Dish TV is the largest licence fee payer in India among DTH operators. According to a MIB release Dish TV paid Rs 14,69,60,763 as licence fees during 2007-2008. Tata Sky ranks second after Dish TV which paid Rs 13,10,28,968 as DTH licence fees during 2007-2008.
Government has been receiving revenue in the form of annual license fee paid by DTH service licensees as per Article 3 of the schedule forming the terms and conditions of license agreement for DTH services.
As per the terms and conditions of license, a DTH licensee has to pay an annual license fee equivalent to 10% of its gross revenue in a particular financial year within one month of end of that year. Clause 3.1.1 of terms and conditions of license defines gross revenue, while Form ‘D’ prescribed under Clause 3.1.2 of the terms and conditions of license prescribes indicative and illustrative items to be included, but the Auditors are required to include all the income heads qualifying for gross revenue whether or not specifically included in Form ‘D’. Carriage fee collected and revenues earned from hardware are required to be included as part of Gross Revenue.