Direct-to-home (DTH) service providers Tata Play, Airtel Digital TV, Sun Direct and Dish TV have been audited by an Indian controller and general auditor (CAG), according to the Economic Times. The report mentions that the Center asked for a special audit of these service providers over the age-old license fee dispute.

According to a report by the Economic Times, the Union Ministry of Information and Broadcasting (I&B) wrote to the CAG of India requesting an extensive audit of all DTH service providers going back to their inception year or when a license was granted by the government. It adds that the traffic was initiated because some discrepancy in the calculation of revenues by these companies was suspected.

The I&B Department has asked the CAG to conduct this special audit to ensure that the amount paid to the government in the form of the license fee is correctly estimated and collected, according to the report. This development came after DTH service providers asked for a license waiver in May, citing a decline in subscribers over the years. The report confirmed that the audit will cover Big TV / Independent TV and Videocon’s D2H TV.

These DTH service providers have to pay part of their revenues as license fees to the Center, the fees for which the waiver was requested as mentioned earlier. This amount is set at 8 percent of the annual gross revenue recorded in the company’s audited accounts, the report adds.

Revenues from DTH subscription fees, commercial TV services, FM radio, etc. are expected to exceed Rupee 1,000 crore in FY23, the report said.

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