Govt okays 20% FDI in FM radio

The last time the government decided to auction radio frequencies in 1999, the consequences were disastrous for both as players in their bid to keep others out, outbid each other. Of the 108 frequencies bid for, 21 became operational as the government lost out on the money that could have come its way.

Mired in litigation, the much-promised radio revolution did not happen.

Six years later, the government has ushered the second phase of radio FM and this time, will float a tender inviting closed bids from players to 330 radio stations in 90 cities.

This is being done to prevent a war of bids. But keeping with the tradition of treating news and current affairs sacrosanct, it has been decided to keep it out of reach for FM part 2.

It was to correct the anomalies of the past that the NDA Government had appointed a committee under Amit Mitra and authorised Trai to suggest changes. Reddy said, the recommendations of both were taken into consideration in framing the second phase of FM. The bidding for the second phase of FM will begin in a month’s time.

‘‘The new players will have to pay a one-time entry fee through close bidding process, and each successful bidder will pay as per his bid amount,’’ Reddy said. With the government deciding to allow older players, they will have to pay the average bid amount of new players per circle.