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The Empowered Group of Ministers (EGoM), which is currently looking into the auction of 2G spectrum, will also oversee the process of Phase-III auction of FM radio services, according to sources.
The Ministry of Information and Broadcasting had earlier asked for the constitution of an EGoM to govern the third phase of auction of FM Radio, especially after the Telecom Regulatory Authority of India came up with new recommendations in April.
The regulator had recommended reduction of inter-channel spacing to 400 KHz from the existing 800 KHz, which is expected to double the number of FM frequencies to be auctioned, if accepted.
This proposal was not part of the initial nod that the Cabinet gave for the phase III auction of FM Radio last year. Ministry officials believed a dedicated EGoM could ensure faster approvals on various issues concerning the third phase auction of FM Radio frequencies.
The EGoM, led by Finance Minister P. Chidambaram will take a decision on TRAI’s recommendations, besides other issues. It will also approve the changes in ‘Request for Proposal’ for selection of e-auctioneer for carrying out the ascending e-auction.
The EGoM will decide on the migration fee chargeable from players who migrate from FM Phase II licences to FM Phase III licences, besides other issues that concern the auctioning and licensing process under FM Phase III expansion.
The Government had earlier finalised auctioning of 839 FM channels across 294 towns in the phase III auction covering all cities with the population of one lakh and above. The Ministry had estimated that auctioning of these radio frequencies would help the Government earn over Rs 1,700 crore.
According to the approved policy of Phase III, the reserve price for new channels in existing FM Phase II cities will be the highest bid received in that city in Phase II.
In new cities, the highest bid received in Phase II in that category of city in a region will be considered as the reserve price.
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