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Dr. Ankuran DuttaHead, Dept. of Communication & Journalism, Gauhati University, India
Managing Trustee, Dr. Anamika Ray Memorial Trust
Commercial Radio in IndiaPrivate FM Radio Services
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this presentation is dedicated to Dr Anamika Ray
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Growth of Radio in India
• 13 years before AIR came into existence.
• In June 1923 the Radio Club of Bombay made the first ever broadcast in India.
• Followed by the setting up of the Calcutta Radio Club five months later.
• The Indian Broadcasting Company (IBC) started on July 23, 1927.
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Growth of Radio in India
• April 1930, the Indian Broadcasting Service, under the Department of Industries and Labour, commenced its operations on an experimental basis.
• Lionel Fielden was appointed the first Controller of Broadcasting in August 1935.
• A month later Akashvani Mysore, a private radio station was set up.
• On June 8, 1936, the Indian State Broadcasting Service became All India Radio.
• July 23, 1977 : First ever FM Service was inaugurated from Madras
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Private FM in India
In 1995, the Govt. of India decided to open FM stations to private players in three phases
First Phase – 1999
Second Phase – 2006
Third Phase - 2010
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PHASE 1: 1999• Auctioning of FM bands to Private stations begins
• 21 stations commissioned across 12 cities
• The Cities include New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Hyderabad, Lucknow and Jaipur.
• 108 radio frequencies put up by the Government across 40 cities.
• Radio Mirchi by The Times Group amongst the first private FM stations set up.
• India’s first Private FM station came up in Bangalore.
• Phase-1 faced several problems, such as rigid policies, unviable license fee and lower advertisement flow, resulted in only 21 stations getting off the ground across 12 cities in Phase-I.
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PHASE 2
• The government changed the fee structure to make private FM radio a more viable business.
• The Phase-II bidding process attracted greater interest compared with the first phase in 1999. All the 91 cities were classified in A-plus, A, B, C and D categories.
• 338 frequencies for radio stations 91 cities were on block
• The government awards 280 licenses for a total sum of $205 million
• Sun, Adlabs, HT Music, ENIL emerge as the leaders with nationwide footprint
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PHASE 2
• Government introduces new revenue-sharing model
• The private FM Radio companies bidding for these licenses won 280 out of these 338 frequencies offered for a total sum of $205 million (Rs. 907 crore) of one time entry fee (OTEF).
• After the all five rounds of bidding, south India’s television network Sun Group bidding through its two companies—Kal Radio Private Limited and South Asia FM Private Limited has managed to win total 67 frequencies. It already has four operating stations taking the total tally to 71.
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PHASE 3
• Government was expected to take up the third phase of expansion in 2010 however, it has been delayed.
• Govt. expected to open bid for over 700 new stations, most of which in smaller towns.
• Third phase should see the Govt. allowing broadcasting of news albeit it is sourced from AIR or DD.
• Govt. to allow increase in FDI from 20% to 26%.
• It is also likely to see relaxation in the 15 per cent limit on the number of channels an entity can own in the case of Jammu & Kashmir and the North-East.
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