As the world is progressing towards digitization, the broadcasting industry has undergone a significant transformation. In India, the shift from analog to digital transmission has led to the emergence of Digital Addressable System (DAS) and Multi-System Operator (MSO) licenses. DAS MSO license is mandatory for anyone who wants to operate a cable TV network in India. In this article, I will walk you through the importance of a DAS MSO license, and the process of acquiring it, and share some tips for a successful application.
Introduction to DAS MSO License in India
The Indian broadcasting industry is regulated by the Ministry of Information and Broadcasting (MIB). The DAS MSO license is issued by MIB under the Cable Television Networks (Regulation) Act, of 1995. The license is mandatory for anyone who wants to operate a cable TV network in India, whether it’s a small local network or a large national network.
The DAS MSO license is granted for 10 years and can be renewed upon expiration. The license ensures that the cable TV network is operated in compliance with the regulations set forth by the MIB. It also ensures that the viewers have access to a wide range of channels and programs.
Understanding the importance of a DAS MSO License
The DAS MSO license is important for several reasons. Firstly, it ensures that the cable TV network is operated in compliance with the regulations set forth by the MIB. Secondly, it ensures that the viewers have access to a wide range of channels and programs. Thirdly, it provides a framework for resolving disputes between the cable TV network operator and the broadcasters. Finally, it enables the cable TV network operator to negotiate carriage fees with the broadcasters.
The process of acquiring a DAS MSO License in India
The process of acquiring a DAS MSO license in India can be divided into three stages – eligibility criteria, application process, and grant of license.
Eligibility criteria for obtaining a DAS MSO License
To be eligible for a DAS MSO license, the applicant must fulfill the following criteria:
- The applicant must be an Indian citizen or an Indian company registered under the Companies Act, 1956/2013.
- The applicant must not have been convicted of any offense under the Cable Television Networks (Regulation) Act, 1995.
- The applicant must have a minimum net worth of INR 5 million (for a network of up to 100,000 subscribers), INR 10 million (for a network of up to 500,000 subscribers), and INR 20 million (for a network of more than 500,000 subscribers).
- The applicant must have a minimum paid-up capital of INR 2.5 million (for a network of up to 100,000 subscribers), INR 5 million (for a network of up to 500,000 subscribers), and INR 10 million (for a network of more than 500,000 subscribers).
Documents required for the DAS MSO License application
The following documents are required for the DAS MSO license application:
- Application form in prescribed format
- A duplicate of the company’s certificate of registration
- Memorandum and Articles of Association (MOA and AOA) of the company
- Audited balance sheet and profit and loss account for the last three financial years
- A bank guarantee of INR 1 million
- a list of the company’s directors and investors
- Details of the technical infrastructure of the cable TV network
- Details of the proposed channels to be carried on the cable TV network
- Details of the proposed subscription charges for the cable TV network
Steps involved in the application process
The following are the steps involved in the DAS MSO license application process:
- Fill out the application form in the prescribed format and submit it to the MIB.
- Pay the application fee of INR 10,000.
- The MIB will verify the documents submitted and issue a Letter of Intent (LOI) if everything is found to be in order.
- Pay the security deposit of INR 1 million and sign an agreement with the MIB.
- Set up the technical infrastructure of the cable TV network and procure the necessary equipment.
- Conduct a trial run of the cable TV network for 30 days.
- Submit a compliance report to the MIB and apply for the grant of license.
- The MIB will inspect the cable TV network and issue the license if everything is found to be in order.
Cost and fees associated with obtaining a DAS MSO License
The following are the costs and fees associated with obtaining a DAS MSO license:
- Application fee: INR 10,000
- Security deposit: INR 1 million
- Annual license fee: INR 1,000 per channel (up to a maximum of INR 25,000 per year)
- Renewal fee: INR 10,000
Tips for a successful DAS MSO License application
The following tips can help you have a successful DAS MSO license application:
- Ensure that you fulfill all the eligibility criteria before applying for the license.
- Submit all the required documents in the prescribed format and ensure that they are complete and accurate.
- Set up the technical infrastructure of the cable TV network well in advance and conduct a trial run to identify and rectify any issues.
- Be transparent in your dealings with the MIB and provide all the information requested.
- Engage the services of a consultant or a lawyer who is familiar with the application process and can guide you through it.
Common challenges and how to overcome them
The following are some common challenges faced by applicants during the DAS MSO license application process:
- Delay in the issuance of the Letter of Intent (LOI) by the MIB.
- Technical issues during the trial run of the cable TV network.
- Disputes with the broadcasters over carriage fees.
To overcome these challenges, applicants can do the following:
- Follow up with the MIB regularly to ensure timely issuance of the LOI.
- Engage the services of a technical expert to identify and rectify any technical issues during the trial run.
- Engage in negotiations with the broadcasters and agree on carriage fees.
Conclusion
The DAS MSO license is a mandatory requirement for anyone who wants to operate a cable TV network in India. The license ensures that the cable TV network is operated in compliance with the regulations set forth by the MIB and provides a framework for resolving disputes between the cable TV network operator and the broadcasters. The application process for the license can be complex and time-consuming, but with the right preparation and guidance, it can be successfully navigated.