BUSINESS

Bharti may softlaunch DTH service in Oct

Source:PTI
September 29, 2008 19:19 IST

Sunil Mittal's Bharti group is likely to softlaunch its direct-to-home service in the first week of October.

The company, according to industry sources, is hoping to get a Foreign Investment Promotion Board approval before that. Market sources said the sales team has sounded out October 8 as the launch date.

A Bharti spokesperson said the company does not comment on market speculation, adding, "We have said we will launch our DTH service by this year".

Government had earlier asked Bharti group to seek a separate FIPB approval within three months for its upcoming DTH services.

"The DTH licensee Bharti Telemedia is ordered to seek separate FIPB approval within three months from the date of issue of this order," a directive issued by Information and broadcasting ministry on August 25 said.

The I&B order follows replies by the company to its earlier show-cause notice over alleged 'violation' of FDI and other guidelines.

As per the existing guidelines, any foreign investment in cable and broadcasting company requires FIPB approval. The bone of contention was Bharti Airtel, the group's mobile telephony arm holding 40 per cent stake in Bharti Telemedia, as well as having a cable operator's licence, owning over the permitted stake in the DTH arm.

"Bharti Airtel, which has a 40 per cent share in the DTH licensee company, is registered as a cable operator. The eligibility condition for DTH license provides that the licensee shall not allow broadcasting and/or cable network companies to collective hold or own more than 20 per cent of the total paid up equity in the DTH venture," the notice had said.

Source: PTI
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