The Cabinet on Friday gave its nod for phase-III auctions of private FM radio channels. It also cleared migration/renewal of licences from Phase II to III for 135 channels in 69 cities.
There are currently 243 private FM radio channels in operation across 86 cities, from the first two phases.
The migration or renewal will be done on payment of a fee determined through a TRAI-recommended formula, which bases the fee on market prices discovered through the phase III auction.
“The rollout of the first batch of FM Radio Phase III auctions will provide more channels to listeners, with richer content in 69 existing cities,” said the official statement. The auction will be conducted on an ascending e-auction basis.
“This paves the way for the smooth conduct of auctions and heralds a new era in the FM landscape,” said Apurva Purohit, CEO, Radio City 91.1 FM. “The Cabinet giving the go-ahead means that the Phase-III rollout, which has been delayed for more than two years, can finally happen this fiscal year.”
Nisha Narayanan, COO, 93.5 RED FM, said: “This announcement comes at a crucial time as some licences of key players were expiring on March 31 and needed to be renewed.”
Details awaitedRadio companies are now waiting for more details on the tender process for the auction, which is expected to help the Government earn over ₹550 crore, and garner additional revenue from the migration process.
Vineet Singh Hukmani, MD of Radio One, said the Government is expected to earn ₹2,000 crore this fiscal year through the auction and migration process.
Industry executives said that in the first phase, leftover frequencies from Phase II would be auctioned.