Top Story


Home >> Media - Radio >> Article

Trai wants to defer licence fee for FM channels

Font Size   16
Trai wants to defer licence fee for FM channels

In what may come as reprieve to the country’s troubled private FM radio companies, the Telecom Regulatory Authority of India (Trai) recommended deferment of licence fee for them. The companies were due to pay the licence fee for the next year’s operation by this month end.

The regulator has taken this opinion in view of the impending final decision on a policy recommended by the FM radio committee headed by Amit Mitra. In its interim recommendations, the regulator said the licencees would be given the option of deferring the payments till a final decision was taken.

“This would be subject to the condition that the dues as finally decided by the government, after taking into account the recommendations of Trai, would be collected from the licencees with interest from the due date, on the quantum of licence fees found to be payable,” Trai said.

The final recommendations of Trai will address the issue of the licence fee payable as well as the relevant interest rate. Trai said it had been in the process of preparing a consultation paper on the FM radio sector after consultations with stakeholders. It had also called for the accounts of first-phase licencees and these were being scrutinised.

The information and broadcasting ministry had on February 12, sent the report of the task force headed by Amit Mitra to Trai for its recommendations.

The government had pointed out that in respect of Mumbai, the next licence fee for the third year was due in April this year. In Delhi, Kolkata and Chennai, licencees had not paid the fee for the second year during August last year and requested the government to charge the fee from the date of actual operation. This matter was under consideration of the government and if approved these licence fees would also become due in April.

The FM radio companies had called upon the government to allow them not to pay the licence fee till it took a view on the FM Radio committee. The committee has suggested a change over from the present fee regime to a revenue share method. It has recommended a revenue share of 4 per cent of gross revenue, in the revenue share regime.

In the existing regime, the license fee was determined by an auction process, which would escalate by 15 per cent every year. For example, the annual licence fee for Delhi circle in the first year was Rs 7.18 crore which would go up by 15 per cent this year. Most of the FM radio companies have told the government that their revenue is not even sufficient to meet the licence fee requirements.


Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

Mumbai was chosen in keeping with the company's focus on featuring their proprietary technologies over undiscovered markets like South Asia

The campaign, featuring brand ambassador Farhan Akhtar, exhorts consumers to showcase their achievements through the walls of their homes.

We list a few important stories that you may have missed in the week gone by