Decks have been cleared for Reliance-ADA Group headed by Anil Ambani to enter the direct- to-home (DTH) service, with the government giving in-principle approval.
Sources said the letter of intent (LoI) for the group's foray into DTH was given on Monday to Blue Sky Magic, a company of the Reliance-ADA group.
When contacted, a Reliance Communications spokesperson declined to comment.
In the LoI, the Union information and broadcasting ministry is understood to have asked the company to complete formalities including the bank guarantee and licence fee.
Sources indicated that Reliance-ADA group will complete the formalities by next month. The entry of the group is expected to spice up the DTH market with already four players, including the latest entrants Tata Sky, a joint venture of Tata and Star, vying for a portion of the market. Doordarshan and Essel Group promoted Dish TV have already established their presence.
Reliance-ADA Group had applied for licence to enter DTH services about a year ago when the two Ambani brothers reached a settlement on ownership of the Reliance group.