In what could prove a big boost to India’s MVAS sector particularly pertaining to video content, the government has decided to hold a bidding process to auction licences for mobile TV services.

The move follows regulator TRAI submitting its recommendations.

Furthermore the successful bidders will be allowed to choose from any of the numerous technologies supporting mobile TV services. Existing Unified Access Service Licence (UASL) holders are not required to bid for the mobile TV licence.

“The methodology for grant of licence through closed tender system on the basis of one-time entry fee quoted by the bidders should be broadly based on the bidding process followed for licensing of private FM radio stations. However, the reserve entry fee for a particular licence area should be 50 percent of the highest financial bid submitted for the particular area,” says a government note on the issue.

The government has earmarked frequencies in the 585 MHz and 806 MHz band with each player allowed to have 8 MHz spectrum. The services will come under the purview of the Information & Broadcasting as well as DoT.

In India only sate-run Doordarshan offers mobile TV services. The government has allowed private service providers to share infrastructure with Doordarshan or any other player which has the infrastructure in place.

Successful players will have to pay an annual licence fee of 4% of overall revenues.