DTH guidelines

Guidelines for obtaining license for providing Direct-to-Home (DTH) broadcasting services in India:

DTH Broadcasting Service refers to distribution of multi-channel TV programmes in Ku Band by using a satellite system by providing TV signals direct to subscribers’ premises without passing through an intermediary such as cable operator.

Eligibility Criteria: 

 Applicant Company to be an Indian Company registered under Indian Company’s Act, 1956.

 Total foreign equity holding including FDI/NRI/OCB/FII in the applicant company can not to exceed 49%.

 Within the foreign equity, the FDI component can not to exceed 20%.

 The applicant company must have Indian Management Control with majority representatives on the board. The Chief Executive of the company should be a resident Indian.

 Broadcasting companies and/or cable network companies shall not be eligible to collectively own more than 20% of the total equity of Applicant Company at any time during the license period. Similarly, the Applicant Company not to have more than 20% equity shares in a broadcasting and/or cable network company.

Number of Licensees:

There is no restrictions on the total number of DTH licenses and any person who fulfils the necessary terms and conditions and subject to the security and technical clearances by the appropriate authorities of the Govt. can be issued a DTH license.

Period of license:

License validity is for a period of 10 years from the date of issue of wireless operational license. The license can be cancelled/suspended by the Licensor at any time in the interest of Union of India.

Basic conditions/obligations:

 After clearances are obtained, the applicant needs to pay an initial non-refundable entry-fee of Rs.10 crores to the MIB. After such payment of entry-fee, the applicant would be informed of intent of Min. of I & B to issue license and requested to approach Wireless planning and Coordination (WPC) Wing for Standing Advisory Committee on (Radio) Frequency Allocation (SACFA) clearance. WPC and SACFA– both are wings of the Dept. of Telecommunications.

 Within one month of the SACFA clearance, the Licensee will have to submit a Bank guarantee (Form-C) from any Scheduled Bank to the MIB for an amount of Rs.40 crores valid for the duration of the license.

 The Licensee has to pay an annual fee equivalent to 10% of its gross revenue as reflected in the audited accounts of the Company for that particular financial year, within one month of the end of that financial year.

 The Licensee also has to pay the license fee and royalty for the spectrum used as prescribed by WPC Authority.

Arbitration Clause:

Incase of any dispute, the Secretary, Department of Legal Affairs, Government of India or his nominee will act as sole Arbitrator, for adjudication. The award of the Arbitrator is binding on the parties.