| Promises,
more promises, and no action. That is what the private FM radio operators felt
as the government blanked out any reforms in 2009 that would have fuelled growth
in the sector. Want
Phase III expansion? Wait for 2009. Want a hike in foreign direct investment (FDI)?
Will take time to study the Trai recommendations. Want to broadcast news? Can't
tell now. Private
FM radio operators, though, go into 2010 with a lot of hope that the door will
open for more liberal policies. They don't forget the words of Information and
Broadcasting Minister Ambika Soni at the World Economic Forum's India Economic
Summit in November 2009: that a note is being finalised for the Cabinet to recommend
an increase in FDI limit and allowing Akashvani-sourced news on private FM radio
channels. The
Phase III of FM radio expansion policy, deferred due to certain issues including
multiple frequencies and royalty for music, is expected before the fiscal ends.
It will cover 92 cities, according to the plan drawn up by Trai.
A massive
infusion of capital will be required as the national footprint expands into smaller
towns. Trai has recommended that the FDI be hiked from 20 per cent to 49 per cent,
but the government is yet to confirm on this. Funding will continue to hound the
sector if the government does not spell out more liberal policies in 2010. The
government is particularly not happy with the slow growth of community radio.
"Community radio can change the face of local broadcasting. But the growth
in this segment is disturbingly slow despite adopting a painless procedure for
obtaining licences to operate community radio stations," says a senior I&B
official. The
government is organising consultation workshops in different parts of the country
to increase awareness of the advantages of local radio stations. Beginning with
Rajasthan (Tilonia) in November 2009, a series of workshops have been held in
Meghalaya (Shillong), Haryana (Faridabad), Madhya Pradesh (Chanderi), and Tamil
Nadu (Tiruchendur) before the year closed. A
workshop had also been held earlier this month in Kerala (Wayanad), while four
others planned so far are in Karnataka (Budhikote), Maharashtra (FTII in Pune),
Uttar Pradesh (Allahabad), and Uttarkhand (Tehri Garhwal) before the end of this
fiscal. A
total of 48 Community Radio Stations are presently functioning in 16 states and
Union territories (42 from educational institutions and six from non-governmental
organisations). Twenty letters of Intent have been issued in 2009, taking the
total to 189 LoI so far. A total of 584 applications, including 240 applications
from educational institutions, have been received from various organisations for
setting up CRSs. While 79 had been rejected, a total of 316 applications are under
process.
The game-changing year for FM radio could be 2010. Says ENIL chief
executive officer Prashant Panday, "I am quite sure that 2010 will be known
as the year of radio. Phase III policy of radio reforms will come. And by 2011,
the radio industry could start offering a serious alternative to regional print
publications." | 
