The Telecom Regulatory Authority of India (TRAI) released a consultation paper on 3rd March 08 for reviewing the foreign-direct-investment (FDI) limits imposed on all sectors of the broadcasting industry, a move that could result in major liberalization of foreign-ownership regulations.
TRAI has asked for suggestions from the industry which include raising FDI limits to 74% for Headend in the Sky (HITS) and DTH operators, up from just 20% in the case of the latter, but keeping the limit for cable TV operators at 49%. Cable TV operators say they are unhappy that the TRAI has recommended that they be granted a substantially lower FDI limit that their DTH rivals, which they say will significantly limit their appeal to foreign investors.