV removed
New Delhi, Feb 21 (NationPress) In an effort to alleviate the financial strain on direct-to-home (DTH) service providers, the Telecom Regulatory Authority of India (TRAI) on Friday issued recommendations regarding the ‘Framework for Service Authorisations for the provision of Broadcasting Services under the Telecommunications Act, 2023’. The telecom regulator suggested decreasing the authorisation fee for DTH services from the current 8% to 3% of the adjusted gross revenue (AGR).
Furthermore, TRAI has proposed the complete elimination of the authorisation fee for DTH operators by the conclusion of fiscal year 2026-27.
To foster growth and improve the ease of doing business in this sector, TRAI has also recommended a reduction in bank guarantees and processing fees associated with DTH and HITS services.
This recommendation is part of TRAI's wider initiative to refine the regulatory framework for broadcasting services under the recently enacted Telecommunications Act, 2023.
The government has enacted the Telecommunications Act, 2023, which repeals the Indian Telegraph Act of 1885. However, the effective date for various provisions of the Telecommunications Act, 2023 is still pending notification.
According to the Ministry of Communications, “Section 3(1)(a) of the Telecommunications Act, 2023 mandates authorisation for those wishing to offer telecommunication services, adhering to the stipulated terms and conditions, including fees or charges, as may be laid down.”
On October 30, 2024, the Authority initiated a consultation process by publishing a consultation paper and invited feedback from stakeholders.
Following the collection of responses, TRAI has organized and simplified the terms and conditions into a more accessible authorisation framework.
As a result, TRAI has finalized its recommendations on the ‘Framework for Service Authorisations for the provision of Broadcasting Services under the Telecommunications Act, 2023’.
This recommended authorisation framework delineates two specific sets of terms and conditions: the first for the applicant seeking authorisation for broadcasting services, and the second for compliance by the authorized entity during the service provision period.
The minimum net worth requirement of Rs 100 crore for Internet Service Providers to deliver IPTV services is suggested to be abolished and aligned with the provisions set forth in the authorisation for Internet Services to be issued by the DoT.
