DTH licensing policy change detrimental, raises liability risk: Crisil

Top four direct-to-home (DTH) operators are staring at a payout of up to Rs 8,000 crore to the government to renew their licences following a recent policy change, a ratings agency said on Wednesday.

Crisil Ratings said the December 30, 2020 policy change by the Ministry of Information and Broadcasting (MIB) “materially raises” liability risk for all the DTH operators.

The new licensing guidelines could significantly increase the potential liabilities of incumbents when renewing their licences, it said.

The guidelines say renewals will be subject to broadcasters clearing all their dues and fulfilling all obligations under the terms and conditions of their extant licence, and also those arising out of legal cases pending before various courts, it explained.