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Our Corporate Bureau
New Delhi, Mar 26: The Union cabinet has allowed private broadcasters to set up uplinking facilities in the country with up to 20 per cent foreign equity. It also approved amendments to the Cable TV Act, making it mandatory for all foreign television channels to follow a programme and advertising code.
Information and broadcasting minister Pramod Mahajan told reporters after the cabinet meeting that the new uplinking policy will come into effect from from August 1.
The broadcasters were so far allowed to uplink only through Videsh Sanchar Nigam Ltd (VSNL) but can now do so independently on the C-band. The broadcasters would however be barred from selling the facility to any second party.
In addition to the seven broadcasters, who are currently uplinking from the country, prospective broadcasters with similar foreign equity component would also be entertained to apply for uplinking from the country.
The cabinet also cleared the Cable and Networks Amendment Bill, which is likely to be tabled in theParliament after the recess.
The changes indicated by Mahajan include, bringing all satellite channels under the purview of uniform programming and advertisement code of DD by making the cable operators responsible for the content of the channels they are carrying.
The new Act would also make it mandatory for all cable operators to carry Doordarshan I and II on prime frequencies.
Mahajan said the government has received several complaints regarding the arbitrary hiking of subscription fees by pay channels especially the sports channels on the eve of important sporting events.
The matter is being discussed and amended Act would include provisions which will benefit millions of satellite television viewers, Mahajan added.
Sources said there have been proposals from various quarters to bar Indian companies from advertising on premiumly priced channels. They said the arguement in favour of such banning is based on the premise that world-over premium pay channels do not carry advertisements.
It hasbeen further argued that the pay channels by charging subscription fee along with their earnings from advertisement are actually making the viewers pay twice for their services.
It was also felt that the pay channels, by carrying too many advertisements, are also making it difficult for the viewers to enjoy their telecasts and by preventing local advertisements on foreign channels, the government may be able to prevent forex outflow, sources added.
On the subject of direct-to-home television services, the I&B minister said the cabinet is yet to take a decision. A group is already studying all aspects and a final decision would be taken only after the group submits its report, he added.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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