FDI Norms for Broadcast

Govt hikes FDI limit in DTH & Digital cable svc providers(MSOs) to 74% Alert:The earlier limit was 49% for DTH segment. FDI limit was 74% for Headend in the Sky (HITS), bringing DTH on par now Alert:HITS- A satellite multiplex svc provides TV channels for cable operations 49% can come through ‘automatic route’ Any FDI limit beyond 49-74% will need the approval of FIPB Alert:Existing 26% limit will continue for FM radio & TV news channels Alert: 74% FDI was allowed in Mobile TV, among other segments Key Points: It will also be a huge boost to digitization Estimated Rs 25000-Rs 30000 cr funds required for digitization: Rpts Relaxation in FDI limits critical for MSOs, DTH It includes Hathway, Den & Dish TV to fund their capex needs Hard Facts: India is estimated to have 106 mn households with cable, satellite TV Some 26 mn use DTH & 80 mn receive feed from cable networks Experts say Digitising these homes need an overall invest of over $20 bn