New Delhi: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has urged Ministry of Information & Broadcasting (I&B) to roll out FM Phase III Policy in a bid to add more than 780 radio channels in about another 275 cities and towns as also make recommendations to Foreign Investment Promotion Board to raise FDI’s limit in FM radio from existing 20% to 49%.

In a representation addressed to Ministry of I&B by ASSOCHAM President, Dr. Swati Piramal, the Chamber has also suggested that foreign equity stake in Direct to Home Services (DTH) be raised from 49% to 74%.

The ASSOCHAM Chief said that success of FM radio industry and it’s popularity and access would depend provided it is broadbased for which FM Phase III Policy draft needs to be unveiled as soon as possible.

The policy if unveiled as recommended would expand and broadbase spread of FM channels to large number of cities and towns as it’s popularity has already grown in more than 200 towns and cities for which licences were issued as per earlier FM policies with appropriate royalty structure for licencing music content, holds the ASSOCHAM.

However, the FM phase III policy document which should have been released a couple of months ago has been delayed inordinately. The delay should not happen further as government has been loosing volumes of revenue. The FM phase III policy should have clear provision for providing autonomy to operators of FM news channels to telecast their own news content. Although, earlier FM policies are quite liberal but news content broadcast in FM channels are still regulated by Ministry of I&B which produce news from All India Radio.

The ASSOCHAM would recommend that in Phase III policy of FM, licencees should have the liberty to create their own news content with proper infrastructure in place, added Dr. Piramal.

On the issue of FDI’s limit in FM channels, the ASOSCHAM has recommended that it be raised to 49% from current level of 20%.

The ASSOCHAM has pointed out that presently rules regarding FDI vary from segment to segment in entertainment industry which create confusion and discourage foreign investors from investing in India’s media and entertainment.

Dr. Piramal pointed out that 20% FDI’s permitted in FM radio segment are also subject to approvals of Foreign Investment Promotion Board (FIPB). In addition, Ministry of Information & Broadcasting and Wireless Operating Licence from the Wireless Planning & Coordination (WPC) Wing, which falls under jurisdiction of Ministry of Communications too have roles in 20% FDI’s permitted in FM radio. The process even now is too cumbersome to woo FDI’s in FM segment and thus needs to be not only reviewed with single window clearance but also required to be hiked to propose limit of 49%.

In Direct-to-Home Services, current ceiling of FDI’s is 49% provided FIPB approves such investments. Licence from I&B in consultation with Ministry of Home Affairs and Department of Space also needs to be taken simultaneously. Standing Advisory Committee for Frequency Allocation (SACFA) clearance is also required from Wireless Planning & Coordination Wing from Ministry of Communications. Shouldn’t it be reviewed urgently, paving waves for higher FDI’s in DTH, asked the ASSOCHAM President?

The ASSOCHAM has, therefore, urged the government to consider it’s proposals as regards to streamline FDI’s regime for M&E sector so that it grows at the required pace and catch up with the best existing in developed and developing economies.

Source: Orissa Dairy

NEW DELHI: Industry body Assocham has urged Finance Minister Pranab Mukherjee to withdraw the 5 per cent customs duty on set-top boxes (STBs) in the forthcoming Budget to encourage digitisation in the broadcasting sector.

“This is aimed at providing support to the direct-to-home (DTH) industry and advance objectives of digitisation,” the chamber said in a pre-Budget memorandum.

Assocham said customs duty on STBs was exempted in 2006 to provide impetus to industries involved in digitisation of TV services like DTH, IPTV and digital cable. But this was reimposed in the last Budget, it said.

DTH companies offer STBs at subsidised prices to the consumers. The companies are estimated to pay USD 24-50 per STB, including the cost of smart cards. But last year when the government imposed 5 per cent custom duty, these firms had passed on the burden to consumers.

Assocham President Swati Piramal said, “by supporting DTH, which use set-top boxes, digitalisation can be achieved in the entire country in a transparent manner and in the shortest possible time.”

Source: Indiantelevision.com

NEW DELHI: Industry body Assocham on Sunday asked the government to increase foreign direct investment limit in FM radio to 49 per cent from the current 20 per cent and in Direct-to-Home services to 74 per cent from 49 per cent to make the sector globally competitive.

“There is a need to urgently streamline FDI regime for the media and entertainment sector. The government should hike FDI ceiling in FM radio to 49 per cent and for Direct-to-Home (DTH) services to 74 per cent,” Assocham said.

In its representation to the Ministry of Information and Broadcasting and the Ministry of Finance, the chamber has pointed out that the present rules regarding FDI vary from segment-to-segment in media and entertainment sector.

This creates confusion and discourage foreign investors from investing in the country’s media and entertainment segment, it said.

The chamber said there is a need to review FDI policy to bring consistency and to provide a level playing field for competing technologies. “This issue has gained importance on account of increasing convergence in broadcasting and telecommunication technologies and the impact of this convergence on competition in the global market,” Assocham President Swati Piramal said in a statement.

Citing an example, Assocham’s study said Japanese companies such as Canon, which have a production base in Thailand for cameras and office equipment, would be at an advantage once the tariff barrier falls.

The chamber pointed out that the process is too cumbersome to woo FDI in FM radio and thus need not to be only reviewed with single window clearance but also to be hiked to a proposed limit of 49 per cent.

Similarly, in Direct-to-Home Services, current ceiling of FDI is 49 per cent requires foreign investment proposal board (FIPB) approval along with licence from the Information and Broadcasting Ministry in consultation with Ministry of Home Affairs and Department of Space, Assocham said.

Further, it said, the limit in cable networks should go up to 74 per cent from existing 49 per cent and that of their share in uplinking a news and current affairs TV channel be raised to 49 per cent from current levels of 26 per cent.

Source: The Economic Times