The Union Cabinet Has Recently Approved Revised Guidelines for the Direct to Home Services, Allowing About 100% of the Foreign Direct Investment

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The Union Cabinet Has Recently Approved Revised Guidelines for the Direct to Home Services, Allowing About 100% of the Foreign Direct Investment

The Union Cabinet Has Recently Approved Revised Guidelines for the Direct to Home Services, Allowing About 100% of the Foreign Direct Investment

The Union Cabinet has recently approved revised guidelines for the direct to Home Services, allowing about 100% of the foreign direct investment as well as increasing the license period for 20 years. The issue is that FDI concerning the DTH is currently at about 49%. It has been enhanced to about 100% by the Government of India. Before we understand what are the other feature-concerning this particular issue. Let's understand the basic principle of DTH. The DTH stands for direct to home television. You already have something called a personal dish, which is attached to an individual home. So the signals 
are directly given from the satellites and, ultimately, we would be able to watch all the channels that we have subscribed to with the help of this direct to home television. So how does it work? If we have the satellite signals, which are directly taken up by these personal dishes in an individual home. So the TV channels would be transmitted from the satellite to a small dish antenna which is mounted on top of our rooftops, in our homes, so the broadcaster will directly be able to connect to the user. And in this particular scenario, we don't have to speak to the cable operators. When you look into the earlier scenarios, we had huge antennas. Where one cable operator used to have it. He used to transmit the signals to our homes as well. So required cables from the cable operator to our homes, and also this required amplifiers as signals were transmitted from the cable operators to our homes and now we have is the direct signals from the satellite onto the small dishes that are placed in our homes, so the satellites that are used for this particular purpose is the geostationary satellite. When it comes to the DPH market in India. It is dominated by Tata Sky, which has more than 30%, followed by DISH TV, which has approximately around 30%. Airtel has a market capture of over 23% and Sun Direct has a capture of nearly 14%.

What are the other guidelines which have been accepted by the government?. We have the license fee, which has been revised from 10% of the gross revenue to 8% of the adjusted gross revenue. Under the revised guidelines, the license will be issued for 20 years compared to 10, years, which was prevalent earlier and this can be renewed fo10 years as well. Now, the license will also be collected quarterly, not on the annual basis. So what will be the significance of this particular move, since we will have the better guidelines longer license period, clarity on the renewals when a  company can go ahead and deliver. They have relaxed the FDA limits. This will make sure that all the stability that is required in this sector will be provided by the government. And this will ultimately mean there'll be more investment into this particular sector by foreign investment. And ultimately, this will also provide employment opportunities to the people in this particular sector. So the employment opportunities stability in the sector and investment, are the major significant factor.

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