Trai to present views on FI limit in broadcasting by month-end

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Telecom Regulatory Authority of India (Trai) on Friday said it would submit its recommendations on foreign investment limits in various segments of broadcasting sector to the government by this month-end.

“We are considering various issues at the moment and will submit our recommendations on foreign investment limits in various broadcasting sector to the (information and broadcasting) ministry by the end of this month,” Trai member Prabhakar said.

Prabhakar was here to take part in an open house discussion with stakeholders on the issue. Before seeking recommendations from Trai, the I&B ministry had proposed certain foreign investment limits in different sectors backed with reasons.

The ministry has proposed raising limits to 74 % in teleport and DTH from 49% now, 74% in satellite radio and HITS, 24% in FM radio from 20 now and retaining the existing limits in cable network and TV channels (news and current affairs channel) at 26%

Trai had earlier recommended that 100% foreign investment should be allowed in the satellite radio sector, but the government believes that “the satellite radio broadcasting network should also be kept at the level of 74% for the time being to enable entry of Indian companies in a relatively new sector”.

The I&B ministry had also stated that it would not be proper to raise the FI limit in cable network to 74 % from 49% now, as this would shift the control to the foreign partners.

“It is also seen that as of now, it (cable network) has not been attracting even 49% of the foreign investment limit prescribed so far,” the I&B ministry had stated.

Regarding FM radio, the government “may have no objection to increasing the level from the present 20% to 24% as no additional rights will accrue to the foreign shareholders as per the company law”.

Prabhakar said various issues would have to be taken into consideration before submitting them to the government.

“We will take into account the view of the stakeholders and consider the interest of the consumers and on top of all, keep the national interest in our mind while preparing the recommendations,” Prabhakar added.