For the purposes of migration to the new regime, 24th July 2003 (the day of appointment of this Radio Broadcast Policy Committee) shall be taken as the "Cut-off Date" from which the rights and obligations under the new regime will be applicable to the players. Rights accrued and Liabilities incurred till the Cut -off Date shall be governed by the old regime.


The Committee is of the opinion that operationalisation of license or at least a serious attempt at operationalisation should be the criterion for distinguishing between serious licensees and not so serious ones. Therefore, the following should be entitled to migrate to the new regime:


a. Successful bidders that have operationalised the license and have paid the license fees till date. From the cut off date all fees paid shall be adjusted (but not refunded) against the new system of revenue share.


b. Successful bidders that operationalised the license but later due to non-viability of business defaulted in payment of license fees.


i. They will have to pay the original license fees due till the Cut off Date.

ii. Defaults in the original license fee that was to be due, after the cut off date, are to be ignored.

iii. Payment will be treated as one time entry fee.


c. In case of delay in operationalisation due to co-location, those who are operating under "deemed operationalisation", should be granted a revised deadline, either to co-locate by say December 31, 2003 or set up independent facilities by say March 31, 2004. On completing either of the above, they shall be entitled to migrate to the Phase II licensing system. Till the point of operationalisation, they will be governed by the old regime.


The Committee strongly recommends that there should not be any blacklisting of bidders for new licenses on the basis of their default in Phase-I, as the Phase-I was characterized by acute market and regulatory imperfections that rendered the market unviable. Also, the Committee appeals to all bidders who have gone to court to withdraw their litigations and take advantage of the new Phase II regime.

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