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TRAI recommends raising FDI limit in news channels and FM radio services to 49%

23 Aug 2013 Evaluate

The Telecom Regulatory Authority of India (TRAI), in line with the recommendation of committee led by economic affairs secretary Arvind Mayaram, has recommended that the foreign direct investment (FDI) limit in news channels and FM radio services be raised from 26% to 49%, subject to clearance by the Foreign Investment Promotion Board (FIPB). It also recommended that the FIPB approval process be streamlined and made time-bound.

In its recommendations on FDI limits and approval routes thereof in various segments of the broadcasting sector in India, the regulator segmented its approval in three categories viz; broadcast carriage services, television content services and FM radio services.  Further it said that in Broadcast Carriage Services, DTH, HITS, IPTV, Mobile TV, Teleports Cable Networks ( Multi System Operators (MSOs) operating at National or State or District level and undertaking upgradation of networks towards digitalisation and addressability), where the existing limit is 74% (up to 49%-Automatic route and Beyond 49%-FIPB route) and Cable Networks (Other MSOs not undertaking upgradation of networks towards digitisation with addressability and Local Cable Operators (LCOs)), where the present approval is 49% through Automatic route, the limit should be increased to 100%, with up to 49% through Automatic route  and beyond 49% through FIPB route.

In TV Content Services, Uplinking of ‘News & Current Affairs’ TV Channels and FM Radio, where the present limit is 26% through FIPB route, TRAI has recommended increasing the limit to 49% through FIPB route. However, it has recommended maintaining status-quo of 100% through FIPB route in Uplinking of non-‘News & Current Affairs’ TV Channels and Uplinking of ‘News & Current Affairs’ TV Channels in TV Content Services.

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