New Delhi, Apr 02: Several FM radio companies today lamented that they were facing severe losses and asked the government to switch over to the revenue-sharing regime. However, government is understood to be disinclined to agree to this demand saying it was a policy decision under which the companies had bid for licenses. Representatives from six FM players met Information and Broadcasting Minister Ravi Shankar Prasad and expressed their woes about the business, sources said.
They said the companies, some of which have been running FM radio for over a year, were suffering financial losses and demanded that government change to the revenue-sharing regime from the present license fee. The FM players whose representatives met the minister today included those floated by India Today, Times of India and Star.
The open auction for selecting licensees was held first in March, 2000, on the basis of which 29 companies were selected for allocation of 101 channels in 40 city centres. Government had introduced a ten-year licence term with 15 per cent increase every year. Radio broadcasting saw a revolution last year with private FM launching services in several cities including Mumbai, Bangalore, Ahmedabad, Lucknow and Indore while more cities are expected to tune in to it very soon.
Bureau Report