Media firms divided over raising FDI limit

Media companies are divided on the issue of raising the foreign direct investment (FDI) limit in the sector, including cable, direct-to-home (DTH), Headend In the Sky (HITS), teleport, Mobile TV and IPTV, as suggested by broadcast regulator Trai in a recent consultation paper.

Citing national security, Zee Network (Dish TV, WWIL), Big TV (Reliance ADAG) and Times Global Broadcasting (Times Now) have opposed the Telecom Regulatory Authority of India's (Trai's) proposal for an across-the-board increase in the FDI limit (49 per cent), DTH (49 per cent), HITS (no existing limit) and Satellite Radio (no existing limit) to 74 per cent, the same as in the telecom sector.

But Bharti Airtel, IndusInd Media, and Ortel Communications, among others, have supported the proposal citing convergence of technologies.

Opposing an hike in the FDI cap on media platforms like cable, DTH, IPTV, Mobile TV among others, Zee Network said the FDI cap be retained at 49 per cent in all media-related services. It also sought FDI limits for IPTV and Mobile TV.

The Reliance group's upcoming DTH venture, Big TV, suggested the need to take a complete look at all regulatory aspects. "No useful purpose will be served by rationalising FDI alone," it said.

However, telecom major Bharti Airtel, which is set to launch its DTH venture soon, supported an increase in the FDI cap, specially for DTH, IPTV and HITS platforms.

"The FDI limits in the broadcasting sector should be revised and brought in conformity with the existing limits in the telecom sector to support growing convergence of technologies, to stimulate growth and expansion with fresh inflow of funds, to promote rapid digitisation of broadcasting and cable services through expansion of DTH, IPTV and HITS, etc," Bharti Airtel said in its response.

IndusInd Media, a leading multi-system operator, also advocated the principle of convergence.