The Hindu : National : Pact signed to establish 25 FM radio stations

Online edition of India's National Newspaper
Friday, Jan 14, 2005

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National

Pact signed to establish 25 FM radio stations

NEW DELHI, JAN. 13. Spurred by the favourable policies for the electronic media, the Digital Media Entertainment of the United States has joined hands with Digital Broadcasting Private Limited to establish 25 FM radio stations across India during 2005-06.

According to a memorandum of understanding signed at a function in Gurgaon today, the U.S. company will provide turnkey solutions to private operators interested in commissioning FM radio stations across the country.

"To double the reach of FM radio from 30 to 60 per cent during the 10th Five Year Plan, the Government should enhance the limit of foreign direct investment from the proposed 26 to 49 per cent and should incorporate this in the second phase of license auction," said the Digital Media Entertainment chairman, Paul Suri, a non-resident Indian based at New Jersey.

The chairman and managing director, Digital Broadcasting, Rajiv Mishra, said "for the growth of the FM radio industry in India we need a sustainable revenue-share regime and the Government should lessen the continuing financial burden on bleeding FM radio companies by clearly defining the migration process from the first phase to the second phase."

"The favourable policy will certainly strive growth and we urgently need to end the uncertainty and delay on reforms in the FM radio sector," Mr Mishra added.

The new FM radio policy would be outlined shortly and the second phase of licence auction is expected in the first quarter of 2005-06.

— UNI

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