Tuesday, April 03, 2012

Govt may clear FDI cap in broadcasting services
Press Trust of India / New Delhi Apr 03, 2012,
Keep watch on Kohinoor Broadcasting Corporation Ltd (CMP: Re.0.74) and Vision Corporation Ltd (CMP: Rs.1.18) in the small and micro-cap space. In the large cap space it is none other than Dish TV Ltd

The state-of-the-art-studio of Kohinoor Broadcasting Corporation Ltd
The Union Cabinet is expected to soon consider a proposal to increase foreign direct investment (FDI) cap in broadcasting services like Direct-to-Home and cable TV networks to a uniform 74%.
Among different segments, 74% FDI would be considered in mobile TV, which is an area of future growth, an industry ministry official said, adding, "the proposal has gone for Cabinet's approval."
The proposal, mooted by Department of Industrial Policy and Promotion (DIPP) in the Industry Ministry, has proposed that FDI limits in the broadcast carriage services providers, including Head-end in the Sky (HITS) must be uniform.
HITS is a satellite multiplex service that provides cable channels for cable television operations.
At present, 49% FDI is allowed in cable TV and DTH, while it is 74% in HITS.
However, for the TV news channels, FM radio and content providers, the FDI limit will stay at 26%, the official said.
He said uniformity has been proposed keeping in view convergence of technologies in the broadcasting and telecom sectors.
In June 2010, Telecom Regulatory Authority of India (Trai) had suggested to raise the FDI for broadcast carriage services like DTH to 74%.
As per an estimate, there are about 106 million households with cable and satellite TVs in India, of which 26 million use DTH and 80 million get feed from the cable network.
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