Union Cabinet gives nod to the Phase III Radio auction
Recently, the Union Cabinet approved the phase-III auction of FM radio channels. The Cabinet which is directed by Prime Minister Narendra Modi also approved migration (renewal) of private FM Radio licenses from Phase-II to Phase-III in 69 existing cities for 135 channels on payment of migration fee according to the Telecom Regulatory Authority of India’s (TRAI’s) recommendations.
The statement says that revenue of Rs. 550 crore will be added to the exchequer on successful auctions of all proposed channels. More importantly, it will help to decide on the market price for new frequencies under Phase III, which is linked to the migration fee as per the TRAI formula.
Currently there are 243 private FM channels operating in 86 cities spread across 26 states and three Union Territories.
The roll out of the first batch of FM Radio Phase III auction will provide more channels to listeners with richer content in 69 existing cities, the statement added.
Harrish M Bhatia, CEO, MY FM said "Great news and way to go, good days ahead and time for the industry to take radio to the next level of growth."
Vineet Singh Hukmani, MD, Radio One said, "We are happy with the announcement and hope that partial auctions will be done quickly to then allow migration of existing players as per the TRAI formula. The govt has just ensured that India earns 2000 cr from FM radio this fiscal and now MIB must ensure it sticks to the timeline to prevent loss to exchequer."