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economy/businesssound modulationThe FM Phase-III policy allows more categories to be treated as non-news; permitsradio broadcast of All India Radio news bulletins; and relaxes private ownershipnorms for 839 new FM channels to be launched in the countrythe Union Cabinet on July 7approved the FM Phase-IIIpolicy, which expands FMradio broadcasting servicesthrough private operators to 227 newcities. According to Information andBroadcasting Minister Ambika Soni,“A total of 839 new FM radio channelswill be launched in 294 cities, in additionto the already present 86 cities.”As a result, all cities with a populationof 100,000 and above will nowget FM radio channels.Unlike the previous policy, thephase-III policy allows radio operatorsto broadcast All India Radio news bulletinson their channels.Categories like information andcoverage of sporting events, trafficand weather conditions, culturalevents, festivals, examination results,admissions, career counselling andemployment opportunities will now betreated as non-news and non-currentaffairs and their broadcast permittedfreely.Broadcast about public announcementspertaining to civic amenitiesthe policy will not only result in coverage of all cities with population of 100,000 andabove, but will also permit radio operators to carry all india radio news bulletins30 Pravasi Bharatiya July 2011
like electricity, water supply, naturalcalamities and health alerts, as providedby the local administration, will also betreated as non-news.The limit on the ownership of channels,at the national level, has been retainedat 15 percent. However, channelsallotted in Jammu and Kashmir, theNorth-Eastern states and island territorieswill be allowed ownership over andabove the 15 percent national limit.Private operators have been allowed toown more than one channel but notmore than 40 percent of the total channelsin a city, subject to a minimum ofthree different operators in the city.The Foreign Direct Investment andForeign Institutional Investment limit ina private FM radio broadcasting companyhas been increased from21percent to 26 percent.milestones in Fm radio broadcasting1935: Edwin Howard Armstrong, an American electrical engineer, presented his paper:“A Method of Reducing Disturbances in Radio Signalling by a System ofFrequency Modulation”, which first described FM radio, before theNew York section of the Institute of Radio Engineers1977: In India, first FM Service begins in Madras, now called Chennai1993: AIR sells timeslots for Private FM Radio broadcasting in 5 cities1999: Privatisation of FMOn July 6, 1999, the Government opens up airwaves for private radio broadcasters.Under the Phase I Policy, companies allowed to bid for 108 radio channels in 40 cities.Under the Phase II Policy, the Government announces bidding for an additional 338radio channels in 91 cities.2001: FM radio businesses granted their first licences2011: FM Phase-III policy expands FM radio broadcasting services through privateoperators to 227 new cities. A total of 839 new FM radio channels launchedcountrywidehighlights oF the FmPhase-iii Policy:The Cabinet has cleared the Information and Broadcasting Ministry’s proposal forconducting ascending e-auction of FM radio licences, which could net the exchequerover `17.33 billion ($391 million). The auction would be conducted on similarlines as was done for the allocation of 3G and BWA spectrum in 2010.Salient points:nnRadio operators will now be permitted to carry news bulletins of All India RadioThey will be allowed to broadcast information regarding sporting events, employmentopportunities, public announcements pertaining to civic amenitieslike electricity, water supply, natural calamities, health alerts, among other thingsn Private operators can now own more than one channel but not more than 40percent of the total channels in a city and subject to a minimum of three differentoperators in the cityn The limit on the ownership of channels, at the national level, allocated to anentity has been retained at 15 percentn Channels allotted in Jammu & Kashmir, North-Eastern states and island territorieswill be, however, allowed ownership above the 15 percent national limit toincentivise the bidding for channels in such areasn Only three channels will be permitted in D category cities as against the currentfour channels, to improve advertisement revenues of each playern Lock-in period of promoter shareholding reduced to three years from the currentfive yearsJuly 2011 Pravasi Bharatiya 31
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