TRAI recommends zero licence fee for DTH services
Suggests doing away with the licence fee after the end of financial year 2026-27
The Telecom Regulatory Authority of India (TRAI) has recommended to the government to do away with the licence fee for DTH operators after the end of financial year 2026-27. The move is aimed at ensuring sustainability for the sector.
The recommendations were issued by TRAI on a consultation paper titled ‘Licence fee and policy matters of DTH services’. The rule requires DTH licensees to pay an annual licence fee equivalent to three per cent of adjusted gross revenue (AGR) which is to be brought down to zero fee in the next three years.
“DTH licensees should not be charged any licence fee after the end of the financial year 2026-27. The licensee should submit an initial bank guarantee from any scheduled bank to the Ministry of Broadcasting (MIB) for ₹5 crore for the first two quarters. Thereafter, the licensee should submit a bank guarantee (BG) from any scheduled bank to the MIB for an amount equivalent to the Initial BG (i.e., ₹5 crore) or 20 per cent of the estimated sum payable, equivalent to License Fee for two quarters and other dues not otherwise securitized, whichever is higher,” TRAI said.
Once the licence fee becomes zero, the licensee should submit a BG (performance bank guarantee) for a fixed amount equivalent to the initial BG (i.e., ₹5 crore) from any scheduled bank to the Ministry, which should be valid for a minimum of one year and renewed every year to ensure it remains valid for the entire currency of the licence agreement, the regulator said.
