INDIA BUSINESS WORLD - JUNE 1st - JUNE 30th - 2008
GOVT OKAYS 74% FDI IN SATELLITE RADIO
TELECOM regulator Trai has sent its revised recommendations on satellite radio, where it has recommended an FDI cap of 74% and a 4% revenue share for all players who want to offer services on this platform. It has been learnt that the I&B ministry has accepted the regulator’s latest recommendations on the satellite radio policy. Satellite Radio Service refers to distribution of single or multi channel radio programmes by using a satellite system, which provides encrypted digital radio signals direct to subscribers’ receiver sets. Currently, World Space is the only player in India to offer such a service. On the implementation of the new policy, WorldSpace will not only have to find a local partner to hold a 26% equity stake in its Indian operations, but will also have to share 4% of its revenues with the government here.
Trai has also said that there be no cap on the number of licences to be issued, but said that the government in consultation with the Wireless Planning & Coordination Wing of DoT and the Indian Space Research Organization (ISRO) should take a call on this issue depending upon the availability of the satellites and spectrum for this platform.
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