New Delhi: The All India Digital Cable Federation (AIDCF) has raised a red flag over the Telecom Regulatory Authority of India’s (TRAI) recommendation to slash the license fee for Direct-to-Home (DTH) operators from 8% to 3%, warning of “devastating” consequences for the country’s cable TV sector if the proposal is accepted.
In a strongly worded letter addressed to Union Minister for Information and Broadcasting, Ashwini Vaishnaw, dated July 21, the cable industry body urged the Centre to reject the move, citing the risk of “far-reaching and potentially irreversible consequences” for over 880 Multi System Operators (MSOs) and 1.6 lakh Local Cable Operators (LCOs) operating across India. The livelihood of nearly 10 lakh individuals is at stake, the Federation warned.
According to AIDCF Secretary General Manoj P. Chhangani, the proposed license fee cut would significantly distort the competitive landscape between DTH and cable operators. While both platforms have co-existed over the past decade, the Federation argued that DTH players already enjoy substantial structural advantages — most notably, the administrative allotment of public spectrum free of cost, which the AIDCF estimates to be worth ₹45,000 crore over a 20-year period.
To address this, a 10% license fee on Adjusted Gross Revenue (AGR) had originally been levied when DTH services were launched. The current 8% fee, therefore, is already a reduction, and further lowering it to 3%, or eliminating it altogether, would unfairly tilt the market further in favor of DTH operators, the cable body asserted.
The AIDCF has also criticized TRAI’s consultation process, calling it opaque and inadequate. It noted that the original consultation paper issued on January 13, 2023, did not explicitly solicit stakeholder views on reducing the license fee to 3%, depriving affected parties of a fair opportunity to respond.
This latest representation follows a series of prior submissions by the Federation, including a letter dated June 19, 2025. AIDCF stated that despite repeated attempts to engage the government on this issue, its concerns have not received adequate attention. The Federation has requested a formal meeting with the Minister to discuss the matter further.
The cable TV industry is already under significant pressure from the rise of OTT platforms, Connected TVs, FAST channels, and the state-run Prasar Bharati’s DD Free Dish service. AIDCF argued that further skewing of policy in favor of DTH platforms could lead to widespread shutdowns across the cable sector.
The Federation concluded its letter by urging the Ministry to preserve the current license fee regime and explore a more equitable policy that reflects the full commercial value of public spectrum usage, safeguards government revenue, and ensures a level playing field for all distribution platforms.
