Subsequent to withdrawal of the prohibition on reception and distribution of television signals in Ku Band, Government of India has now permitted Direct – to – Home (DTH) TV service in Ku Band in India involving distribution of multi channel TV programmes in Ku Band by utilizing a satellite system and providing TV signals directly to subscribers’ premises, thus eliminating the intermediate cable operator.
Salient features to be complied with to avail of a license to set up DTH platform in Ku Band include:
The company applying for DTH license (Applicant Company) must necessarily be an Indian company duly registered under the Indian Companies Act, 1956.
In compliance with eligibility criteria, the Applicant Company cannot hold more than 20% equity shares in a broadcasting company or cable network company.
In turn, broadcasting companies and cable network companies shall not be eligible to collectively own more than 20% of the total equity of the Applicant Company during the license period viz. from the date of issue of wireless operational license by the Wireless Planning and Coordination Wing of the Ministry of Communications for establishment, maintenance and operation of DTH platform, extending over a period of ten years.
Foreign Equity Participation
The total foreign equity holding in the Applicant Company, inclusive of Foreign Direct Investment (FDI), Non Resident Indian (NRI), Foreign Institutional Investors (FII), would be capped at 49%.
Further, the FDI component of the foreign equity in the total paid up equity of the Applicant Company shall not exceed 20%.
Management Control Of Applicant Company
The management control of the Applicant Company would be Indian with a majority of the representatives on the board of the Applicant Company as also the Chief Executive, being resident Indians.
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