FM Radio Industry

The following are the issues concerning the private FM radio industry:

Immediate:

The radio companies have paid the first year licence fees for the cities of Delhi, Kolkata and Chennai on August 29, 2002. The common transmission facilities (being executed by Prasar Bharati subsidiary BECIL) is still not ready. In the interim, heavy expenditure is being incurred in maintenance of facilities already made (like offices and studios) and salaries to employees.

The request (already made to the Hon'ble Minister formally) is that the operationalising date of the licence fees already paid should be March 31, 2003 or date of commencement of services whichever is earlier.

The licence fees for Delhi, Kolkata and Chennai are Rs 7.12 cr, Rs 1 cr, Rs 3.33 cr respectively for each licencee.

Short term:

1. A FM Broadcasting Policy needs to be framed at the earliest.

2. The new norms for the Phase II auctions to be announced, and whatever is applicable to Phase II should be applicable to Phase I.

3. Settlement of the court cases to free the vacated frequencies.

4. News and Current affairs to be allowed.

5. Technical specifications of the infrastructure should be reviewed to reduce costs while not compromising on quality of service.

6. Multiple ownership of stations in a single city to be permitted with a ceiling.

7. To be accorded Infrastructre Industry status - as radio is for the masses, and almost 100% of the equipment is procured from overseas.

8. Revenue share regime instead of fixed license fee regime.

Radio Mirchi