New Delhi: Radio operators have raised issues about pricing and operational challenges in response to a session paper issued by the Telecom Regulatory Authority of India (Trai) on reserve costs for FM radio channel auctions underneath the FM Section-III Coverage.
Trai has scheduled an open home dialogue with stakeholders on 10 October.
The Affiliation for Radio Operators for India has stated the final batch of frequencies auctioned failed, with lower than 25% of the frequencies supplied being bid for attributable to overpriced minimal reserve costs.
“Subsequent Trai suggestions have corrected sure anomalies. Nonetheless, flaws stay in public sale methodology which can adversely have an effect on new auctions, particularly in smaller cities the place there’s little curiosity attributable to low income risk and the excessive fastened price resembling annual charges and spectrum charges and so on.,” the affiliation stated.
Whereas acknowledging the proper of Trai and the federal government to repair a minimal worth, the affiliation has stated that the target of increasing FM community into new cities shouldn’t be neglected, as a result of in most of cities there’s little or no skilled media to share native information and knowledge. Knowledgeable media will create financial alternatives via promoting alternatives and enormous attain, it added.
Sambhaav Media Ltd, an Ahmedabad-based media group additionally famous that current broadcasters face excessive operational prices, together with infrastructure upkeep, workers salaries and different recurring bills, which aren’t aligned with the decrease capital expenditure for brand spanking new entrants.
“The growing reputation of internet-based music streaming providers and digital platforms has shifted client preferences away from FM radio. These platforms provide larger comfort, an enormous choice of content material and personalised experiences that conventional radio struggles to match,” the group has written in a letter to Trai.
FM radio broadcasters discover it difficult to draw and retain advertisers, they stated, including that the lack to safe this income makes it onerous to maintain operations and put money into high quality programming.
In September, Trai had released recommendations on points associated to FM radio broadcasting, together with non-public FM Radio operators being allowed to broadcast information and present affairs programmes, restricted to 10 minutes in every clock hour, in addition to removing of linkage to non-refundable one-time entry payment and extension of the present FM licence interval of 15 years by three years.