TRAI moots revenue share regime for FM

NEW DELHI: The Telecom Regulatory Authority of India, in its recommendations on private FM radio released today, has suggested a new licensing regime consisting of a one time entry fee and a revenue share of four per cent.

The latest recommendations, looked forward to eagerly by private FM players currently reeling under crippling license fees, have suggested allowing the maximum number of frequencies possible in metros like Hyderabad and Bangalore. The TRAI has also recommended a minimum of two frequencies even in the smallest towns to ensure competition.

It has recommended that the existing restriction on news and current affairs continue, but that they be reviewed by the government and lifted after incorporating adequate safeguards. The Authority has also recommended migration of Phase I licensees to the revised Phase II regime in case they are successful in the bidding for Phase II, thus acceding to a long pending demand by the players.

A low entry fee has been recommended with a view to maximizing the number of players so as to afford the widest possible competition, says an official press release.

Click here to read the full draft of the TRAI recommendations.