DTH players have applied to the government to waive the 8 percent license fee imposed on them in line with similar proposals for broadband services so that they remain competitive in the market, the industry body DTH Association said.
The DTH company approached the Ministry of Information and Broadcasting following a proposal under consideration by DOT to waive the license fee for broadband services.
In a May 11 letter to the Ministry of Information and Broadcasting, the industry body said direct-to-home (DTH) volumes had been declining for some time and now invested billions of rupees. Millions of direct and indirect employees of this sector are at risk.
The letter was also addressed to the Department of Telecommunications.
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The industry body says broadband is expanding rapidly and is also being used to deliver content.
The DTH Association welcomes the proposal to remove the license fee to help consumers, but requests that “the same policy may apply to DTH, and therefore would like to waive the license fee in accordance with the DoT’s proposed decision”.
The Telecom Regulatory Authority of India (TRAI) has recommended to the DoT to waive the license fee on broadband services for 5 years.
“Now the license fee for broadband has been waived, so IPTV, OTT will become a more powerful force and DTHE will be the only distribution platform that pays 8 per cent license fee when distributing only, like HITS, Fridish and IPTV. This makes it the most unrivaled of all content distribution platforms, “said the association.
Input from PTI