A number of FM radio brands, such as HT Media (Fever FM), TV Today (Oye FM), Mid-Day (Radio One), India Today Group and Music Broadcast (Radio City), among others, want the government or Prasar Bharati to foot a bill of around R800 crore if it wants to accept the recent recommendations made by the telecom and broadcast regulator.
But the move should not delay the third-phase rollout of FM radio (FM-III) which will see 839 new FM stations across 280 towns, these operators said. Also, the five operators in their individual capacity want government assurance that if they accept Trai recommendations, it should increase their respective 10-year licence permission accordingly, else the move will adversely impact the valuation and market share of existing players.
This happened after the Telecom Regulatory Authority of India (Trai) batted for a 50% reduction in the minimum spacing between two adjacent FM stations in the name of having more FM stations within a city.
However, this move was against the collective view of most private FM radio broadcasters who had opposed it at all levels of the consultation process initiated by Trai in December last year.
Trai has recommended reducing the channels separation between adjacent FM stations from current 800 kHz to 400 kHz to make space for additional FM stations in every city. However, the radio broadcasters feel the move will not only delay the much-needed rollout of third-phase expansion of private FM radio in the country (FM-III), but will also be a costly exercise.
“We will tell the government that most radio operators cannot pay for the new infrastructure needed to align with the Trai recommendations. If they want, Prasar Bharati or any government body can pay for the new towers and infrastructure. Most of the operators feel the same,” Vineet Singh Hukmani, MD, Radio One, told FE.
“This is a theoretical exercise by Trai which is yet to get tested in Indian conditions. Despite our opposition, Trai has recommended this, which will have an adverse impact on us,” he said. According to experts, if Trai recommendations are accepted, then FM-III rollout will be delayed further as fresh frequency allocation will require renewed Cabinet nod. “Most radio companies are desperate to see FM-III come up at the earliest. Their viability and business growth depends on it. Reworking frequency allocations in 200 towns and executing it is a mammoth task,” said a senior executive of a leading media consultancy firm.
At the consultation phase, Trai’s suggestion of reducing minimum channel spacing did not find support from companies like HT Media, TV Today, Mid-Day, and Music Broadcast, among others. Only ENIL’s Radio Mirchi, the radio arm of Times Group, had supported the move, citing expansion of FM radio revenue pie and diversity of content to radio consumers. Rival FM operators had cited cost escalation, devaluation of current radio business and negative impact on the quality of sound of current stations as the reasons for not supporting the move.
“The frequencies for FM Radio channels, within a licence service area, may be released with a minimum spacing of 400 KHz,” Trai said in its recommendations last week.
Trai’s recommendation virtually means reworking of the frequency allocation plan for FM radio within 88-108 MHz bandwidth as it will reduce the channel-spacing between two allocated FM stations from 800 KHz to 400 KHz. Currently, say, between 100 MHz and 103 MHz, there can only be four FM stations at 100, 100.8, 101.6 and 102.4 MHz, respectively. By reducing the spacing to 400 KHz, the number of FM stations will go up to eight.