Unified Telecom, TV Licence Likely In India

Business Standard: When the convergence of media technologies is going to become a reality, it also makes sense to converge the policy regime too. The Telecom Regulatory Authority of India (TRAI) has initiated the “process of convergence of broadcasting and telecommunications sectors in the country by proposing that single operators be allowed to provide all services under a common licence”.

In its consultation paper on issues relating to Convergence and competition in broadcasting and telecommunications, the regulator has said that the way forward is to bring licensing, registration powers, regulatory mechanism for the telecom, IT and the broadcast sectors under a common framework.
According to Trai, with convergence in technology, there was no option except regulation to converge, specifically with respect to spectrum allocation, interconnection and foreign direct investment.
The regulator has therefore proposed that the cable industry be allowed parity with telecom on the FDI limits in view of future convergence of broadband and telephony business. At present, DTH services has a FDI cap of 20 per cent, and the same product when delivered through cables attracts a cap of 49 per cent, while no cap has been specified for IPTV which can be delivered through telecom networks.
However, the FDI cap for telecom companies that offer IPTV is 74 per cent, in line with the ceiling for the telecom sector, while 100 per cent foreign investment is permitted for Internet Service Providers.

It really makes sense to declutter the policy guidelines.

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