New Delhi: People in tier-II and tier-III cities, having a population of more than 1,00,000 people, will be able to listen to FM-based radio stations as the much-awaited launch of FM phase-III auction is likely to commence soon.
The e-auction for proposal allows 839 radio channels to come up in over 200 cities across the country and is likely to commence before the end of the present fiscal year.
The much-delayed proposal has been stuck since the UPA 2 era despite the Union cabinet’s nod for FM Phase III expansion in 2011.
Subsequently the industry raised its concerns which were discussed and Trai was asked to give its recommendations.
The industry had feared that the auction method could put heavy financial burden on the new radio stations. It is understood that the auction of 839 new radio stations in the country is expected to help the government garner revenues to the tune of over Rs 1,500 crore.
The phase I and phase II of FM station auctions had led to total revenue accrual of about Rs 1,733 crore up to May 31, 2011 from one time entry fee, migration fee and annual fee.
After the 839 new FM radio channels are auctioned all cities having a population of more than 100,000 people will be covered by private FM radio services.
Presently 86 cities are covered by FM radio stations, sources stated. One of the changes proposed by the I&B ministry was a change in the licence fee, which was linked to the percentage of total revenue generated as in the case of telecom licences.
The Ministry said this model should not be followed as the revenues in the case of radio stations are lower.
