The Hindu Business Line : FICCI seeks changes in FM radio policy

THE radio industry is seeking some more changes in the recently announced policy for the sector that includes changing the net worth criteria to paid-up capital requirement, permitting mergers and acquisitions after three years of operation instead of five, and allowing airing of news and current affairs programmes on a pilot basis.

A FICCI delegation today met the Information and Broadcasting (I&B) Minister, Mr S. Jaipal Reddy, to discuss some possible changes in the guidelines.

It has said that the eligibility criteria make it possible for only one company in a particular group to bid for the available frequencies all over India.

This would result in difficulties in implementation as a group company could be operating through different individual companies in different areas.

"Therefore, it has been suggested that the eligibility criteria should be applicable for a group and not on individual companies within the group.

"However, the group as a whole should not be allowed to hold more than one licence per city and/or more than 15 per cent of the total available frequencies," said FICCI.

The chamber has suggested that the net worth requirement be changed to paid-up capital requirement, as it would become very difficult to adhere to the net worth requirement for existing companies that have suffered heavy losses.

It has also suggested changes in calculating the reserve one-time entry fee (OTEF) to ensure that smaller players eligible to apply for licences.

The FICCI has said out that the growth of a robust radio industry will depend on mergers, acquisitions, and strategic tie-ups.

"The Government should encourage this and the period of such events taking place should be three years from the date of operationalisation, instead of the proposed five years."

On airing of news and current affairs programmes, the FICCI has urged the Government to consider broadcasting them on a pilot basis in certain select areas for a period of one year.

It has also sought permission for usage of brand names or owner's name or corporate group names for FM services.

It has also said that co-location of towers with AIR/DD should not be mandatory and should be the choice of the operators.

This would not only save the cost already incurred by the existing operators in some of the cities but also allow them to choose their cost-effective option.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page