TRAI Proposes Lower Fees, Reforms for DTH and Radio Services

24 Feb 2025 CW Team

As part of its new framework under the Telecommunications Act, 2023, TRAI called for voluntary infrastructure sharing among broadcasters and telecom operators and proposed interoperability of set-top boxes (STBs) to enhance consumer choice. It also recommended scrapping the Rs 1 billion minimum net worth requirement for internet protocol TV (IPTV) service providers.

TRAI suggested that the Centre grant service authorisations under Section 3(1)(a) of the Telecommunications Act, replacing the current licensing system. Existing licence holders in the broadcast and radio sectors can voluntarily migrate to the new regime without entry or processing fees, though their authorisation period will start from the migration date.

The Telecommunication Engineering Centre (TEC) under the Department of Telecommunications (DoT) will set standards for interoperable STBs and TV sets with built-in STB functionality. TRAI also proposed two new services — Ground-based Broadcasting of a Television Channel and Low Power Small Range Radio Service.

For radio broadcasting, TRAI recommended a technology-agnostic approach to support digital adoption. It proposed allowing radio operators to obtain terrestrial service authorisation without the current requirement for spectrum auction. Authorised terrestrial radio services should also be permitted to stream content online simultaneously.

TRAI suggested standardising the radio broadcasting authorisation fee at 4% of AGR across all cities, with a reduced rate of 2% for specified regions for the first three years. The authorisation period will now be renewable every 10 years, a provision not available earlier.

(Business Standard)

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The Telecom Regulatory Authority of India (TRAI) has recommended reducing the authorisation fee for direct-to-home (DTH) service operators from the current 8% to 3% of adjusted gross revenue (AGR), with plans to eliminate the fee entirely after 2026-27. It also suggested lowering the bank guarantee for DTH services to ?5 crore or 20% of the authorisation fee for two quarters, whichever is higher. As part of its new framework under the Telecommunications Act, 2023, TRAI called for voluntary infrastructure sharing among broadcasters and telecom operators and proposed interoperability of set-top boxes (STBs) to enhance consumer choice. It also recommended scrapping the Rs 1 billion minimum net worth requirement for internet protocol TV (IPTV) service providers. TRAI suggested that the Centre grant service authorisations under Section 3(1)(a) of the Telecommunications Act, replacing the current licensing system. Existing licence holders in the broadcast and radio sectors can voluntarily migrate to the new regime without entry or processing fees, though their authorisation period will start from the migration date. The Telecommunication Engineering Centre (TEC) under the Department of Telecommunications (DoT) will set standards for interoperable STBs and TV sets with built-in STB functionality. TRAI also proposed two new services — Ground-based Broadcasting of a Television Channel and Low Power Small Range Radio Service. For radio broadcasting, TRAI recommended a technology-agnostic approach to support digital adoption. It proposed allowing radio operators to obtain terrestrial service authorisation without the current requirement for spectrum auction. Authorised terrestrial radio services should also be permitted to stream content online simultaneously. TRAI suggested standardising the radio broadcasting authorisation fee at 4% of AGR across all cities, with a reduced rate of 2% for specified regions for the first three years. The authorisation period will now be renewable every 10 years, a provision not available earlier. (Business Standard)

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