TRAI submits broadcast FDI reccos; suggests higher caps

The Telecom Regulatory Authority of India (TRAI) has submitted recommendations on allowing FDI  into the broadcast sector on Thursday, reports CNBC-TV18.

As per the recommendations, FDI in broadcast carriage services including IPTV, DTH and teleport, are to be increased from the current 49 percent to 100 percent, with the requirement of FIPB's approval for FDI beyond 49 percent.

Regarding TV content – TRAI has recommended a status quo of 100 percent FDI in non-news content and for news and current affairs, the regulator recommends increasing the FDI limit from 26 percent to 49 percent through the FIPB route.

With the expansion of the third phase of FM radio announced and auctions to begin shortly, TRAI has recommended increasing the FDI limit from 26 percent to 49 percent through the FIPB route for FM radio stations.

This comes as good news for broadcasters — both TV and radio — as they are largely dependent on advertising revenues which have been hit due to the economic slowdown. Television broadcasters have been seeking for a delay in the implementation of the 10+2 cap on advertising which will further affect bottomlines.