Monday 19 January 2015

Cabinet approves Phase III of FM radio auction

The government has cleared a proposal for auctioning Phase III of FM channels, which is expected to fetch revenue of Rs 550 crore to the exchequer. Besides, the cabinet also approved the migration (renewal) of private FM radio licences from Phase II to Phase III in 69 existing cities for 135 channels. These channels will have to pay a migration fee that will be calculated by categorizing the cities on the basis of the number of FM channels available there.
As of now, with the implementation of two phases of private FM radio, namely phase I (1999-2000) and Phase II (2005-06), there are 243 private FM channels in operation in 86 cities of the country, spanning 26 states and 3 Union Territories.
The auction process that is expected to add estimated revenue of over Rs 550 crore to the national exchequer would also help realize the amount through the migration process which is dependent on the TRAI recommended formula, where migration fee is linked with the discovery of market prices through the FM radio phase III auction.

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