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Trai issues paper on FM radio privatisation

April 14, 2004 14:12 IST

Lifting restrictions on airing news and current affairs, permitting licensees to own multiple licences, co-location and migration of phase one licences into phase two are among a host of issues the broadcast regulator Telecom Regulatory Authority of India has put up in its first consultation paper on FM radio privatisation on Wednesday.

These and several other issues related to the second phase of FM radio privatisation are to be debated upon by the industry and suggestions have been invited by Trai till May 7 this year, after which the regulator is expected to issue comprehensive guidelines on the matter.

The paper also takes note of several other contentious issues including whether licences should depend on what kind of content the licensee may carry and whether the licence is city-wise or on a regional/national basis.

Trai, which is also examining the accounts of phase one licensees, said phase one licensees have been given an option to defer their next installment of dues till the government takes a final decision on the privatisation process.

The consultation paper also raises issues like whether the present licence period needs to be changed and a roll out obligation be stipulated for service providers to expand coverage of radio services from the present 30 per cent population coverage to 60 per cent by the end of the Tenth Plan.

The paper also wants stakeholders to examine the need for instituting a fund for improving roll out and promoting niche programs and the need for a programme code separate from the existing AIR code.

Whether broadcasters in the same city and the same entity broadcasting in different stations be permitted to network and should there be a penalty on non-operationalisation of licence have also been raised. The regulator has also sought views on whether licences of the first phase be allowed to migrate to the second phase.

In its statement, Trai has noted that the first phase of licensing did not yield desired results in proliferation of FM radio in the country since out of the 40 cities and 108 frequencies, services started only in 14 cities.


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