The Union Cabinet today approved the proposal of Ministry of Information & Broadcasting to issue policy guidelines for Headend-in-the-Sky operators. The policy guidelines provides for a framework within which the HITS Service providers has to provide services in the country. The policy does not mandate for either the cable operators or subscribers to necessarily obtain signals from a HITS platform/network, the subscribers and cable operators can continue with the existing system. Hence the cable operators have liberty to switch over to HITS provider network if so desired. Thus it has a basic difference from the areas notified for CAS (Conditional Access System) which is mandatory.

HITS serves the whole country providing its signals through satellite to many Multi System Operator (MSO)/cable operators who can further send the signals to the customers using their network. The essential difference between a HITS operator and a Multi System Operator (MSO) is that the former transmits the bundle of channels to the cable operators using a satellite, whereas the latter does the same through cable. HITS is a digital delivery mode of distribution of TV channel and it would speed up the process of digitalization of cable services located in Non-CAS areas of the country. HITS would not only help increase the penetration of cable market further into rural areas where it has been absent because of unviability but will also help in further reduction of prices of set top boxes and will also lead to further consolidation of the cable market.

HITS would help a subscriber with a wide choice of digital channels, better picture quality and value added services at affordable price. HITS would provide greater channel capacity from the present limited capacity of channels placed in prime/non prime band. Salient features of the HITS policy approved now are :-

• It provides for an enabling regulatory environment for HITS operators. The guidelines are exhaustive and provide for complete procedure for obtaining permission and conditions thereto.
• HITS services are allowed in both ‘C-Band’ and ‘Ku-Band’.
• HITS operators can uplink from Indian soil only and will have to install SMS and encryption system.
• They are not permitted to provide signals directly to the subscribes. However, if HITS operator is also MSO/Cable Operator, he can do so through his distribution network.
• Total direct and indirect foreign investment including FDI is allowed upto 74%. Prior FIPB approval will be required if the FDI in beyond 49%.
• The cross media holding restriction of 20% of total paid up equity has been prescribed for various segment of broadcasting services. These restrictions have been provided to avoid vertical integration and to promote competition.
• There is no restriction on number of permissions. All those found to be eligible and fulfil the terms and conditions can apply for license to the Government in the Ministry of Information & Broadcasting.
• Existing permission holders of HITS will have to comply and migrate to new policy regime within three months failing which their permission shall be cancelled.
• Sufficient provisions exist under the guidelines for monitoring of content, inspection and national security related issues etc.

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