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Murdoch to lobby for DTH venture during India visit

Bipin Chandran

James Murdoch, chairman and chief executive of the Hong Kong-based Star Group, will be in India next week to push for the company's direct-to-home venture in India called Space TV.

According to sources, Murdoch has sought appointments with the information and broadcasting minister Sushma Swaraj and senior I&B ministry officials. He is also expected to meet other senior cabinet ministers to push the company's case.

Murdoch's visit assumes significance in light of the fact that the government is pushing for the conditional access system, which is perceived as an alternate, and hence a threat, to a DTH-based cable television system.

The government had last month asked Space Television for more details on the company's ownership structure, and had said that the company's license application did not fit the its DTH policy.

In its application, Space TV asked for removal of the 49 per cent foreign investment cap, and waiver of the revenue sharing clause with the government.

Star has maintained that sharing 10 per cent of its annual revenue with the government, as stipulated by the DTH policy, would not be feasible for its DTH venture to be commercially viable.

The company, in its license application, has also asked the government to lower duties on import of set top boxes, which are needed to access a DTH service.

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