The Indian Information and Broadcasting (I&B) ministry is likely to take a stern step against Bharti Telemedia by suspending its direct-to-home (DTH) licence. The Government is up against Bharti Telemedia’s foreign direct investment (FDI) as it feels the Delhi-based DTH service provider broke the cross-media ownership regulations.

Bharti Telemedia has holdings of 40% from Bharti Airtel which again has a foreign stake 21.6%. As per the laws, the DTH licensing with FDI depends a calculation based on pro-rata basis and also needs the Foreign Investment Promotion Board (FIPB) approval. The remaining 60% remains with the Bharti Enterprises.

The Government seems to be disappointed with the reply the company sent in response. Earlier, a suspension letter was fired off by the I&B ministry reminding Bharti that, as a registered cable operator, it needs to follow DTH licensing norms which states that no broadcasting companies or cable network companies should collectively hold than 20% in the DTH.

But in a comment to Business Standard, Bharti sounded adamant as it claimed of following all the necessary regulatory guidelines including FDI and the foreign equity component as laid down in DTH licence conditions and requirements.

Sources close to the I&B ministry has said the suspension of the Bharti’s DTH licence is just a matter of time. The suspension order may come at any time and is just awaiting I&B Minister, Priya Ranjan Das Munshi’s green nod.

With more big players moving into the DTH market, this particular case will definitely compel new and existing players to follow the guidelines properly, or else. X