The Cabinet on Friday gave its approval for conducting of FM Phase-III auction and renewal of Private FM Radio licenses from Phase-II to Phase-III in 69 existing cities for 135 channels. This will be done on payment of migration fee according to recommendations of the Telecom Regulatory Authority of India (TRAI).
The process will add an estimated revenue of over Rs550 crore to the National Exchequer on successful auctions of all proposed channels. Besides, it will beget the amount realised through the migration process which is dependent on the TRAI recommended formula, where migration fee is linked with the discovery of market prices through the FM Radio Phase III auction.
The Phase III will mean e-auction for 839 FM channels in 294 cities which is expected to commence before the end of the present fiscal. However, it will continue over the next three years. The Government has already appointed an e-auctioneer and also an external monitor to ensure probity. The decision relating to Phase-III was taken by the Cabinet on 7 July 2011. The Empowered Committee in March 2014 had decided to charge a fee for migration to existing operators who wanted to move to Phase-III.
The Phase-III that had been delayed since then will be on an ascending e-auction basis. As of now, with the implementation of two phases of Private FM Radio, Phase-I (1999-2000) and Phase-II (2005-06), there are 243 private FM channels operating in 86 cities of the country, spanning 26 States and three Union Territories. The decision for auction is critical for the radio industry since some of the licenses of the channels are expiring on 31 March, 2015.