The Hindu : National : FM channels: Ministry against lifting of ban on news

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Saturday, Aug 14, 2004

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National

FM channels: Ministry against lifting of ban on news

By Our Special Correspondent

NEW DELHI, AUG. 13. The Home Ministry is not in favour of lifting the existing ban on news and current affairs on private FM channels.

In its preliminary response to the recommendation of the Telecom Regulatory Authority of India (TRAI) that news be allowed on private FM channels, the Home Ministry has communicated to the Information & Broadcasting (I&B) Ministry its apprehensions about accepting TRAI's suggestion in view of security considerations.

The Authority — which has been doubling up as a regulatory body for the broadcasting sector since January this year — had this Wednesday recommended that the existing ban on news and current affairs on private FM channels be reviewed by the Government and lifted after incorporating adequate safeguards. The I&B Ministry had earlier this year referred the report of the Radio Broadcast Policy Committee to TRAI as a preparatory exercise for the second phase of FM broadcasting in the country.

As of date, private FM channels are not allowed to carry news and current affairs programmes since the Government does not have the wherewithal to monitor each and every station across the country. And, again this is the main concern of the Home Ministry.

The Finance Ministry has also indicated to the I&B Ministry that it is not in favour of moving to the recommended new licensing regime consisting of a one-time entry fee and a revenue share of four per cent as it would amount to a loss of about Rs. 110 crores annually to the exchequer.

According to a rough estimate made by the Finance Ministry, the recommended regime would only yield Rs. 10 crores per annum in the best-case scenario.

"Such a loss of revenue is unacceptable," Ministry sources said.

Also, it was observed that the Government has no machinery to monitor the earnings of private FM stations. Even the Comptroller and Auditor-General cannot, according to the Ministry, review the earnings of private FM stations on a regular basis. Instead of switching to a revenue-sharing model, the Government would rather continue with the license regime but without the kind of exaggerated bidding that took place in the first phase.

Highest bid

The Government feels that broadcasters — wiser by the experience of the first phase — would make realistic bids this time round.

Also, to provide for a sustainable system, the Government is proposing to make the highest bid in a metropolis the benchmark for other licensees in the city.

Further, every broadcaster which bags a metro station will have to take up an FM station in a non-metro to broadbase FM in the country.

Now that the TRAI recommendations are in, the I&B Ministry is planning to firm up its policy for the second phase of FM — factoring in the loopholes of the existing regime which did not facilitate the envisaged spread of FM in the country — over the next two months.

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