New Delhi: It was like a New Year's gift to the FM Radio private operators. After a considerable wait, they have just been allotted frequencies for operating their respective FM radio services. Although FM operators had applied for frequency allocation to the Wireless Planning and Coordination Committee (WPC) in the Communications Ministry just after paying their bank guarantees in October 2000, the government issued letters to FM operators only in the first week of January 2001. The letters specified the frequencies allotted to each player.The frequency allocation is a step forward in setting up the FM business for private operators, says Mr Nishchind Chawla, CEO, Radio Mid-Day (North). Now, the operators will come together to form consortiums to set up transmission towers across the country, he says. Only after the formation of the consortiums will the government allot the operating licences, adds Mr Chawla.
But having finally bagged the frequencies, the lack of which had till now turned many of the players sceptical about the private FM scenario, the radio operators appear more confident now. Says Mr G Krishnan, Executive Editor, TV Today, and head of the FM Radio unit for the group: ``The broadcasters who have paid their first year's licence fee (bank guarantee) will meet this week to chalk out the future course of action.'' And Mr Krishnan states that if things go as planned, the FM broadcasting business by private operators will be up and running by September 2001.
Right now, the FM players have two options before them, says Mr Krishnan. One, to use the transmission tower of the All-India Radio by paying it a fee. And two, to set up a common tower for all the private operators of a particular region. The second option may also lead to an infrastructure company setting up the tower for the FM operators, whereby they'll pay a fixed tariff of around Rs 70-80 lakh to that company.
The upcoming meeting of broadcasters will be relevant because it will give an indication as to what option the FM operators are in favour of in terms of transmission tower infrastructure. The decision on the modality of a transmission tower will depend on the cost and viability of the project, according to industry sources.
So far, 16 companies have paid up bank guarantees (first year's licence fee) amounting to Rs 158.75 crore to the government. Some others are likely to join the FM fray after the ongoing legal tangles involving the government and a few private companies are sorted out.
Among those who have been allotted frequencies for the FM radio service are the Mid-day group (North, West, and South); Ispat group's Music Broadcast; Living Media's Radio Today and Bennett Coleman's Entertainment Network.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
