AIDCF Challenges TRAI's Proposal on DTH License Fee Reduction

The All India Digital Cable Federation (AIDCF) has officially challenged the Telecom Regulatory Authority of India's (TRAI) recent proposal, which suggests lowering the license fee for Direct-to-Home (DTH) operators. The Federation has voiced concerns to the Ministry of Information and Broadcasting, arguing that the suggested reduction from 8% to 3%, with plans for complete elimination by 2026-27, perpetuates inequality between DTH and cable TV operators.

AIDCF's letter to the Ministry in June claims that the current spectrum allocation, which is free for DTH operators in the Ku band, already gives them a significant advantage. This, coupled with the waiver of license fees, would further upset the balance, causing a substantial loss to the public exchequer. The Federation insists that such policy shifts could lead to market destabilization and threaten the livelihoods of approximately 10 lakh individuals reliant on the cable TV industry.

The letter highlights that cable TV operators bear significant costs, such as Right of Way (ROW) charges, which can reach up to Rs 3,000 per pole annually, and capital expenditures of Rs 8 lakh per kilometer for underground cabling. In contrast, DTH operators incur considerably fewer costs for customer acquisition and infrastructure, which supports their argument against reducing the DTH license fee. AIDCF calls for a regulatory framework that reflects the actual spectrum costs assigned to DTH operators to maintain equity and sustain government revenue.

(With inputs from agencies.)