TRAI recommends 74% FDI in cable TV operations

TRAI recommends 74% FDI in cable TV operations

The Telephone Regulatory Authority of India (TRAI) had setup a committee to discuss Broadband and Telephony over Cable TV Network and they have finally given their recommendations for the process. TRAI has suggested allowing 74 per cent foreign direct investment in cable TV operations. This would help in bringing this frontier closer to how the cellular and fixed line telephone operations are governed.

This proposal is part of the bigger paper that seeks to revive the buried convergent law for telecom and broadcasting sectors. TRAI has also recommended that the existing spectrum allocation method should be revamped to make it friendlier to companies providing service in the sector.

TRAI committee said on the matter of FDI investment in this business segment: “The FDI limit for ISPs is already at 100 per cent and for telcos it has been hiked to 74 per cent. In view of convergence and future broadband and telephony business, it is suggested that the cable industry should also be allowed parity with telecom. It may be noted that cable TV network is only a carriage for delivering voice, data, and TV just like copper or fiber being used by telcos for providing these services.”

In addition, they also said that the broadcasting is a heavily regulated sector all over the world and they have also invited suggestions from the players involved in this market.