Trai suggests auction of mobile TV spectrum

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New Delhi, Jan 23 : The Telecom Regulatory Authority of India (Trai) on Thursday recommended that mobile television spectrum should be auctioned and that the foreign direct investment (FDI) for mobile TV service providers should be capped at 74%.

In its final recommendations to the information and broadcasting ministry, Trai said licence holders could use terrestrial as well as satellite-based routes for the transmission of the content.

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 license will not need any further license for offering mobile TV services on their own network. The regulator suggested creating a new class of mobile TV operators using the broadcast method.

"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 licenses 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.

The licence fee will be charged at 4% of adjusted gross revenue (AGR) for each year or at 10% of the reserve one-time entry fee limit for the concerned licence area, whichever is higher. Trai also suggested that no mobile TV licencee should allow any broadcasting company to hold more than 20% of the total paid up equity in it at any time during the licence period.

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.

Trai said that apart from Doordarshan, private operators should be assigned at least one slot of 8 MHz each for mobile TV operation using terrestrial systems.