Regulatory Shot Ready For FM Radio

[icernet-admin at listserv.cddc.vt.edu]

108 FM radio frequencies (VHF: 87-108 Mhz) across 40 cities (divided into
five categories) were put up for open auction bidding in May 2000. In a
blitz of optimism, 101 bids were received for Rs 425 crore. Later, 64
bidders defaulted and the actual collection was Rs 158 crore for 37
frequencies. Of these, 24 became operational (2 have deemed status, pending
commercialisation of actual broadcast). FM players have claimed that licence
fee as a percentage of revenue/ expenditure hasn't worked out for them. For
example in Delhi and Mumbai, licence fee is 234 per cent of revenue and 59
per cent as a percentage of expenditure. Both Mitra and Trai have prime
facie accepted these numbers. The working group of the information and
broadcasting sector for the Tenth Plan has cautioned against treating FM
radio as a source of revenue. FM presently covers 30 per cent of the
country's population. The Tenth Plan aims to take this number to 60 per cent
with a thrust on private participation and replacing the existing system
with revenue sharing.

Source:
http://www.financialexpress.com/fe_full_story.php?content_id=58345