The Union Cabinet approved the proposal of Ministry of Information & Broadcasting to issue policy guidelines for Headend-in-the-Sky operators very recently. According to the framework of the policy guidelines, the HITS Service providers have to provide services in the country. The policy is not mandatory for either the cable operators or subscribers to essentially attain signals from a HITS platform/network, the subscribers and cable operators can continue with the existing system as well. Hence the cable operators have an option and liberty to switch over to HITS provider network if required. This is how it is different from the areas notified for CAS (Conditional Access System) which is compulsory.

HITS provide the signals through satellite to many Multi System Operator (MSO)/cable operators, who can further send the signals to the customers using their network. When you look out the difference between a HITS operator and a Multi System Operator (MSO), HITS transmits the channels to the cable operators via satellite, whereas the MSO does the same through cable.

HITS is a digital delivery mode of distribution of TV channel to speed up the process of digitalization of cable services located in Non-CAS. HITS is a technology for subscriber with a wide choice of digital channels, better picture quality and value added services at reasonable price.

The policies which have been approved by Cabinet are as follows:

• Regulatory environment for HITS operators. The guidelines are far-reaching and provide for complete procedure for obtaining permission and conditions there to.
• HITS services are allowed in both ‘C-Band’ and ‘Ku-Band’ as well.
• HITS operators can uplink from Indian soil only and will have to install SMS and encryption system.
• Signals directly to the subscribers are not permissible. 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 to this FIPB approval will be required if the FDI 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.
• All those who fulfill the terms and conditions and are eligible can opt 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.