Telecom regulatory authority of India (TRAI) today recommended 74% foreign investment limit in mobile TV. At present, there is no policy on FDI in mobile TV. TRAI also proposed raising foreign investment (FDI+FII) in uplinking of news channels and FM radio to 49%. Currently, FDI in FM radio is 26% and uplinking of news channels is 20%.

"We want investment in broadcast sector should be such that it leads to digitization of delivery mechanism," said Nripendra Misra, chairman of TRAI. The idea is to modernize the network with state of art technology so that the quality of services is good. In proposing the new guidelines, we wanted to ensure that all the security conditions that are applicable to telecom networks are made applicable in broadcast sector,” said Misra.

Some of the broadcasters had apprehensions that if foreign investment cap is raised to 49% for news and current affairs TV channels, it mat be threat to national security as broadcast is a sensitive sector.

The better way to ensure that subversive content is not broadcast through TV channels is by having proper content monitoring and regulation through content code, instead of using foreign investment limits as the tool for this purpose, said regulator.

In the carriage services, TRAI has proposed hike in the limits of foreign investment for cable networks from 49 per cent to 74 per cent. The regulator has recommended that the total foreign investment, including FDI for HITS (Headend in the Sky), should be 74 per cent. There is no policy as on date over this form of carriage services. HITS is an alternate distribution platform.

In teleport (Hub), mobile television and Direct to Home companies also, the total foreign investment should be 74 per cent, TRAI suggested. The current foreign investment limit in teleport and DTH is 49 per cent. But in case of DTH, the FDI component is not allowed to cross 20 per cent.

No policy exists for foreign investment limit in mobile TV as on date. Majority of stakeholders had suggested 74 per cent foreign investment limit for television distribution -- DTH, HITS, cable network and teleport. Some suggestions for 49 per cent foreign investment limit in these segments were received, TRAI said.