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DTH cos asked to pay ₹16,000 crore licence fee dues

DTH cos asked to pay ₹16,000 crore licence fee dues

Time of India30-05-2025
MUMBAI: The ministry of Information and Broadcasting has issued demand notices totalling ₹16,000 crore to the country's four private direct to home (DTH) operators over outstanding licence fees, industry sources told ET, potentially compounding problems for an industry battling dwindling revenues and subscriber losses to OTT platforms and DD Free Dish.These demands cover both the principal amount and accrued interest on the dues, said the officials cited above. They said that the operators have communicated to the government that the notices cannot be enforced, as the matter is sub judice in various High Courts, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), and the Supreme Court.
Dish TV
CEO Manoj Dobhal acknowledged the pressures facing the sector.
"The DTH industry is navigating a difficult phase, with factors such as subscriber churn driven by competition from OTT platforms and DD Free Dish, along with taxation and regulatory issues,' Dobhal said. 'Given these challenges, we would have hoped for a more supportive approach from the authorities."
To be sure, the licence fee demand is more than the combined revenue of the four private DTH operators, which stood at ₹10,230 crore in FY24, down 5% from ₹10,837 crore the previous year, as per regulatory filings.
In its correspondence, the ministry said the figures are subject to reconciliation based on the outcome of audits by the Comptroller and Auditor General (CAG), as well as pending court decisions.
In its Q4 FY25 regulatory filing, Dish TV disclosed that it had received a communication from the ministry dated 22 April 2025, directing the company to pay ₹6,735 crore toward licence fees, including interest, covering the period from the grant of its DTH licence up to FY24. The company added that it has disputed the demand in its response.
As of FY24, Tata Play has received a consolidated demand of ₹3,628 crore, including ₹1,401.66 crore in interest. Sun Direct has received a demand of ₹1,051.84 crore (excluding interest) as of March 2024.
As of March 2025, Dish TV had made a provision of ₹4,612 crore towards licence fee dues. Tata Play had provisioned approximately ₹2,002 crore and recognised a further ₹2,280 crore as a contingent liability.
Bharti Airtel
had made provisions of about ₹3,426 crore as of 31 March 2024.
Bharti Telemedia, Tata Play and Sun Direct declined to comment on the matter.
A senior DTH executive added that the ministry has raised similar demands in the past even when legal disputes remain unresolved.
'DTH operators have repeatedly urged the ministry to exclude pass-through costs, such as content expenses, from the licence fee calculations and to address the issue of double taxation. However, these concerns are yet to be addressed,' the executive said.
The DTH industry lost 8 million subscribers between FY21 and FY24. The active pay DTH subscriber base stood at 58.22 million, as of December 2024.
The Telecom Regulatory Authority of India (TRAI) has, on two occasions, recommended phasing out the DTH licence fee by the end of FY27. Since 2020, TRAI has issued 17 recommendations aimed at reforming the broadcasting sector.
The ministry of information and broadcasting has historically calculated the licence fee as 10% of gross revenue, without deductions. However, in 2020, it amended the DTH guidelines to set the licence fee at 8% of adjusted gross revenue (AGR).
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DTH companies may get licence fee relief
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Mumbai: The ministry of information and broadcasting (MIB) is reviewing the licence fee structure for direct-to-home (DTH) services as lobbying by operators intensifies amid rising subscriber churn and falling revenues, people aware of the development told ET. The ministry is in the process of preparing a Cabinet note that could lead to a significant reduction in the fee charged to private DTH operators, namely Tata Play, Airtel Digital TV, Dish TV and Sun Direct, the people cited earlier said, adding that any proposal to reduce licence fee will also require approval from the finance ministry, as it involves revenue considerations. Following the inter-ministerial consultation, the proposal will require the Union Cabinet's approval for implementation. DTH providers pay 8% of their adjusted gross revenue (AGR) as licence fee. Industry players argue that this cost has become increasingly difficult to bear, as more consumers migrate to OTT streaming services and the free-to-air DD Free Dish officials confirmed that deliberations are underway and indicated that a decision is likely, though they did not specify a possible revision follows repeated recommendations from the Telecom Regulatory Authority of India (Trai), which has urged the ministry to reduce the fee to 3% in FY26 and abolish it entirely by the end of FY27. Trai argues that DTH platforms should be treated on par with other distribution services, whether regulated or not, such as cable TV, DD Free Dish and OTT platforms, none of which pay a licence fee."The DTH sector is under considerable financial strain, and we urge the government to implement Trai's recommendations without delay," said Dish TV CEO Manoj Dobhal. "Regulatory relief is essential for our viability, especially as consumer behaviour shifts and revenues decline."India's active pay-TV DTH subscriber base has dropped from 70.26 million in 2020 to 56.92 million in 2025, a loss of over 13 million subscribers in five years, according to Trai's Performance Indicators FY24, the combined revenue of the four private DTH operators stood at ₹10,230 crore, down 5% from the previous year. Meanwhile, the IB ministry has issued demand notices worth over Rs16,000 crore to these companies for unpaid licence fees, a figure that exceeds the sector's total annual ministry's licence fee collection from DTH has plunged from ₹1,581 crore in FY22 to ₹648 crore in FY25, a decline of nearly 59%, highlighting the sector's worsening financial operators have previously petitioned the government to eliminate the licence fee altogether. They argue that their platforms should be treated on par with other TV distribution systems such as cable and IPTV, which are not subject to similar levies.

DTH companies may get licence fee relief
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Time of India

time29-07-2025

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DTH companies may get licence fee relief

Mumbai: The ministry of information and broadcasting (MIB) is reviewing the licence fee structure for direct-to-home (DTH) services as lobbying by operators intensifies amid rising subscriber churn and falling revenues, people aware of the development told ET. The ministry is in the process of preparing a Cabinet note that could lead to a significant reduction in the fee charged to private DTH operators, namely Tata Play, Airtel Digital TV, Dish TV and Sun Direct, the people cited earlier said, adding that any proposal to reduce licence fee will also require approval from the finance ministry, as it involves revenue considerations. Following the inter-ministerial consultation, the proposal will require the Union Cabinet's approval for implementation. Explore courses from Top Institutes in Please select course: Select a Course Category Digital Marketing Data Science Design Thinking Healthcare MCA PGDM Public Policy Cybersecurity Management healthcare MBA Project Management Data Analytics Degree Finance Product Management Operations Management Leadership Others Technology Data Science others Artificial Intelligence CXO Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details DTH providers pay 8% of their adjusted gross revenue (AGR) as licence fee. Industry players argue that this cost has become increasingly difficult to bear, as more consumers migrate to OTT streaming services and the free-to-air DD Free Dish platform. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 most beautiful women in the world Undo Government officials confirmed that deliberations are underway and indicated that a decision is likely, though they did not specify a timeline. The possible revision follows repeated recommendations from the Telecom Regulatory Authority of India (Trai), which has urged the ministry to reduce the fee to 3% in FY26 and abolish it entirely by the end of FY27. Live Events Trai argues that DTH platforms should be treated on par with other distribution services, whether regulated or not, such as cable TV, DD Free Dish and OTT platforms, none of which pay a licence fee. "The DTH sector is under considerable financial strain, and we urge the government to implement Trai's recommendations without delay," said Dish TV CEO Manoj Dobhal. "Regulatory relief is essential for our viability, especially as consumer behaviour shifts and revenues decline." India's active pay-TV DTH subscriber base has dropped from 70.26 million in 2020 to 56.92 million in 2025, a loss of over 13 million subscribers in five years, according to Trai's Performance Indicators Reports. In FY24, the combined revenue of the four private DTH operators stood at ₹10,230 crore, down 5% from the previous year. Meanwhile, the IB ministry has issued demand notices worth over Rs16,000 crore to these companies for unpaid licence fees, a figure that exceeds the sector's total annual revenue. The ministry's licence fee collection from DTH has plunged from ₹1,581 crore in FY22 to ₹648 crore in FY25, a decline of nearly 59%, highlighting the sector's worsening financial position. DTH operators have previously petitioned the government to eliminate the licence fee altogether. They argue that their platforms should be treated on par with other TV distribution systems such as cable and IPTV, which are not subject to similar levies.

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