Indian government considering tax relaxation on IPTV hardware

To advance the provision of a wider choice to consumers, representatives of the IPTV India Forum have been informed that the government’s Planning Commission will soon initiate the process of consultation between different ministries.

The commission, in its document on digital television, has envisaged expansion of digital television to the entire country in phases beginning in 2008. IPTV will also be part of that plan.

A step in that direction has already been taken with Telecom Regulatory Authority of India (TRAI) issuing a consultation paper on IPTV and confirming that broadcast content would be regulated by the Information and Broadcasting Ministry.

The ministry, on its part, has included IPTV in the Broadcast Regulation Bill, 2007, to provide a level playing field for IPTV service providers with cable television and DTH service providers.

In a presentation to the commission, the IPTV Forum promised IPTV service at a highly affordable price for viewing channels on personal computers and mobile handsets. Like Conditional Access System, IPTV will be available through a set-top box but it will allow the flexibility to shift from television to computer mode instantly.

During the presentation, the forum said that consumers would be able to watch television and work on their personal computer simultaneously, and all this would be available through a single broadband connection. For mobiles, the consumer will have to subscribe to the service.

The forum has said that standardisation of the interface and protocols are necessary to promote competition and ensure affordability and convenience. Issues related to the quality of service and tariffs should also be handled in the respective licensing regimes.

The commission has clarified that the government will sort out the regulatory issues by end of this year.

The market for IPTV in India is expected to grow from 10 million connections in 2007 to 20 million by 2010.

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