Telecom Regulatory Authority of India, TRAI came out with two recommendations regarding licensing policy for mobile TV services to the Information and Broadcasting Ministry on Wednesday.
Bidding process for allocation of licenses and the 74% foreign direct investment (FDI) were the two recommendations that TRAI sent to the Information and Broadcasting Ministry.
TRAI said to the ministry in its final recommendations that license holders could use both terrestrial as well as satellite mode for the transmission purpose.
Mobile TV service providers will have two options either offer the service using a telecom network with already-allotted spectrum or the broadcasting method.
The recommendations also state that the selection of broadcasting technology should be left to the service provider, but the technology must be recognised by an authorized body.
“In case the handset is provided by the licensee, it should be ensured that if the subscribers desire to migrate to any other licensee using the same technology and standards, they should be able to do so without changing the handsets,” it explains further.
TRAI said, “existing telecom operators would not require an extra licence and could offer the service using spectrum in their possession.” The regulator suggested creating a new class of mobile TV operators using the broadcast method.
The recommendations said about the criteria for the licencing process, "Minimum net worth requirements of Rs 40 crore for satellite-based mobile television licences and Rs 3 crore for each service area in terrestrial mobile television licenses should be laid down for being eligible to participate in the licencing process. The tenure of both terrestrial and satellite licences should be for 10 years.”
As far as the licence fee is concerned, it will be charged at 4% of Adjusted Gross Revenue (AGR) for each year or at 10% of the reserve one-time entry fee limit for the concerned licence area, whichever is higher.
TRAI further suggested that no mobile TV licence would allow any broadcasting company to hold more than 20% of the total paid equity at any time during the licence period.
Whenever a mobile TV service provider would install its own infrastructure, it must be shared with other such service providers, added further.
TRAI said that apart from Doordarshan, private operators should be assigned at least one slot of 8 MHz each for mobile TV operation using terrestrial systems.
For satellite-based systems also, apart from Doordarshan, private operators may be allocated spectrum such that a bandwidth of at least 8 MHz is available to them for mobile TV services, it said.
On sharing of terrestrial transmission infrastructure of Doordarshan, the TRAI said for better utilization of spectrum, it should be permitted on mutual agreement basis on a non-discriminatory manner.
A state should be the licence area for a mobile television terrestrial service licence and some of the smaller states can jointly form an appropriate licence area so as to enable financially and operationally viable model, TRAI recommended on licencing issue.
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