FM Broadcasting in India

FM Broadcasting In India

The first FM broadcasting in India was in the year 1977 at Madras. In the mid-nineties, when India first experimented with private FM broadcasts, the small tourist destination of Goa was the fifth place in this country of one billion where private players got FM slots. The other four centres were the big metro cities: Delhi, Mumbai, Kolkata and Chennai. These were followed by stations in Bangalore, Hyderabad, Jaipur and Lucknow.

Times FM (now Radio Mirchi) began operations in 1993 in Ahmedabad. Until 1993, All India Radio or AIR, a government undertaking, was the only radio broadcaster in India. The government then took the initiative to privatize the radio broadcasting sector. It sold airtime blocks on its FM channels in Indore, Hyderabad, Mumbai, Delhi, Kolkata, Vizag and Goa to private operators, who developed their own program content. The Times Group operated its brand, Times FM, till June 1998. After that, the government decided not to renew contracts given to private operators. In 2000, the government announced the auction of 108 FM frequencies across India.

Radio City Bangalore is India's first private FM radio station and was started on July 3, 2001. It launched with presenters such as Rohit Barker, Darius Sunawala, Jonzie Kurian and Suresh Venkat.

Indian policy currently states that these broadcasters are assessed a One-Time Entry Fee (OTEF), for the entire license period of 10 years. Under the Indian accounting system, this amount is amortised over the 10 year period at 10% per annum. Annual license fee for private players is either 4% of revenue share or 10% of Reserve Price, whichever is higher.

Earlier, India's attempts to privatise its FM channels ran into rough weather when private players bid heavily and most could not meet their commitments to pay the government the amounts they owed.