Trai nod for private FM to air news

Corporate Bureau
Posted: Saturday, Feb 23, 2008 at 0006 hrs IST
Updated: Saturday, Feb 23, 2008 at 0025 hrs IST

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New Delhi, Feb 22: Broadcasting regulator Trai has favoured private FM radio stations to broadcast news, which is currently prohibited. In its recommendations to the information and broadcasting ministry on Thursday, on modifications to be incorporated in the policy guidelines for FM Radio Broadcasting phase-III, Trai has also suggested that foreign firms, including the institutional investors, be allowed to invest more in the FM radio companies by favouring that the foreign direct investment (FDI) cap for FM radio broadcasting should be increased to 49% from the current 20%.

However, FM radio operators interested in airing news would have to restrict FDI at 26% from the current 20%. This is in line with the regulations for FDI in other news media like print and TV. Another rider put by Trai is that FM radio operators can source news only from authorised news agencies like AIR, Doordarshan, authorised TV news channels and news agencies instead of generating the same through in-house sources. Welcoming the move, Ismail Dabhoya, vice president, finance-commercial, BIG 92.7 FM of Reliance ADAG, said, “With this, content on radio will become far richer. It is clearly a move in the right direction.”

Another recommendation that may remove barriers for consolidation and fuel further growth in the sector relates to a change of the unit for private FM Radio broadcast licensing from city to district. This will enhance the area of operations of FM Radio broadcasting to larger geographical area and reduce operation cost for broadcasters.

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