Thursday, April 19, 2012

The Telecom Regulatory Authority of India recommends minimum channel spacing for FM radio; Industry opposes the proposal

MUMBAI: The Telecom Regulatory Authority of India (TRAI) has today released the recommendations on “Prescribing Minimum Channel spacing, within a License Service area, in FM Radio Sector in India.” 

The frequencies for FM Radio channels within a license service area may be released with a minimum spacing of 400KHz. 

A Trai press note said that the FM channels, operating with channel spacing of 400KHz, should be radiated from effectively co-located sites and transmitted with equal power. The exact allocation of frequencies may be done taking into account the frequencies and power of the existing setups/already allocated frequencies in the adjacent license service areas so that the criteria for frequency re-use are satisfied. All the future planning of allocation of frequencies and development of the infrastructure should be done accordingly. 

With A and A+ cities demanding more FM channel even after the announcement of the Phase III guidelines, Trai had sought the opinion of stakeholders whether it would be acceptable if the minimum channel spacing within a license service area can reduced from the current level of 800 KHz. 

The ministry of Information and Broadcasting had requested Trai to reconsider the issue of minimum channel spacing within a license service area in the FM radio sector. The minimum channel spacing i.e. the frequency separation between the adjacent channels’ carrier frequencies is an important parameter which determines faithful reception of individual channels at the listeners FM radio receiver set. With the improvement in the quality of Radio receivers, penetration of digital services such as mobile sets among the masses and alternate designs of the FM Radio transmitter setups, it is now technically feasible to transmit more FM Radio channels with reduced channel spacing in a given license service area. 

All FM operators except Radio Mirchi, have cited cost escalation, devaluation of current radio business and negative impact on the quality of sound of current stations as the reasons for not supporting the move. Those who have not supported the proposal are FM arms of media houses like HT Media (Fever FM), TV Today Network (Oye FM), Next Media Works (Radio One) and Music Broadcast (Radio City). 

Speaking in support Radio Mirchi said, “The TRAI’s recommendations on Phase III and minimum channel spacing of FM radio are progressive in nature and if they are accepted by the Government in spirit, it will mean rapid proliferation of private FM radio on a far larger scale than what we have seen in Phase II – reaching out to the fringe populations of our country. In light of this, our submission is that the operating control of the private FM radio companies should vest with Indian companies and Indian citizens. Foreign controlling ownership, i.e. equal or greater than 25% would mean that editorial and content control no longer rests with Indian citizens.” 

Justifying its stance against the proposal Radio City said, “All existing broadcasters have license periods for 10 years. Under the Phase III policy, the new broadcasters will be granted license of 15 years. The survival of the existing radio industry is critical and with this differentiation in the license term the value of the existing broadcasters will have a huge adverse impact. The present radio broadcasters have immensely contributed towards the development of society and such discrimination will be detrimental towards the interest of the existing broadcasters. Additional frequencies will lead to multiple channels in cities wherein the current players are struggling to break-even. The cost of running a station is very high and with decreasing revenues, the radio industry will become unviable.” 

“ Implications of reducing will mean new licenses will have 15 years and existing players will have 10. This will kill market share and valuation of existing players. Only way to allow this is if existing players are given co terminus of 15 year license with new players. Only then it’s a level playing field. Existing players will determine success or failure of phase 3. It is not likely that many new entrants will be there given the economic slowdown,” said Radio One.

(Source : Radioandmusic)

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