Stars on FM

The Union cabinet on Thursday gave the go-ahead to the third phase of FM radio expansion in India. There are many aspects to this that need to be celebrated. The first is that the maximum foreign-owned stake in a channel has been raised,if marginally,to 26 per cent. The government can be bolder in allowing foreign ownership. Theres also the good news that licences in this stage will be assigned through an auction,as is best practice.

Most importantly,however,the third phase means that FM radio will be extended to 227 more towns. Currently,86 cities have FM stations. This will create,according to the government,839 new radio channels,mostly in small towns that have no current radio footprint. This is excellent news. Smaller communities deserve the chance to have a local radio station all their own. Such stations,even if their content is owned by a larger corporate entity,frequently create a competitive edge by embedding themselves firmly in the community they serve,becoming an on-air billboard for its concerns those,at least,not directly political and a vocal,virtual public square. That this should happen to glue new,growing communities together is particularly helpful.

In another aspect of the order,FM companies will be allowed to operate more than one station per city. This is also good news; the nature of marketing in this sector is that,while a single station might drift towards median tastes,the ability to diversify will encourage the development of niche stations. If too many FM stations sound the same,this restriction is the culprit and one might look forward to that changing very soon. Things have come a long way since private FM radio started broadcasting in our largest cities almost two decades ago. This next jump might be the largest,and most influential yet.