DTH license fee to be charged on adjusted gross revenue: TDSAT

Mumbai: Broadcast tribunal TDSAT has ruled that licence fees for direct-to-home (DTH) services should be charged on the basis of adjusted gross revenue and not on gross revenue, similar to what is being followed in the telecom industry.

Passing an order in a case filed by TataSky, the tribunal directed that licence fee should be based on revenues arising out of licensed activities only, and not on the basis of entire revenue earned by DTH operators.

TataSky had challenged direction of the ministry of information and broadcasting to pay 10 per cent of its whole earning as license fee.

Striking down the directions issued by the ministry in July 2006 that asked TataSky to pay licence fee based on calculation of its entire revenue, the tribunal said that its order dated 7 July 2006 related to a similar case in the telecom industry should apply.

In that order, the telecom disputes settlement and appellate tribunal had defined adjusted gross revenue (AGR) and said that telcos would have to pay for only licensed activities.

The tribunal also held that money earned from sale of set-top-boxes, dish, installation, subscription and service revenue would be part of AGR.