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Direct To Home (DTH) service providers have sought further reduction in licence fee to make their operations viable even as most of them have found the recent Telecom Regulatory Authority of India’s (TRAI) recommendations favourable.
AGR calculation
Most DTH players said they would want their licence fee to be brought down to around 5 per cent of their adjusted gross revenue (AGR) as compared to 10 per cent of gross revenue (GR), which they are paying now. In July, TRAI, among others, had recommended reduction in existing licence fee to 8 per cent of their AGR. AGR is calculated after reduction of interest and dividend income and earnings from any other bundling of services.
“We want the licence fee to be brought down to below 5 per cent of AGR. Telecom spectrum is a scarce commodity but DTH spectrum is available in abundance. This can support 100 players. Why to charge anything for a commodity that is available in abundance? This is just like pricing water in India on a par with petrol. Eight per cent licence fee is too high,” said Videocon Group Chairman Venugopal N. Dhoot. Videocon provides DTH service under the Videocon d2h brand.
Content cost
“Content cost must be excluded from AGR. Either it should be moved or else the licence fee be brought down to 6 per cent of AGR. Our fight for exclusion of content cost is not over yet. We will approach the Ministry of Information and Broadcasting to press for content cost to be excluded,” said R. C. Venkateish, CEO, Dish TV, and President, DTH Operators Association of India. Dish TV is a part of the Zee Group.
http://www.thehindu.com/business/In...r-reduction-in-licence-fee/article6299308.ece
