Fm Radio
SECTOR FOCUS: RESURGING FM RADIO
• Phase-II of FM Radio: 338 frequencies for radio stations 91 cities were on block • The government awards 280 licenses for a total sum of $205 million • Sun, Adlabs, HT Music, ENIL emerge as the leaders with nationwide footprint • Government introduces new revenue-sharing model
Radio, once perceived as a dying medium, got a new life with the emergence of FM Radio. The public broadcaster All India Radio took the lead in introducing FM radio stations in February 1995. In 1999, the government opened up the industry to private companies. While they established themselves in India’s major cities, they couldn’t build a profitable business because of the high license fee structure. The government has now changed the fee structure to make FM radio a more viable business. And it has authorized the set up of FM radio in 91 cities across the country in a “Phase II” rollout. As a result, companies ranging from the obvious media ones to unlikely real estate firms, have bid and won Phase II licences.
FM Radio Phase-II: Radio Revived
FM Radio, so far restricted to a few cities in India, is set to become a nationwide industry. The Government of India has just concluded the five rounds of bidding for 10-year licenses in 91 cities across the country. The Phase-II bidding process attracted greater interest
compared with the first phase in 1999. Phase I participants, such as New Delhi-based Living Media India Limited and Mumbai-based Midday Multimedia Limited popularized FM in large metropolitan cities and paved the way for Phase II. With the relaxing of the licensing regime, the winners of new licences under Phase II, are looking to get a slice of the FM market predicted by The IndusView to grow to 125 million in 2010 from $25 million last year.
FM Radio Phase-II: The Bidding Process
The government had put total 338 frequencies in 91 cities on the block as part of phase-II compared to 21 licenses (currently operational) allotted in the
• Phase-II of FM Radio: 338 frequencies for radio stations 91 cities were on block • The government awards 280 licenses for a total sum of $205 million • Sun, Adlabs, HT Music, ENIL emerge as the leaders with nationwide footprint • Government introduces new revenue-sharing model
Radio, once perceived as a dying medium, got a new life with the emergence of FM Radio. The public broadcaster All India Radio took the lead in introducing FM radio stations in February 1995. In 1999, the government opened up the industry to private companies. While they established themselves in India’s major cities, they couldn’t build a profitable business because of the high license fee structure. The government has now changed the fee structure to make FM radio a more viable business. And it has authorized the set up of FM radio in 91 cities across the country in a “Phase II” rollout. As a result, companies ranging from the obvious media ones to unlikely real estate firms, have bid and won Phase II licences.
FM Radio Phase-II: Radio Revived
FM Radio, so far restricted to a few cities in India, is set to become a nationwide industry. The Government of India has just concluded the five rounds of bidding for 10-year licenses in 91 cities across the country. The Phase-II bidding process attracted greater interest
compared with the first phase in 1999. Phase I participants, such as New Delhi-based Living Media India Limited and Mumbai-based Midday Multimedia Limited popularized FM in large metropolitan cities and paved the way for Phase II. With the relaxing of the licensing regime, the winners of new licences under Phase II, are looking to get a slice of the FM market predicted by The IndusView to grow to 125 million in 2010 from $25 million last year.
FM Radio Phase-II: The Bidding Process
The government had put total 338 frequencies in 91 cities on the block as part of phase-II compared to 21 licenses (currently operational) allotted in the