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Zee Telefilms to tune in to FM channel business

27-September-2005
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Zee Telefilms to tune in to FM channel business

Zee Telefilms is all set to foray into the FM channel business and will bid for the same in the second phase of FM channel expansion. This was revealed by Zee Telefilms Chairman, Subhash Chandra, on the sidelines of signing an agreement with the All India Football Federation (AIFF) for telecast rights of domestic football matches for 10 years.

Chandra added, “The Zee Board of Directors will meet on September 28 and take a final decision on the matter.” Refusing to divulge further details of his radio plans, Chandra said, “It will take at least three or four years for FM channels to be commercially viable.”

After getting a lukewarm response in the first phase of FM channel expansion, the Ministry of Information and Broadcasting came out with an ambitious plan for the second phase of expansion and alterered the license fee regime to a revenue sharing one.

Zee had won the bids in the first phase itself, but refused to enter the fray citing exorbitantly high license fees.

In Phase II, the govt is eyeing to expand the network of FM channels to 338 more channels in 91 cities. Many more surprises are still awaited as analysts feel more media houses may get interested in tapping the business opportunity in this sector. Deccan Chronicle has already expressed its intention to enter the process.

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