January 6th proved to be the dawning of a new era for FM radio in India. In a bid process covering around 58 radio stations in 13 cities, including the four metros and fast-expanding cities like Bangalore and Hyderabad, a range of would-be radio operators jockeyed for position.
The bid process follows the relaxation of the Indian government control of FM radio broadcasting. For the government, the new bids have yielded dividends in the form of a healthy licence fee while listeners gain a wider variety of radio entertainment options and, in all likelihood, greater sophistication in programming.
25 companies won stations by forking out Rs 568 crore (thats around £72million or US$178million) for 53 frequencies. HT Music won frequencies in Mumbai, Delhi, Kolkata and Bangalore. Radio Mirchi gained licences for all seven FM stations that it had bid for in the first leg of the Phase II FM radio bidding held by the Information and Broadcasting Ministry.
Apurva Purohit, CEO of Music Broadcast (Radio City), said: “This is good news for the industry. The whole sector will grow. The process was handled brilliantly and this means great news for consumers. Hopefully, the industry will segment its offering and give a wider choice to listeners.”
Anil Mehra, group finance director, Living Media, said, “Even though the bids varied, we believe that the total revenue accruing to the government is as per
their expectations.”
According to A P Parigi, MD and CEO, Entertainment Network (India) Ltd, which owns the Radio Mirchi brand, “Government policy does not allow for players
to be present in two stations and hence the company was not eligible to bid for the other stations. The bids have been extremely rational. The shift from
fixed licence fee to revenue share model in Phase II policy will result in more viable radio business models and the bid values are favourable enough to
drive growth for the FM industry.”
Radio Mid-Day West, a new venture in association with BBC Worldwide, won six frequencies out of the nine it had bid for.
The AIB is holding a Regional Media Leaders Forum in New Delhi, India, on 14 February.