FM radio licences for 100 cities will soon be up for
grabs. The Centre will initiate the process of
distribution of licences in the next two months.  
  
Sources in the information and broadcasting (I&B)
ministry said: “The government did not receive bids
for 57 licences in the second phase, which was over
nearly four months ago. Also, 23 successful bidders
have surrendered their licences as the existing laws
do not permit anyone to control more than 15 per cent
of the total allotted FM frequencies. Above all, we
will auction fresh rights for FM business in 20
cities.”  
  
According to the regulations, no company can hold more
than 15 per cent of the total FM licences. This in
effect means that one company can get licences for
only 45 stations.  
  
The second phase of bidding for private FM radio
witnessed the government selling about 280 radio
stations across 91 cities, collecting revenue to the
tune of Rs 1,100 crore.  
  
The process also saw aggressive bidding by almost all
players after the government decided to go in for a
revenue share regime as against the licence fee
structure of the first phase, which took place five
years ago.  
  
It had been earlier planned that bidding for the third
phase would begin in 2007. “With the second phase of
FM licence distribution giving such a lift to the
sector, the I&B ministry is going ahead with the third
phase when the interest is high,” said sources in the
industry.  
  
Players such as Times Group, Sun Group, Music
Broadcast and Radio Mid-Day have expanded their
network and new players such as the Anil
Ambani-controlled Adlabs Films and HT Music and
Entertainment have entered the FM space.  
  
Even foreign companies started picking up stakes in
Indian entities after the government recently allowed
20 per cent foreign direct investment in the radio
space.  
+++++++++++++++
Source:http://www.business-standard.com/common/storypage_c.php?leftnm=10&autono=93832
+++++++++++++++
Jaisakthivel,
Chennai,
www.dxersguide.blogspot.com
+++++++++++++++

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