AIDCF writes to Ashwini Vaishnaw, says representations on DTH fee cut ignored
The cable industry body argued that the move would significantly distort the existing level playing field between DTH and Cable TV operators.
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The All India Digital Cable Federation (AIDCF) has written to Union Minister of Information and Broadcasting, Ashwini Vaishnaw, strongly urging the Government to reject the Telecom Regulatory Authority of India’s (TRAI) latest recommendation to reduce the Direct-to-Home (DTH) license fee from 8% to 3%, with a view towards its eventual elimination.
In a formal representation dated July 21 (a copy of which is with Storyboard18), AIDCF Secretary General Manoj P. Chhangani cautioned that the proposed reduction would lead to “far-reaching and potentially irreversible consequences” for the survival of over 880 Multi System Operators (MSOs) and 1.6 lakh Local Cable Operators (LCOs) nationwide.
The letter states, "The Federation has, on multiple occasions, sought to address this issue through formal representations, including the recent letter of 19th June 2025 (enclosed herewith), but regretfully, the matter has not received adequate consideration."
Storyboard18 had first reported about AIDCF writing to MIB opposing license fee reduction.
The cable industry body argued that the move would significantly distort the existing level playing field between DTH and Cable TV operators. While both sectors have co-existed competitively over the last decade, AIDCF stated that DTH operators have already benefited from substantial advantages such as administrative allotment of spectrum free of cost—a benefit worth approximately ₹45,000 crore over 20 years, by AIDCF’s estimation.
To offset this, a 10% license fee on Adjusted Gross Revenue (AGR) was introduced at the time of initial licensing. AIDCF emphasized that reducing this fee now would unfairly tilt the scales further in favor of DTH players, exacerbating challenges faced by cable operators, who are already grappling with growing competition from OTT platforms, Connected TVs, Fast Channels, and Prasar Bharati’s Free Dish service.
The Federation also raised concerns over the lack of transparency and stakeholder engagement in TRAI’s recommendation process. It pointed out that the original consultation paper dated January 13, 2023, did not explicitly seek views on reducing the license fee from 8% to 3%, denying stakeholders a fair opportunity to provide input on this critical matter.
Highlighting the risks of business closures and job losses, AIDCF warned that “acceptance of this recommendation would have a devastating impact on the Cable TV industry, potentially leading to widespread shutdowns” and putting at risk the livelihoods of nearly 10 lakh individuals.
The Federation called on the Ministry to maintain the current license fee regime and consider a framework that reflects the full commercial value of spectrum use to ensure fairness, protect public revenue, and secure the future of the cable sector.
AIDCF has also requested a formal meeting with the Minister to present its concerns in detail.
