MIB writes to Dish TV on DTH licence extension

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The Ministry of Information and Broadcasting (MIB) is likely to grant Dish TV an interim extension of its direct-to-home (DTH) licence.

In a letter to Dish TV, the MIB has asked the DTH operator to furnish a fresh performance bank guarantee of Rs 40 crore (Rs 400 million).

Dish TV needs also to submit an undertaking to ensure compliance with the final policy governing the DTH licence.

In its letter dated 27 January, the MIB has stated that Dish TV would have to agree to honour the obligations arising from change, if any, in the policy governing the DTH licence.

Dish TV’s board has agreed to furnish the bank guarantee and the undertaking.

The DTH operator has also authorised its officials to complete all the formalities required by the MIB.

The matter relates to the interim renewal of the company’s DTH licence.

When Dish TV’s licence period lapsed, the DTH operator had got a one-year extension. Earlier, the Telecom Regulatory Authority of India (TRAI) had made recommendations on certain terms and conditions for the renewal of DTH licences.

While the MIB is yet to give its nod to these recommendations, it is providing an interim arrangement for Dish TV to continue its DTH services in the country. In its recommendations on DTH licensing, TRAI has sought for restrictions on vertically and horizontally integrated entities.

According to the regulator, an entity that controls a vertically integrated DPO (distribution platform operator) or the vertically integrated DPO itself should not be allowed to ‘control’ any other DPO of the other category.

While the recommendations await government approval, Tata Sky’s DTH licence will also be up for renewal.

The company had launched its service in 2006.

Dish TV, India’s first DTH operator, has a net subscriber base of 14 million

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