New policy awaited to boost FM

ASHISH SINHA
Posted online: Saturday, June 25, 2005 at 0059 hours IST

NEW DELHI, JUNE 24: What would be the way forward for private FM radio inIndia? The question has been bothering the industry for a while as it seesits revenues dip with no solution in sight.Pending cabinet's apporval are Trai's recommendations on the implementationof Phase-II of FM in India, as envisaged in the Tenth plan, which talksabout expanding the FM umbrella cover to 60% population of India."A lot of the success of Phase-II will depend on the policy measures. A goodpolicy will almost certainly give a boost to the industry. A bad policy onthe other hand may lead to a repeat of history of radio may never attain itsopportunity," cautioned Prashant Panday, COO, Radio Mirchi.Trai, while consenting with the findings of Dr Amit Mitra committee on RadioBroadcasting, has recommended that the existing license fee structure wouldbe changed to one with a one time entry fee and a revenue share of 4% ofgross revenue.Inclusion of news and current affairs as content on private FM, was anotherdemand of the industry.Trai in its report has said: "...Coverage of news and current affairs shouldbe reviewed. These restrictions should be lifted once the securityimplications of this step are adequately addressed..." "News will increasethe scope and reach of FM by several folds. We will get listnership by'appointment', which would bring in more advertisers too," senior Radioprofessional said.Currently, the radio ad-spots are sold in the range of Rs 500 to Rs 1,500per 10 seconds and there aren't too many takers for the medium. Concurs CVLSrinivas, managing director - MAXUS, India & Asia Pacific. "Not too manyadvertisers have utilised the power of radio as a medium but you can't blamethem.
"http://www.financialexpress.com/fe_full_story.php?content_id=94753