Govt changes its frequency on FM news, broadcasters crackle

New tack despite an earlier statement that these stations could carry news other than AIR bulletins

The ministry of information and broadcasting has informed radio stations that only All India Radio (AIR) news will be allowed on air. News gathered by the Press Trust of India will not be allowed on private FM channels as the government readies to auction licences in smaller cities.

Minister of State for Information and Broadcasting Prakash Javadekar had said he did not see any reason why private FM channels should not carry news other than AIR bulletins. This had raised expectations that rules would be eased for news on private radio stations.

"There is not much value addition in broadcasting AIR news bulletins. Content and execution on private FM channels are distinct from AIR and there is a mismatch. Also, when stations have synergies with publications and news channels, why should they be made to parrot what the state broadcaster is saying?" Prashant Pandey, chief executive of Entertainment Network India, the company that operates Radio Mirchi, said.

STATIC

• News gathered by the Press Trust of India will not be allowed on private FM channels as the government readies to auction licences in smaller cities
• The government had said it did not see why channels should not carry news other than AIR bulletins
• The  government said the 3rd round of auctions for new channels would take place by November

Entertainment Network India is part of Bennett Coleman & Company while My Fm is owned by DB Corp and Red FM is run by the Sun group.

"News is relevant when it can be analysed in the context of listeners and if that is not allowed, why carry AIR news? We will get more traction from our content strategy than carrying AIR bulletins," an executive with another private radio station said on condition that he not be named.

On television, state-run Doordarshan's viewership in news is low because of English and other language news channels. In a meeting with executives of private radio stations on Thursday, Information and Broadcasting Secretary Bimal Jhulka said the third round of auctions for new channels would take place by November. The pre-qualification advertisement will be released by the ministry by September.

In these auctions, 839 frequencies in 294 smaller cities will be sold. In the metros, Kolkata has no frequency on sale, Mumbai has two, and Chennai and Delhi one each. These auctions will help private radio companies to broaden their reach. The industry estimates the metros contribute around 60 per cent of the total radio advertising revenue.

"The auctions will help us increase our footprint and rope in more local advertisers. Many national advertisers stay away from radio but local advertisers see its merit," said Apurva Purohit, chief executive of Radio City. She added advertisement revenue in radio was the sum of that earned by each station and more of them would contribute to growth in earnings.

Jhulka said an e-auctioneer had been finalised and the ministry was working with it. A ministry representative would supervise the auction, she added.