Budget 2009: Wish list from radio media

Televisionpoint.com Correspondent | Mumbai
Ambika Soni, Information and Broadcasting Minister, has received a lots of expectations from the radio fraternity, which has also been transferred to Pranab Mukherjee, Finance Minister.

In the run up to Budget 2009, the industry is looking forward to some positive developments during her tenure and some definitive decisions on several issues.

The radio industry seeks the implementation of Phase 3 of radio reforms. The policy has been ready for some time and it can be pushed through immediately. The government must however delay the portion of Phase 3 policy, which relates to auctions of new cities till the time that the problems of music royalty can be settled. All other reforms as envisaged in the policy should be implemented at the earliest.

With respect to the satellite radio policy, the government must re-look the matter. There is no gain in hurrying through with a policy that can lead to the total destruction of the nascent FM radio industry. Specially, the provision of terrestrial repeaters being considered should be dropped.

Additionally, any disparity that exists between satellite radio policy and FM policy must be bridged. Specifically speaking - foreign direct investment (FDI) limit must be the same; OTEF charged to satellite broadcasters must be much much higher than presently conceived - with a national reach, satellite radio impacts the fortunes of the entire FM radio industry.

The Association of Radio Operators for India (AROI), has been petitioning the Ministry to look into the costs that Prasar Bharati charges private FM operators. Be it the rentals for its towers or its land. These are way higher than market rates and are proving to be a big burden for the industry.

The government has recently empanelled many FM stations in many towns. However, this exercise is still not completed and many of the smaller stations are still not empanelled. Besides, the rates the Dirctorate of Advertising and Visual Publicity (DAVP) has offered - in many cases - are way too low. They need to be relooked at.

Given the severe economic slow-down - especially in the media and entertainment space - the government must look at giving the FM industry a moratorium on license fee payments for the next 2-3 years (or till the downturn eases).

At the same time, the government must look at extending the period of the license to 15 years from the present 10 years - the government knows perfectly well how badly the FM industry is doing - this act of the government will help in bringing some semblance of profitability to the FM industry - if not now, then at least in the long term.

Moreover, news and current affairs should be allowed on radio. This is critical for a vibrant media and the growth and relevance of radio as a medium of mass communication. The full potential of radio will be unleashed only when news is allowed.

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