Shares of seven radio operators rose by 0.65% to 17.12% at 15:33 IST on BSE after the Union Cabinet approved conducting FM Phase-III auctions and renewal of private FM radio licenses from Phase-II to Phase-III.
Entertainment Network (India) (up 17.12%), Sun TV Network (up 11.33%), Next Mediaworks (up 9.82%), TV Today Network (up 5.15%), HT Media (up 4.75%), BAG Films (up 4.13%) and DB Corp (up 0.65%), edged higher.
The S&P BSE Sensex was up 46.34 points, or 0.17% at 28,121.89.
The Union Cabinet chaired by the Prime Minister, Narendra Modi, today, 16 January 2015, gave its approval for conduct of FM Phase-III auctions and migration (renewal) of Private FM Radio licenses from Phase-II to Phase-III in 69 existing cities for 135 channels. This will be on an ascending e-auction basis. Approval was also given to migration (renewal) of private FM Radio licenses from Phase-II to Phase-Ill on payment of migration fee according to TRAI (Telecom Regulatory Authority of India) recommendations.
As of now, with the implementation of two phases of private FM Radio, namely Phase I (1999-2000) and Phase II (2005-06), there are 243 private FM channels in operation in 86 cities of the country, spanning 26 States and 3 Union Territories, the statement issued by the government said.
The auction process will add an estimated revenue of over Rs. 550 crore to the National Exchequer on successful auctions of all proposed channels. Besides, it will beget the amount realized through the migration process which is dependent on the TRAI recommended formula, where migration fee is linked with the discovery of market prices through the FM Radio Phase III auction, the statement added.
Roll out of the first batch of FM Radio Phase III auction will provide more channels to listeners with richer content in 69 existing cities, it said.
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