A 49 per cent cap on foreign equity in broadcast ventures. The foreign channels (STAR, Discovery, NBC Asia, Sony) say they'll be compelled to pack up and leave. But political parties say the cap is too high.
All broadcasters will have to uplink from Indian soil. Foreign broadcasters to be given six months to shift base from the current uplinking location. Service providers complain that the mover will be very expensive although Zee argues that it will only be a one-time investment.
No newspaper owner can hold more than 20 per cent in a body corporate that is granted a broadcast license. Print barons argue that this provision, borrowed from the US, is meaningless in the Indian context because there's a multiplicity of newspapers in every major city. So there's no risk of monopolies developing.
No company that is granted a license in one broadcasting category will be eligible to a license in another category. Few broadcasters and media houses will remain unaffected.
Free-to-air channels, channels that carry no ads, and news, current affairs and sport channels that carry a permitted level of ads will be exempted from licensing. Critics argue that such exemptions can be abused as they leave too much at the discretion of the licensing authority.
Companies incorporated in India will have to did for licenses in various service categories. Observers say the airwaves do not belong to the government and, therefore, it cannot be used to earn revenue. As in the case of newspapers, registration should be enough.
