Trai favours FDI cap of 74% for mobile TV
Telecom regulator Trai on Thursday proposed that the government allow players to offer mobile TV services using any technology of their choice, and licences for this service be issued ‘through a closed tender system on the basis of a one-time entr...
By TNN |
NEW DELHI: Telecom regulator Trai on Thursday proposed that the government allow players to offer mobile TV services using any technology of their choice, and licences for this service be issued ‘through a closed tender system on the basis of a one-time entry fee (OTEF) quoted by the bidders’. The regulator also recommended that the FDI in this sector be kept at 74% in line with the telecom sector. It also said that allocation of spectrum to mobile television licencees should be automatic for successful bidders and it should not require any further selection process.
Importantly, Trai has also proposed that sharing of terrestrial transmission infrastructure of state-owned Doordarshan should be permitted on mutual agreement basis in a non-discriminatory manner. “Wherever a mobile television service provider has installed its own infrastructure, it must be shared with other such service providers,” Trai added in its draft regulations for mobile TV released on Thursday. The draft regulations say that players who offer this service must share 6% of their annual revenues towards licence fee or pay 10% of the reserve one time entry tee limit for the concerned license area, depending on whichever figure is higher. “Minimum net worth requirements of Rs 40 crores for satellite based mobile television licences and Rs 3 Crores for each service area in terrestrial mobile television licenses should be laid down for being eligible to participate in the licensing process,” it added.
At present, in the broad sense, there are two routes for providing mobile television services — one using the telecom network with spectrum already allotted, and the other using broadcasting method.
Trai said that it shared the view that existing telcos did not require any further license or permission for offering mobile television services on their own networks using spectrum already allotted to them. The draft recommendations therefore calls for creating a new class of mobile television operators using broadcast method.
“Allocation of carriers in the UHF Band V (from 585 MHz – 806 MHz) for terrestrial mode of mobile television transmission, and S-Band for satellite mode of mobile television transmission has been recommended. Apart from Doordarshan, private operators may be assigned at least 1 slot of 8 MHz each for mobile TV operation using terrestrial systems. For satellite based systems also, apart from Doordarshan, private operators may be allocated spectrum such that a bandwidth of at least 8 MHz is available to them for mobile television services,” the draft recommendations said.
Importantly, Trai has also proposed that sharing of terrestrial transmission infrastructure of state-owned Doordarshan should be permitted on mutual agreement basis in a non-discriminatory manner. “Wherever a mobile television service provider has installed its own infrastructure, it must be shared with other such service providers,” Trai added in its draft regulations for mobile TV released on Thursday. The draft regulations say that players who offer this service must share 6% of their annual revenues towards licence fee or pay 10% of the reserve one time entry tee limit for the concerned license area, depending on whichever figure is higher. “Minimum net worth requirements of Rs 40 crores for satellite based mobile television licences and Rs 3 Crores for each service area in terrestrial mobile television licenses should be laid down for being eligible to participate in the licensing process,” it added.
At present, in the broad sense, there are two routes for providing mobile television services — one using the telecom network with spectrum already allotted, and the other using broadcasting method.
Trai said that it shared the view that existing telcos did not require any further license or permission for offering mobile television services on their own networks using spectrum already allotted to them. The draft recommendations therefore calls for creating a new class of mobile television operators using broadcast method.
“Allocation of carriers in the UHF Band V (from 585 MHz – 806 MHz) for terrestrial mode of mobile television transmission, and S-Band for satellite mode of mobile television transmission has been recommended. Apart from Doordarshan, private operators may be assigned at least 1 slot of 8 MHz each for mobile TV operation using terrestrial systems. For satellite based systems also, apart from Doordarshan, private operators may be allocated spectrum such that a bandwidth of at least 8 MHz is available to them for mobile television services,” the draft recommendations said.
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At the same time, if telcos want to use the broadcasting technology to provide this service, rather than use their cellular networks, they must take a mobile TV license and also participate in the bidding process, Trai added. Trai has also spelt out stringent roll-out obligations for service providers who offer this service. Giving further details on the licensing issues, Trai said: A state should be the license area for a mobile television terrestrial service license. Some of the smaller states can be combined to form an appropriate licence area in order to enable financially and operationally-viable model. Start a SIP with as low as ₹500 with ET Money App!
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