New Delhi, Dec 24 (PTI) The Indian Broadcasting Foundation (IBF) has welcomed the revised direct-to-home (DTH) guidelines, saying it will provide certainty and help the industry grow.

However, it has also urged the government to remove cross-media ownership restrictions in the DTH industry, said the IBF in a statement.

The Union Cabinet on Wednesday approved the revision in guidelines for providing DTH services in the country, under which licences will be issued for 20 years. Currently, the licence is valid for 10 years for DTH players.  

The Cabinet also approved 100 per cent FDI limit in the DTH broadcasting services sector, against 49 per cent currently.

"These revisions will help provide certainty and grow the DTH sector, which already serves about 70 million households across the country. We laud the government's push to bring a level-playing field between DTH and cable TV in terms of license fees," said the IBF.

Growth in the DTH sector will help boost India's television penetration, which is still at just 70 million, it said.

"However, in terms of inspiring investment in the sector, a unique vertical investment restriction persists for DTH, a restriction absent in cable or IPTV (internet protocol television)," the IBF said

It also urged the government to reconsider removing the cross-media ownership restrictions in DTH, which is stifling the growth of the sector as such restrictions work against convergence and economies of scale.

Similar to cable and IPTV, DTH could benefit from natural synergies and efficiencies between a broadcaster and platforms.

"We hope the government will consider bringing in a level-playing field in terms of investment in the sector as well, and remove this restriction," it said.

The IBF is an association of television broadcasters. IBF members provide channels and programmes that deliver about 90 per cent of television viewership in India.

According to a report by sectoral regulator Trai, the DTH industry has an active subscriber base of 72.44 million paying customers in the quarter ended March 31.

This was in addition to free DTH services of public broadcaster Doordarshan.

Tata Sky with a share of 32.33 per cent was leading in the segment, followed by DishTV with 29.49 per cent. Bharti Telemedia has 23.65 per cent and Sun Direct TV has 14.53 per cent.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)