WorldSpace India’s Audio Retail Plans Facing Trouble from DIT

WorldSpace India seeks to launch paid webcasting services for international listeners through its website www.worldspace.in. Through this venture, the satellite radio company hopes to earn revenue in foreign exchange. But the existing FDI policy in the information technology sector might foil its plans.

Department of Information Technology (DIT) has raised objections to WorldSpace India's proposal, citing prevalent foreign investment regime in e-commerce.

The DIT is of view since the end-consumer will have to pay to listen to the music, WorldSpace will be selling an online service/music. In this regard, DIT has classified WorldSpace India's proposed webcasting service as business to consumer (B2C). The present FDI policy framework in case of e-commerce allows companies to engage only in business to business (B2B) activities and not in retail trading, or B2C activities.  As has been reported by a leading daily, Financial Express.

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