The Hindu Business Line : TRAI paper on FM radio seeks views on contentious issues

THE broadcast watchdog has reopened the debate on switching from the existing license fee regime to a revenue sharing arrangement for private FM radio companies. It is also seeking views on permitting private FM radio companies to air news and current affairs programmes and allowing them to hold multiple licenses

The Telecom Regulatory Authority of India (TRAI) has released its first Consultation Paper on FM radio privatisation today, which seeks views on various contentious issues relating to the industry. A Committee headed by Dr Amit Mitra, Secretary General of the Federation of Indian Chambers of Commerce and Industry (FICCI) had earlier submitted its report to the Information and Broadcasting (I&B) Ministry. Subsequent to the appointment of TRAI as broadcast regulator, the FM privatisation report was passed on it.

The Consultation paper has also initiated a discussion on whether licences should depend on what kind of content the licensee may carry and whether the licence is city-wise or on a regional/national basis.

It also raises issues of whether the present licence period needs to be changed and a roll out obligation be stipulated for service providers to expand coverage of radio services from the present 30 per cent population coverage to 60 per cent by the end of the Tenth Plan. The paper also wants stakeholders to examine the need for instituting a fund for improving roll out and promoting niche programmes and the need for a programme code separate from the existing AIR code.

It also seeks a discussion on whether broadcasters in the same city and the same entity broadcasting in different stations be permitted to network or not and also whether a penalty should be imposed on non-operationalisation of licence.

In its statement, TRAI has noted that the first phase of licensing did not yield desired results in proliferation of FM radio in the country since out of 40 cities and 108 frequencies, services started only in 14 cities.

Meanwhile, the TRAI is also examining the accounts of phase one licensees, it said, adding phase one licensees have been given an option to defer their next instalment of dues till after the Government takes a final decision on the privatisation process.

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