"The authority recommends that the foreign investment limit for news and current affairs channels in the uplinking guidelines may be increased from 26 per cent to 49 per cent," the regulator said in its recommendations on foreign investment limit for the broadcasting sector.
Trai has, however, maintained status quo in case of uplinking of non-news TV channels and downlinking of TV channels at 100 per cent foreign investment limit.
The regulator said any change in the foreign investment limit for TV broadcasters would necessitate revisiting the recommendation of the authority on such cap for FM radio for the sake of consistency.
The current limit of foreign investment is 20 per cent in FM radio services.
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The comments of stakeholders indicate that while most of the news broadcasters want the existing cap of 26 per cent on foreign equity holding, including FDI, FII and NRI investments, for news and current affairs TV channels be raised to 49 per cent, a few news broadcasters want the existing limit to be retained, Trai said.
According to the regulator, those that wanted the existing limit of 26 per cent to continue, said this is a sensitive sector involving national security and image, so status quo should be maintained and should be capped at 26 per cent.
The better way to ensure that subversive content is not broadcast through TV channels is by having proper content monitoring and regulation through content code, instead of using foreign investment limits as the tool for this purpose, Trai said.
Some operators felt that uplink policies of government already impose terms by which an increase in the foreign investment cap to 49 per cent will not result in shifting of management or editorial control to foreign entities.
On the other hand, the upward revision will make more sources of funding available in the sector.
In the carriage services, Trai has proposed hike in the limits of foreign investment for cable networks from 49 per cent to 74 per cent.
The regulator has recommended that the total foreign investment, including FDI for HITS (Headend in the Sky), should be 74 per cent. There is no policy till date over this form of carriage services. HITS is an alternate distribution platform.
In teleport (Hub), mobile television and Direct to Home companies also, the total foreign investment should be 74 per cent, Trai suggested.
The current foreign investment limit in teleport and DTH is 49 per cent. But in case of DTH, the FDI component is not allowed to cross 20 per cent.
No policy exists for foreign investment limit in mobile TV as on date.
Majority of stakeholders had suggested 74 per cent foreign investment limit for television distribution