Report

INDIA’S largest private direct-to-home (DTH) operator Dish TV has paid Rs 14.7 crore to the government
in 2007-08. Tata Sky, Sun Direct and Reliance Big TV have paid Rs 13.1 crore, Rs 6.57 crore and Rs 19.35
crore respectively.
Government has been receiving revenue in the form of annual license fee paid by DTH service licensees
as per Article 3 of the schedule forming the terms and conditions of license agreement for DTH services.

Issue of
Cross-ownership
TRAI has recommended that
broadcasters should not be
allowed to own more than 20 per
cent in TV distribution platforms
such as MSO (multi-system
operator), cable TV operator, DTH
(direct-to-home, HITS (Headend-
In-The-Sky) and mobile TV. The
I&B ministry will examine the
recommendation. If approved,
companies such as the Sun
Group, the Essel Group, and Star
India will get three years to
restructure their businesses.
Maran family, the promoter of Sun
Group, own 80 per cent of Sun
Direct. The Essel Group engaged
in broadcasting, DTH, cable and
HITS. Star India owns about 23
per cent stake in MSO Hathway

Revenue from
Cable & Datacom. Star also owns
20 per cent in the DTH business
Tata Sky. Reliance Entertainment
has applied for more than 20

DTH Operators
licences for channels. The group’s
Reliance Communications owns
the DTH business Big TV.

The license fee paid by DTH service licensees during the last three years is as under:-
Name of the DTH licensee License Fee Paid for the Financial Year (in Rs.)

2004-2005 2005-06 2006-07 2007-08

Dish TV India Ltd 2,04,87,187 2,50,00,000 14,38,35,433 14,69,60,763
Tata Sky Ltd --- --- 8,84,90,208 13,10,28,968
Sun Direct TV Pvt. Ltd. --- --- --- 6,57,05,871
Reliance BIG TV Ltd. --- --- --- 19,35,656
(This information was given by Shri Anand Sharma, Minister for Information and Broadcasting & External Affairs, in
a written reply to a question in the Parliament.)

As per the terms and conditions of license, a DTH licensee has to pay an annual license fee equivalent to
10% of its gross revenue in a particular financial year within one month of end of that year. Clause 3.1.1
of terms and conditions of license defines gross revenue, while Form ‘D’ prescribed under Clause 3.1.2 of
the terms and conditions of license prescribes indicative and illustrative items to be included, but the
Auditors are required to include all the income heads qualifying for gross revenue whether or not specifically
included in Form ‘D’. Carriage fee collected and revenues earned from hardware are required to be
included as part of Gross Revenue.

12 | Aavishkar Dish Antenna Programme Guide |March 2009