By IANS
New Delhi : Indian FM radio stations need additional radio frequency to diversify content and deepen reach, said a leading industry chamber.
The Federation of Indian Chambers of Commerce and Industry (Ficci), in a wish list to the information and broadcasting ministry, also called for allowing the trading of licenses, raising foreign investment limit and providing a level playing field between FM (frequency modulation) and satellite radio.
“With appropriate policies, the reach of the medium can be much larger than TV, especially given the fact that it is a free-to-air medium unlike television, cable, or other services that demand a subscription charge,” it said in a statement.
On the issue of allowing more frequencies to radio channels, the industry body said: “Any broadcaster should be allowed to own multiple licenses in a city. This is the definitive way to ensure diversity of content for listeners.”
“The government must allow the FM industry the freedom and flexibility that a business needs. Acquisitions and sale of businesses is an integral part of the normal growth pattern of any industry,” Ficci said.
Ficci has also recommended fixing of a fee for music royalty coupled with concessions given for small towns, older music, time of broadcast and size of radio broadcaster.
In urging a level playing field for both FM and satellite radio channels, Ficci sought that there should be only a one-time entry fee for the latter as in FM radio.
Also, similar to FM radio, satellite radio should be charged a revenue sharing fee at four percent for advertisement and 20 percent for subscription.