[HCDX] FM round III: I&B to sell 700 more frequencies in India

[sakthi vel <ardicdxclub@xxxxxxxxxxx>]

India to join exclusive club of nations with over
1,000 FM stations

Even as the second round of FM radio rollout across
the country is nearing closure, information and
broadcasting (I&B) ministry is readying the blueprint
for FM III that will offer over 700 frequencies - the
largest offering ever put on the block - beginning
mid-2007. 
Closure of FM III will place India in the very
exclusive club of countries that have over 1,000 FM
stations, just a tad behind the world's largest FM
radio market, US, which has 1,424 private FM stations.

The third phase is expected to generate over Rs 3,000
crore as one time entry fee to the government,? an
industry source said. The I&B ministry is likely to
follow the same bidding process for FM III as it did
for FM I and FM II, sources told FE. The government
collected Rs 1,134 crore from 337 frequencies in FM
II, of which letters of intent have been issued for
262 stations. With third phase being planned, a number
of existing radio companies will benefit as it will
reduce the average bidding price for smaller cities.
?FM-III will also help in reducing the cost of
constructing the common infrastructure in various
cities as more players will get the licence for
operation,? sources pointed out. 

But the question before the industry is: How many FM
stations can be accommodated in a single city?
According to the Wireless Planning & Coordination Cell
in department of telecommunications (DoT), 88-100 MHz
and 103.8 to 108 MHz are specifically identified for
private FM radio broadcast services in India. ?For
technical reasons, there has to be a separation of 800
KHz between two FM frequencies. In theory, between
88-100 MHz and 103.8 to 108 MHz, more than 25 FM
stations can work in a single city,? a source from FM
industry explained. 

Under FM-I and II, not more than 4-6 stations were
allocated in a single city. The third-phase is
expected to involve the 90 cities, which were covered
in FM-II as well and add another 55-65 new cities, the
sources added.
+++++++++++++++
Source:http://www.financialexpress.com/fe_full_story.php?content_id=135363
+++++++++++++++
Jaisakthivel,
Chennai.
+++++++++++++++


		
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