FM RADIO (4-Aug-2005)

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GOVERNMENT OF INDIA 
INFORMATION AND BROADCASTING 
LOK SABHA 


UNSTARRED QUESTION NO:7820 

ANSWERED ON:04.08.2005 

FM RADIO 

Mane Smt. Nivedita;Singh Shri Kirti Vardhan;Yadav Shri Anirudh Prasad (Sadhu) 


Will the Minister of INFORMATION AND BROADCASTING be pleased to state: 


(a) whether the Government has decided to replace the present licensing system for FM Radio by revenue sharing system; and 


(b) if so, the details thereof alongwith the reasons therefor? 


Answer 
THE MINISTER OF INFORMATION AND BROADCASTING AND CULTURE (SHRI 5. JAIPAL REDDY) 


(a) & (b): In view of the experience gained during the implementation of Phase | of FM radio broadcasting through private agencies, 
the Government constituted a Committee under the Chairmanship of Dr. Amit Mitra, Secretary General, FICCI for making 
recommendations for Phase Il FM broadcasting. Telecom Regulatory Authority of India (TRAI) examined the Report of the Committee 
and made recommendations to the Government. After examination of TRAI's recommendations and the report of Amit Mitra 
Committee, the government has notified a policy for Phase Il of FM radio broadcasting. The new policy, inter-alia, provides for One 
Time Entry Fee (OTEF) to be decided on the basis of closed tender system, annual fee @ 4% of gross revenue subject to a minimum 
of 0% of Reserve OTEF. The policy also provides for migration of Phase | operators to Phase Il regime. Further details of the policy 
are available on this Ministry's website (www.mib.nic.in).