TRAI issues recommendations for FDI in broadcasting sector

Media companies shot up on Wednesday as the Telecom Regulatory Authority of India (TRAI) came out with to the information and broadcasting ministry on foreign investment caps in the broadcasting sector. TRAI has recommended that foreign investment in broadcast carriage services such as DTH, IPTV, HITS and MSOs should be hiked to 74% and in local cable operators (LCOs) by 26%. The key beneficiary of this would be DTH players such as Dish TV as their current foreign direct investment (FDI) cap is 49%.

TRAI has also recommended 26% foreign investment in radio companies versus the current 20%, with companies such as ENIL and Reliance Media World benefiting the most.

News and current affairs foreign investment cap is recommended at 26% with no restriction on uplinking and downlinking of TV channels except for news. All foreign investment less than 26% will be via the automatic route with above 26% will require prior approval from the government.

Source:Moneycontrol.com
Posted by:Kartik Gala