Two years after the Telecom Regulatory Authority of India (TRAI) submitted its recommendations, the government today gave its nod to a policy to digitalise cable TV operations throughout the country, including remote areas.
Under the 'Headend in the Sky' or 'HITS' policy, the operator uplinks signals of TV channels of different broadcasters to their satellite, enabling cable operators to downlink these signals for further distribution to subscribers through their cable network in a digital form.
"The Union Cabinet today approved the proposal of my Ministry to issue policy guidelines for HITS operators, that provide for a framework within which the service providers will operate," Information and Broadcasting Minister Ambika Soni told reporters here.
Though the policy is "not mandatory", it would enable existing cable network operators to switch to HITS technology and go digital to transmit TV signals to their subscribers, she said, adding that the capital investment and operational costs would come down drastically through it.
The total direct and indirect foreign investment, including FDI, would be up to 74 per cent, Soni said, adding that prior approval of the FIPB will be required if the FDI crossed 49 per cent. The current FDI limit for Direct To Home (DTH) service is 49 per cent.
TRAI had submitted its recommendations on various policy issues related to the HITS service to the ministry in October 2007.