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Currently, FM players pay annual licence fees, which go up by 15 per cent every year. Private FM radio sector would shift to a revenue-sharing model from the existing licence fee regime. However, revenue-sharing also exists in the media sector. The objective is to “make FM radio a success story”. It's better to keep the revenue-sharing low than to have a failed project. There has been debate on whether to recommend a revenue-sharing structure or a fixed amount for a period of 10 years; it is firm on revenue-sharing now. Revenue-sharing will follow payment of a one-time entry fee through a process of bidding. Revenue-sharing is quite low at around 4 %.

While the private FM players had sought revenue-sharing in the band of 2-2.5 per cent, the panel has fixed it at 4 per cent.

Setting up new radio stations

After the second round of privatization, the number of FM radio stations targeted is around 300 to 400. The panel also suggested that players wanting to enter the sector in the second round of licensing need to have a technical viability clearance by a financial institution on the financial viability of the project. It has also recommended to the government to release additional spectrum for the use of FM radio companies so that the number of companies operating in one centre can go up.

Future of Radio Industry

FM Radio can play its part in building a stronger business future for India. Providing free-to-air local broadcasts of music and entertainment, helpful information - traffic advisories, community announcements and public service messages provide a real value-added service. But at current levels of advertising support, each radio station is reeling under the brutal financial impact of high costs. With more players in the fray the FM radio industry would grow and also enhance the government's yield from licensing radio naturally.

The new India deserves an active private FM radio sector. It can provide a level playing field with benefits for listeners, for advertisers, employment & career options. Spearhead the government objective of growing the FM radio business in India.

With the government ready to reduce the license fees it will help in attractingnew palyers like reliance which had earlier backed out only due to the entry fees.also government allowing foreign players to enter he Indian market it will help the industry grow. Virgin group has already started exploring the Indian market for suitable partners. various radio stations are coming up with IPO for example Radio Mirchi thus helping them expand.

The future looks bright as the reach of radio is expected to raise post the increase in the number and quality of players in the industry. It is on the basis of these key drivers of growth, it is being predicted that radio's share in the total advertising pie will see an increase in the medium term. There are an estimated 150 million radio sets across the country. The Rs 1.6 billion industry is reported to be growing by 31 per cent every year and should touch the Rs 6.2 billion by 2007, with revenue rising at 23 per cent annually. Also, though radio has only a 2 per cent share in the Rs 6,000 crore I本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。