Cable vs DTH war escalates as fee cut proposal nears approval
DTH advocates argue the cut would provide much-needed relief in a market hit by OTT-led cord-cutting, stagnant ARPUs, and churn.
ADVERTISEMENT
As the Ministry of Information and Broadcasting moves closer to implementing the Telecom Regulatory Authority of India’s (TRAI) proposal to slash the Direct-to-Home (DTH) license fee from 8% to 3%, cable operators have lodged strong objections, warning that the move could distort competition, undermine market equity, and cause heavy losses to the public exchequer.
In a letter to Union Minister Ashwini Vaishnaw, the All India Digital Cable Federation (AIDCF) had urged the government to reject the proposal, which it says would benefit only four private DTH operators—Dish TV, Tata Play, Airtel DTH, and Sun Direct—while disadvantaging multi-system operators (MSOs) and local cable operators (LCOs) serving over 4.5 crore households.
“Only four private DTH operators—Dish TV, Tata Play, Airtel DTH, and Sun Direct—stand to benefit from this proposal. No other segment of the broadcasting or distribution ecosystem gains. In fact, MSOs and LCOs serving over 4.5 crore households would be further disadvantaged by such preferential treatment,” said Manoj P. Chhangani, Secretary General of the All India Digital Cable Federation (AIDCF).
“Despite multiple detailed submissions to the Ministry of Information and Broadcasting—at the levels of the Additional Secretary, Secretary, and Hon’ble Minister—we have yet to receive any formal response. This lack of clarity is deeply concerning, given the serious fiscal and sectoral implications,” he added.
Chhangani noted that DTH operators already enjoy free spectrum allocation, causing an annual revenue loss of over ₹8,000 crore to the exchequer. “TRAI’s recommendation to cut the license fee from 8% to 3%, with the aim of eventual elimination, would only deepen this fiscal gap. There is no visible benefit to the government or the broader broadcasting ecosystem. It raises the question—why is this proposal being considered if it only benefits four corporate entities?” he asked.
Chhangani outlined AIDCF’s objections:
Loss to the Exchequer: Free spectrum allocation, worth ₹2,280 crore annually per operator if auctioned, is already underpriced; further fee cuts compound the loss.
Regulatory Imbalance: Cable operators bear heavy infrastructure costs like Right of Way charges and last-mile cabling, while DTH operates with lower overhead; the cut widens this gap.
Lack of Transparency: The TRAI consultation paper never explicitly sought stakeholder feedback on cutting the license fee from 8% to 3%, denying fair consultation.
Sectoral Impact: Over 10 lakh livelihoods depend on the cable industry, which this move threatens—undermining India’s affordable digital access goals.
“This is not sector reform—it is sector distortion,” Chhangani concluded.
DTH advocates argue the cut would provide much-needed relief in a market hit by OTT-led cord-cutting, stagnant ARPUs, and churn. Media Pro Research’s Vishal Khanna said it would enable DTH players to invest in hybrid boxes, OTT integration, and rural content delivery—critical to competing not just with cable, but with free platforms like DD Free Dish.
“The argument that cable should get the same relief as DTH ignores a key reality—DTH players have long operated under stricter licensing norms, paid spectrum usage charges, borne satellite transponder costs, and faced higher compliance burdens. Cable MSOs work on terrestrial infrastructure and avoid expensive satellite leasing or uplinking, so demanding parity overlooks the fundamental tech and infrastructure differences,” said Vishal Khanna, founder of Media Pro Research.
“DTH platforms have been instrumental in driving digital TV penetration, especially in rural and remote regions. Rationalising fees here isn’t charity—it aligns with Digital India’s content access goals and supports a sector that’s already under triple pressure from OTT-driven cord-cutting, high churn with stagnant ARPUs, and regulatory uncertainty,” Khanna added.
He explained that a license fee cut could deliver substantial cash flow relief, enabling reinvestment into technology upgrades, hybrid set-top boxes with OTT integration, and more competitive pricing in semi-urban and rural markets.
“The future is in hybrid bundling with OTTs, strengthening regional and vernacular offerings, tapping B2B opportunities in hospitality and transport, and pushing for regulatory harmonisation across DTH, cable, and IPTV. License fee relief is not a handout—it’s oxygen for an industry reinventing itself. In today’s market, the real competition isn’t between cable and DTH—it’s between data and dish,” Khanna explained.
