It will have a far-reaching impact on the cable and pvt FM industry.
After pending for nearly two years with the Ministry of Information and Broadcasting (I&B), the policy for the third phase of private FM radio and Headend In the Sky (HITS), a satellite-based cable distribution platform, is likely to take shape before the year-end.
The matter was likely to be placed before the Cabinet by early November, said I&B Minister Ambika Soni. “We will take HITS and phase-III of FM radio before the Cabinet by early November. I hope to get the Cabinet’s approval before the year ends,” Soni said.
The move will have a far-reaching impact on the cable industry, which covers over 80 million homes, as well as private FM radio, which covers around 25 per cent area of the country.
HITS will enable faster digitalisation of existing analogue cable distribution, enhancing the carrying capacity of existing cable wires (which carry 60-70 channels) by five to six times. It would also generate employment in the cable sector, said government officials. Several large cable companies like Digicable, DEN and Incable have expressed their interest in applying for a HITS licence once the policy is implemented.
At present, only WWIL, the cable company of the Essel group, has a licence for HITS. It has conducted trials in several towns. Availability of digital cable will give a wider choice to consumers at affordable rates in a transparent way, say industry experts.
The FM-III radio policy will pave the way for the rollout of nearly 700 additional FM radio channels, mostly in districts and very small towns. There are around 250 private FM radio stations, mostly in smaller and medium-sizes towns with a population of 5-10 lakh, apart from the metros.
“We want the third phase of FM radio despite some pressing issues like payment of royalty to the music industry, restrictions on broadcasting news and current affairs programmes, and restrictions on owning more than one FM station in a city,” said Uday Chawla, secretary general of the Association of Radio Operations for India, the apex body of private FM radio companies. The private FM radio sector has shown the fastest growth in recent times by crossing the Rs 850-crore mark in advertising revenue from less than Rs 400 crore three years back.
| What HITS means
HITS is a digital platform and can offer more channels than analog cable. It is a direct-to-operator service while DTH is a direct-to-home service. Under HITS, the cable operator downloads the signals and distributes them in cable homes. |
