Vague radio regulations put India’s only radio station in fix

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A lack of clarity on the regulatory status for satellite radios in the country has put WorldSpace, India’s first and only satellite radio station in a fix. The only source of revenue for WorldSpace as of now, is subscription, but in the modern age, this alone cannot help sustain a media firm’s profitability. Media firms rely heavily on advertising too.

WorldSpace is possibly looking at advertising as a source of revenue, but the firm does not have a licence since there are no proper guidelines for the sector. M Sebastian, managing director, WorldSpace has also shown interest in carrying regular FM channels on WorldSpace, but there are regulatory hurdles there too. Blame it on the nascent satellite radio sector or the regulations, the company is suffering from an identity crisis. WorldSpace, that has always positioned itself as a service provider, has applied with the Telecom Regulatory Authority of India (Trai) for the status of ‘terrestrial repeaters’ or a regular private FM channel.

However, there are a number of regulatory issues here. First, the policies that govern satellite radio channel and terrestrial FM channels are different. Second, unlike terrestrial FM broadcasters, WorldSpace does on sell space for advertisement. Its primary revenue is generated through subscription. Current FM players are saying that if WorldSpace is successful in getting the status from TRAI, then all norms, including the hefty license fee, FDI regulations, auction and bidding that govern private FM stations should be similar for WorldSpace as well.

Regarding carrying regular FM channels on WorldSpace, there are regulatory obligations, especially regarding networking. For example, a same radio station can have three radio channels in Mumbai, Delhi and Bangalore with local tailor-made programmes to suit the local audiences and advertisers.