Govt to appoint auctioneer for FM Phase III

To invite proposals from interested parties in a month's time

PTI | March 29, 2012



The government is set to finalise an auctioneer for e-auction of FM radio Phase III and invite proposals from interested parties in a month's time, a government official said.

"We should be able to float the RFP (Request for Proposal) in maximum of four weeks and select an auctioneer," Ministry of Information and Broadcasting Additional Secretary Rajiv Takru said here.

He said the RFP is ready and comments from various ministries are being sought on it. "So far I have seen one comment from the WPC," he said, adding the auction would be completed in two phases.

The Wireless Planning and Coordination (WPC) is a wing of the Ministry of Communications and Information Technology. The government expects to garner Rs 1,500 crore in revenue from the auction of FM Radio Phase III licence, for providing services in 227 cities, in addition to 86 cities covered currently.

The Phase I and Phase II auctions led to total revenue accrual of about Rs 1,733 crore up to May 31, 2011 from one time entry fee, migration fee and annual fee, among others.

According to Association of Radio Operators for India (AROI), private FM operators have been waiting long for the process to kick off. "If it is on the move (phase III), then it is great for the radio industry. We have been waiting for it," AROI President Anuradha Prasad told PTI.

She, however, said the government needed to do more for the sector especially in terms of content availability. "Radio is still a very controlled industry. The government needs to address a lot of other policy issues such as making content, including news, available," she said.

"Most of the radio companies are not making money right now, so I am not sure what will be the interest level among firms to participate in the upcoming auction," she added.

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