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High Stakes on Airwaves: Cable Industry Battles TRAI’s Proposed Satellite Subsidy


Updated: July 18, 2025 17:46

Image Source : Legal Era
The All India Digital Cable Federation (AIDCF) has formally urged the Ministry of Information and Broadcasting to reject the Telecom Regulatory Authority of India’s (TRAI) proposal to slash Direct-to-Home (DTH) license fees, citing deep structural inequities and market destabilization risks.
 
Key concerns raised:
  • - TRAI’s proposal recommends reducing the DTH license fee from 8% to 3%, with plans to phase it out entirely by FY 2026–27.
  • - AIDCF argues that DTH operators already enjoy free spectrum allocation in the Ku band, while cable operators bear heavy infrastructure costs.
Structural disparities:
  • - Cable TV operators pay up to Rs 3,000 per pole annually in Right of Way charges and Rs 8 lakh per km for underground cabling.
  • - DTH operators face minimal capex for customer acquisition and no sunk costs during churn, giving them a commercial edge.
Economic implications:
  • - AIDCF warns that reducing or waiving DTH license fees could erode public revenue and threaten the livelihoods of nearly 10 lakh individuals in the cable TV ecosystem.
  • - The federation calls for a regulatory framework that recovers full spectrum costs from DTH operators to ensure parity.
Policy outlook:
  • - The Centre is reviewing stakeholder feedback before finalizing its stance.
  • - AIDCF’s letter emphasizes the need for equitable regulation to prevent further erosion of cable TV’s competitiveness.
Sources: Economic Times, Tribune India, Devdiscourse, TRAI Consultation Papers

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