TRAI, the telecom sector regulator, has recommended an increase in the foreign investment ceiling in FM radio from 20% to 26%.

It has made a new distinction between local cable operators and their state and national level counterparts with a proposed cap of 26% for FDI in local cable against the existing 49% and recommended a 74% for other cable operators.

TRAI has retained its former proposal of 2008 of raising the FDI sector cap for national or state level cable TV firms, Multi-System-Operators (MSOs), Direct-to-Home services and Mobile TV to 74%.

It has also proposed that the foreign participation should be restricted to 26%, and that FDI beyond this level be permitted only after government approval.

The reason behind this, as put by TRAI, is limiting the FDI for FM radio to 26% will bring it at par with the present cap for the print media and news channels. This is the first instance that TRAI is calling for lowering the existing FDI limits.

Resultantly, TRAI has been accused of 'bias' by the Cable Operator Federation of India (COFI), who has to say that TRAI has done this to please DTH companies, most of whom are telecom companies.