*Heard The News?* *
An AIR-brushed news slot will soon debut on FM radio*
Anuradha Raman, Outlook India Magazine - 17 Nov 2008
http://www.outlookindia.com/full.asp?fodname=20081117&fname=Radio+(F)&sid=1

First, the good news. With general elections around the corner, the I&B
ministry has finally given in to a long-standing demand of private FM
operators. That they be allowed to include news in their programme mix. In
its pure form, that would indeed be a landmark change, freeing up radio
news. Locally relevant or otherwise 'customised' news can harness the full
potential of private FM which, right now, deals almost exclusively in
lightweight entertainment.

However, the ministry's approval comes with a caveat that scotches this
prospect for the moment: the news feed will have to be from the government's
mouthpiece, All India Radio. Despite this, the move is being described by
many in government as a "masterstroke" by the I&B ministry. With 250
commercial FM channels on air currently, and another 700 waiting to go on
air later this year, what better medium to disseminate government-approved
news than the radio? Of course, it won't be binding on FM operators to
broadcast AIR news. Those who wish to can subscribe to the service. But with
most of the private players pushing for news and current affairs for the
last five years, including a bulletin is seen as a first step towards
independent news programming.

"We would be willing to accept news from any credible organisation the
government deems fit," says Uday Chawla, general secretary, Association of
Radio Operators of India. "Eventually, FM operators should be allowed to run
their own news channels with a well-defined content code governing them."

Despite the FM boom, both the NDA and UPA regimes have been cagey about
allowing news on radio even while allowing TV news channels to flourish.
Their rationale: radio news is far more difficult to monitor. The Union home
ministry, in particular, has been striking a cautious note on allowing news
and current affairs discussions on private commercial radio. Both FICCI and
the Telecom Regulatory Authority of India, incidentally, had recommended a
go-ahead for news on private radio.

The medium has come a long way since the government opened up the air waves
in 2000. At that time, 108 frequencies in 91 cities went under the hammer.
But given the complicated licensing structure, there were few takers. As a
result, only 22 radio stations took off in 12 cities. A government then
decided to ask the operators to pay only 50 per cent of the bid amount,
along with an irrevocable bank guarantee for the remainder. Since Phase I
bidding, it took two governments and a little help from TRAI to change the
rules and have a more equitable revenue-sharing regime.

Nearly 280 frequencies across India were allotted in '06. In phase three,
players are expecting more liberal licensing, allowing multiple frequencies.
This would enable one operator to start more than one channel for a greater
content differentiation in one city, but will also let them network across
cities, helping cut costs. Allowing news on FM is but the first step to all
this.
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