DTH cos asked to pay ₹16kcr licence fee dues

MUMBAI: The ministry of Information and Broadcasting has issued demand notices totalling Rs 16,000 crore to the country’s four private direct to home (DTH) operators over outstanding licence fees, industry sources told ET, potentially compounding problems for an industry battling dwindling revenues and subscriber losses to OTT platforms and DD Free Dish.

These demands cover both the principal amount and accrued interest on the dues, said the officials cited above. They said that the operators have communicated to the government that the notices cannot be enforced, as the matter is sub judice in various High Courts, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), and the Supreme Court.

Dish TV CEO Manoj Dobhal acknowledged the pressures facing the sector.

"The DTH industry is navigating a difficult phase, with factors such as subscriber churn driven by competition from OTT platforms and DD Free Dish, along with taxation and regulatory issues,” Dobhal said. “Given these challenges, we would have hoped for a more supportive approach from the authorities."

To be sure, the licence fee demand is more than the combined revenue of the four private DTH operators, which stood at Rs 10,230 crore in FY24, down 5% from Rs 10,837 crore the previous year, as per regulatory filings.

In its correspondence, the ministry said the figures are subject to reconciliation based on the outcome of audits by the Comptroller and Auditor General (CAG), as well as pending court decisions.

In its Q4 FY25 regulatory filing, Dish TV disclosed that it had received a communication from the ministry dated 22 April 2025, directing the company to pay Rs 6,735 crore toward licence fees, including interest, covering the period from the grant of its DTH licence up to FY24. The company added that it has disputed the demand in its response.

As of FY24, Tata Play has received a consolidated demand of Rs 3,628 crore, including Rs 1,401.66 crore in interest. Sun Direct has received a demand of Rs 1,051.84 crore (excluding interest) as of March 2024.

As of March 2025, Dish TV had made a provision of Rs 4,612 crore towards licence fee dues. Tata Play had provisioned approximately Rs 2,002 crore and recognised a further Rs 2,280 crore as a contingent liability. Bharti Airtel had made provisions of about Rs 3,426 crore as of 31 March 2024.

Bharti Telemedia, Tata Play and Sun Direct declined to comment on the matter.

A senior DTH executive added that the ministry has raised similar demands in the past even when legal disputes remain unresolved.

“DTH operators have repeatedly urged the ministry to exclude pass-through costs, such as content expenses, from the licence fee calculations and to address the issue of double taxation. However, these concerns are yet to be addressed,” the executive said.

The DTH industry lost 8 million subscribers between FY21 and FY24. The active pay DTH subscriber base stood at 58.22 million, as of December 2024.

The Telecom Regulatory Authority of India (TRAI) has, on two occasions, recommended phasing out the DTH licence fee by the end of FY27. Since 2020, TRAI has issued 17 recommendations aimed at reforming the broadcasting sector.

The ministry of information and broadcasting has historically calculated the licence fee as 10% of gross revenue, without deductions. However, in 2020, it amended the DTH guidelines to set the licence fee at 8% of adjusted gross revenue (AGR).