Trai recommends reducing license fees for DTH companies to 3%

As part of a broader regulatory shift, TRAI has suggested transitioning broadcasting service authorizations from the Indian Telegraph Act to the Telecommunications Act, 2023, under Section 3(1)(a).

In a relief for DTH companies, India’s telecom regulator TRAI recommended authorization fee for Direct-to-Home (DTH) services from 8% to 3% of adjusted gross revenue (AGR), with plans to eliminate this fee entirely after the fiscal year 2026-27 under its recommendations on Framework for Service Authorisations for provision of Broadcasting Services under the Telecommunications Act, 2023.

The Telecom Regulatory Authority of India (TRAI) has proposed significant changes to broadcasting service regulations, aiming to reduce financial burdens and modernize the sector. As part of a broader regulatory shift, TRAI has suggested transitioning broadcasting service authorizations from the Indian Telegraph Act to the Telecommunications Act, 2023, under Section 3(1)(a). The terms and conditions for these authorizations will be specified in rules notified under Section 56 of the new Act. To streamline the process, a standardized authorization document will be introduced, simplifying eligibility criteria, application procedures, and other key details. Existing license holders will have the option to migrate to the new regime voluntarily, without any processing or entry fees, until their current licenses expire.

In an effort to expand the scope of broadcasting services, the recommendations include the introduction of “Ground-based Broadcasting of a Television Channel” and “Low Power Small Range Radio Service.” To promote efficiency and technological advancements, infrastructure sharing among broadcasting and telecom service providers is encouraged, along with the adoption of interoperable set-top boxes (STBs) to enhance consumer choice and minimize electronic waste.

TRAI has also proposed changes to authorization fees for radio broadcasting services, standardizing the rate at 4% of AGR across all cities. For specified regions, a reduced rate of 2% will apply for the first three years before transitioning to the standard rate. Additionally, the current requirement of an initial ₹5 crore bank guarantee, followed by coverage equivalent to the license fee for two quarters, will be maintained. However, the proposed revision allows for a guarantee of ₹5 crore or 20% of the authorization fee for two quarters, whichever is higher. The existing mandate of a ₹40 crore guarantee for the first three years is also set to be reduced to ₹5 crore for the entire authorization period. These recommendations aim to align broadcasting services with the Telecommunications Act, 2023, reduce financial obligations for service providers, and foster technological advancements within the industry.