DTH operators provide over Rs 11,000 crore against MIB licence-fee demands

DTH operators have made provisions of more than Rs 11,000 crore against disputed licence-fee liabilities as of March 31, 2026, in response to demands raised by the Ministry of Information & Broadcasting (MIB), according to regulatory filings.

The industry is meanwhile awaiting a government decision on reducing the DTH licence fee from the current 8% of adjusted gross revenue (AGR), even as the disputed dues remain locked in litigation.

Tata Play has provided Rs 2,331 crore against an MIB demand of Rs 4,548 crore and recognised a further Rs 3,232 crore as a contingent liability. Bharti Telemedia, which operates under the Airtel Digital TV brand, has provided around Rs 4,487 crore, though it has not disclosed the MIB's demand.


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Dish TV's provision stood at about Rs 4,866 crore against a demand of Rs 7,203 crore up to FY25. Sun Direct faced a demand of Rs 2,107 crore towards additional licence fees for FY 2007-08 to FY2023-24.

The demands stem from a dispute over the basis for calculating DTH licence fees, currently levied at 8% of AGR. The Cabinet approved new DTH guidelines in 2020, reducing the fee from 10% of gross revenue (GR) to 8% of AGR. The MIB subsequently issued provisional 20-year licences to DTH operators in April 2021.

In 2023, the Telecom Regulatory Authority of India (TRAI) recommended cutting the DTH licence fee to 3% of AGR and eventually phasing it out by the end of FY2026-27. The MIB is reviewing the licence-fee structure amid opposition from the All India Digital Cable Federation and Reliance Jio.

The dispute comes as DTH operators face a sharp contraction in their core market. The industry lost nearly 18 million subscribers between March 2022 and March 2026 as premium customers migrated to OTT platforms, price-sensitive rural viewers shifted to DD Free Dish and connected TVs gained traction.

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Dish TV CEO Manoj Dobhal has said these headwinds have affected DTH operators in India and globally and could persist in the coming years.

The financial pressure is also reflected in the industry's performance. Combined revenue of the four major DTH companies fell to more than Rs 8,200 crore in FY26 from nearly Rs 10,000 crore in FY25, according to their financial data.

Operators are responding by expanding beyond traditional DTH into IPTV, broadband and OTT aggregation. Dish TV has also entered the smart TV segment, bundling televisions with OTT subscriptions as consumption shifts increasingly towards connected TVs.

The licence-fee dispute remains sub judice before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), various high courts and the Supreme Court. DTH operators have challenged the quantum and applicability of the fee, as well as the levy of interest.

The MIB has sought dues based on 10% of GR, while operators have argued that the fee should be calculated on AGR and apply only to their DTH business. Some high courts, including the Jammu & Kashmir High Court, have stayed the MIB's demands.

The dues are also subject to reconciliation based on the outcome of the Comptroller and Auditor General (CAG) audit and court proceedings before the TDSAT, the High Court of Jammu & Kashmir and Ladakh, and the Supreme Court.

In its latest rating rationale, Crisil said Bharti Telemedia does not anticipate any payout against the disputed liability, with parent Bharti Airtel expected to support the company in case of an exigency.

For Sun Direct, Crisil has also not factored in any payout. It said the company's healthy cash flows and financial flexibility, backed by its strong promoters, should keep its credit profile sustainable even if the full liability has to be paid.