Trai for auction of mobile TV spectrum, 74% FDI

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New Delhi, Jan 3 : The Telecom Regulatory Authority of India (Trai) on Thursday recommended auction of mobile television spectrum. In its draft recommendations to the information and broadcasting ministry, which had sought Trai’s recommendations on various issues relating to the licensing policy for mobile TV service, the regulator said licence holders could use terrestrial as well as satellite-based routes for the transmission of the content. Trai also proposed allowing up to 74% foreign direct investment (FDI) in mobile TV services.

Recommending allocation of carriers in the UHF Band V (585 MHz—806 MHz) for terrestrial mode of mobile TV transmission, and S-Band for satellite mode of mobile TV transmission, the regulator said, “The licencee should ensure the technology used is such that its subscribers are generally able to migrate to any other licencee using the same standards without changing the handsets if the handset has been provided by the licencee”.

There are two routes for providing mobile TV services—using the telecom network with spectrum already allotted or using broadcasting method. Trai is of the view that operators having cellular mobile telephone service licence or unified access service licence will not need any further licence for offering mobile TV services on their own network. The regulator suggested creating a new class of mobile TV operators using broadcast method.

The licence fee will be charged at 6% of gross revenue for each year or at 10% of the reserve one-time entry fee limit for the concerned licence area, whichever is higher. “Minimum net worth requirements of Rs 40 crore for satellite-based mobile television licences and Rs 3 crore for each service area in terrestrial mobile television licences should be laid down for being eligible to participate in the licencing process. The tenure of both terrestrial and satellite licences should be for 10 years,” Trai said.

On sharing of terrestrial transmission infrastructure of Doordarshan, Trai said it should be permitted on mutual agreement basis in a non-discriminatory manner. According to Trai, wherever a mobile TV service provider has installed its own infrastructure, it must be shared with other such service providers.