Top Story

e4m_logo.png

Home >> Media - Radio >> Article

Trai says FM radio licence fee too high

20-November-2004
Font Size   16
Trai says FM radio licence fee too high

The tiff between the government and the Telecom Regulatory Authority of India (Trai) has taken a new twist, with the regulator insisting that the present high licence fee regime for private FM radio companies is not sustainable.

The government had earlier rejected Trai's recommendations that it migrate to a revenue share model from the present licence fee regime.

Besides, Trai has also reiterated its earlier recommendation that private FM radio companies be allowed to air news and current affairs programmes.

"Allowing news and current affairs will also boost listenership and, thus, revenues," it said in response to the government's observations on its recommendations on licensing issues relating to the second phase of private FM radio broadcasting earlier in August.

On the government's contention that an annual licence fee of 4 per cent of gross revenues was unacceptable, as it would reduce the mop-up to low single-digit figures, against the over Rs 100 crore as per the current set-up, Trai said it was not sustainable.

"It needs to be strongly emphasised that the current revenues of more than Rs 100 crore per annum are not sustainable. The important point to emphasise is that all licencees have incurred losses and that in aggregate this loss is more than the existing licence fee," Trai said.

"Of even greater significance is the fact that out of the 108 frequencies put on bid, only 21 are operational today, and of these, two have also given notice that they would close down," Trai said.

Tags

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

Strategized and executed by WATConsult, the campaign portrays different personalities through different shades of make-up.

At the recent unveiling of the Pitch Madison Advertising Report 2018, industry leaders from Dominos, Titan Watches, Nature’s Basket and Big Bazaar drew their conceptual learnings on factors that build...

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.