ITV

Tag: Dr Mitra

  • Private FM players get payments breather: Trai issues interim recommendations

    Private FM players get payments breather: Trai issues interim recommendations

    MUMBAI: After a long while, some cheer for private FM radio broadcasters.

    The Telecom Regulatory Authority of India (Trai) today issued its interim recommendations on private FM broadcast. According to the recommendations, FM licensees may be given the option of deferring payments, which may fall due till a final decision is taken.

    The dues as finally decided by the government, after taking into account the recommendation of Trai, would be collected from the licensees with interest from the due date, on the quantum of license fees found to be payable.

    The final recommendations of Trai would address the issue of license fee payable as well as the relevant interest rate, says a Trai statement.

    Following Trai’s latest directive on the matter, all licensees could be given the option of deferring their next instalment of dues subject to the condition that they would pay this amount, after the issue is decided by the government, with interest as may be decided finally.

    Previously, the government constituted a committee on 24 July ’03 to make recommendations for radio broadcasting for phase – II. Chaired by FICCI’s secretary general Amit Mitra, the committee’s terms of reference, inter alia, included the following:

    “Study the desirability and legal implications of making modifications in licensing regime of phase-I licensees should a different licensing regime be proposed for phase-II.”

    Subsequently the ministry of information and broadcasting, had, on 12 February ’04, sent the report of the committee headed by Mitra to Trai for making appropriate recommendations.

    On 11February ’04, five private FM broadcasters had met the deputy prime minister and submitted a representation requesting for deferment of the annual FM license fee, till the government takes a decision on implementation of the FM radio task force’s recommendation. This representation had been referred to Trai, for its recommendations, by the government on 24 February ’04.

    The government had in its letter pointed out that in respect to Mumbai, the next license fee for the third year is due in April 2004. Delhi, Kolkata and Chennai, licensees have not paid the license fee for the second year due in August 2003, requesting the government to charge the license fee from the date of actual operation. While the government is still considering the matter, if approved, these license fees will also become due in April ’04. It has been pointed out that the request of private broadcasters involves the relaxation of terms and condition of the license.

    For making appropriate recommendations on the radio broadcast policy committee report, Trai has been in the process of preparing a consultation paper on which it would seek the comments of all the stakeholders. In this connection Dr Mitra gave a presentation on his report to the authority and will be submitting additional information to the Authority.

    Trai has called for the accounts of the phase I licensee and these are being scrutinised. It is also in the process of holding meetings with various stakeholders in this regard. This process is likely to take time and in the meanwhile the license fees of some of the operators is likely to fall due. As such, an interim recommendation has been given to the government on its second request dated 24 February ’04 since this issue overlaps with and is linked to the first request for recommendations.

  • FM radio panel moots 26% FDI, news programming

    FM radio panel moots 26% FDI, news programming

    NEW DELHI: This could turn out to be music to the ears of the financially beleaguered private players in the FM radio sector.
     

    In what may amount to radical changes (if the Indian government accepts the report that is), a task force on FM radio broadcast policy has suggested that private players be allowed to air news and current affairs programming and also attract foreign investment up to 26 per cent as per norms prevalent in the news segment of the print and electronic media.

    The task force, set up by the information and broadcasting ministry under the chairmanship of Ficci secretary-general Dr Amit Mitra, has recommended a revenue sharing arrangement (annually 4 per cent) along with an entry fee for private operators in FM broadcasting instead of the fixed license fee regime and a pre-qualification round to adjudge bidders’ viability.

    At present, private FM radio stations are not allowed to broadcast news and current affairs programmes (except stock, weather and traffic reports) and neither can they solicit foreign investment. Only foreign financial institutions (FIIs) are allowed to make portfolio investments presently in private FM radio ventures as per the Reserve Bank of India guidelines.

    The Mitra panel submitted its report to the government this morning.

    Reiterating what indiantelevision.com had written in the past, I&B minister Ravi Shankar Prasad, after receiving the report from Dr Mitra, said, “Some of the suggestions of the panel if made implementable would need a green signal from the Union cabinet.”

    The minister also said that the government would take about a month’s time to study the various recommendations of the task force that has mooted setting up of a broadcast regulatory authority too. “Pending the creation of a regulator, a non-statutory committee should be set up, which has terms and reference similar to what the Regulator would have,” the panel has said. Buttressing its argument, the panel pointed out that the formal creation of stock markets regulator Securities and Exchange Board of India (SEBI) was “preceded by such a (non-statutory) committee.”

    Explaining the time that would be consumed by the government to take a final view on the report, I&B ministry secretary Pawan Chopra explained various recommendations and amendments suggested would need the involvement of and feedback from other ministries like home and departments of telecom and space. “This is likely to take time before the amendments to be made can be taken before the Cabinet,” he added.

    However, Prasad assured that it would be the government’s endeavour to expedite the report as soon as possible. But it needs bearing in mind that in the past also various committees had submitted reports, including one on restructuring Doordarshan to make it financially viable, all of which have gathered dust in the I&B ministry.

    Dwelling on the suggestion of revenue sharing instead of license fee model being adopted now, Dr Mitra said that initially the task force expects the government may take a hit of Rs. 500-600 million. “But in the long run, the government stands to gain from revenue sharing,” he added.

    The FM radio task force has suggested a cap of 26 per cent on FDI (including that on foreign debt funding, NRI and overseas corporate bodies).

    In a view that can be termed divergent from that held by the government, the committee has also recommended allocation of multiple licenses in the same city, permission for networking by the same broadcaster on several stations and removal of the co-location condition for making this sector viable.

    “In light of the fact that networking can significantly reduce capital expenditure and operating expenditure of a broadcast station (specially in small cities), we recommend that networking be permitted. We believe that the market mechanism will ensure differentiation of content reflecting listener’s choice,” the panel has observed, adding, “The number of frequencies that an entity, directly or indirectly, may hold in a particular centre, be restricted to three or 33 per cent of the total licenses available in the centre band) whichever is less.”

    Also, for migration to the new regime, the committee has come out with a cut-off date of 24 July, 2003, while recommending that bidders not be blacklisted for new licenses on the basis of their default in the first phase.

    Making a case for release of more frequencies and/or optimum use of available frequencies, the FM radio panel has suggested that in every city, certain frequencies should be “reserved for niche channels, to be tendered separately with a low reserve fee and low revenue share percentage.”

    In this connection the panel has pointed out, “Such niche channels will be initially required in A+, A and B category (as per socio-economic clasification) towns.The committee also strongly urges the government to consider releasing additional frequencies to encourage such niche channels.”

    The government set up this committee over three months back The panel comprised Dilip Chennoy (CII), Kiran Karnik (NASCOM), radio personality Ameen Sayani , wireless adviser P.K. Garg, AIR engineer-in-chief K.M.Paul, KRP Verma, CMD of BECIL, Shardul Shroff of Amirchand Mangal Das, Ms Noreen Naqvi, DDG (prog.) in AIR and Mahua Pal, director in the I&B ministry.

    The terms of reference of the panel were the following:

    (i) Determining a transparent and effective bidding /auction process to be adopted for allotment of frequencies.

    (ii) Assessment of a viable licensee fee structure for the various cities (one time entry fee, fixed license fees, revenue sharing etc.) to be based on clearly defined parameters.

    (iii) Suggestions regarding extent of foreign equity participation in private FM in order to make them economically more viable/sustainable while also keeping in mind regimes in other sectors and requirements of national security.

    (iv) Study the desirability and legal implications of making modifications in licensing regime of Phase-I licensees should a different licensing regime be proposed for phase-II.

    (v) Suggestions for improvement in content being broadcast and considering the inclusion of news.

    (vi) Examining the possibility of having non-commercial, non-advertisement driven channels, to be operated/licensed by the same commercial broadcasters; terms & conditions thereof; consideration of whether type of content of these channels could include subjects related to the heritage and culture of India.

    (vii) Recommendations for a code of conduct in programming matters and method of strict enforcement for violations thereof.

    (viii) Assessment of whether co-location is necessary and desirable and if found otherwise, approach to be adopted in the metros, where co-located set ups involving huge investments stand operationalised.

    (ix) Determining the legal implications of the regime that may be proposed vis–vis the existing one.

    (x) Formulating draft bidding documents and contract/license agreement.

    (xi) Other matters as may be referred to the Committee from time to time.