Regulators

Government not averse to FM radio revenue sharing

NEW DELHI: The government today indicated that it is open to a revenue sharing model to help migrate the existing FM players into a new regime.

According to an I&B ministry official, it is being examined whether under a new regime a revenue sharing formula would be better or having a low entry license fee.

"As per a proposal that the I&B ministry will be circulating to other ministries for feedback next week, it has to be seen which of the options are feasible to pave the way for the opening of the second phase of FM Radio."

The official added that the revenue shared percentage as suggested by the sector regulator (four per cent) seems to be on the lower side, which would effect government revenue collections.

 

 

The I&B ministry is also seized of the issue as to how to tackle the legal cases pertaining to the first phase of FM Radio privitasation. Several companies including Zee Telefilms and the Ambani's backed Observer group had moved the court on various grounds after they had successfully bagged licenses for FM Radio during the first phase.

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