The government is readying a policy that will regulate the sector and also throw the satellite radio space open to multiple players.
NEW DELHI: The government is readying a policy for satellite radio that will regulate the sector and also throw the satellite radio space open to multiple players.
Currently, only one satellite radio player, the Washington DC-headquartered WorldSpace, operates in the country, but there are no norms or guidelines for the sector yet.
“We will formulate a policy on satellite radio soon. After that, any number of players can start such a service,” said an official in the information and broadcasting (I&B) ministry.
Some media majors, including the Sun group, have already indicated their interest in the satellite radio platform. With more players joining in, there’s bound to be competition in the radio segment.
But, representatives of private FM radio (a sector which is witnessing much action) argued that “satellite and FM radio can co-exist, provided there’s level playing field in terms of policy”.
To formulate a policy for satellite radio, which is often described as a parallel to direct-to-home (DTH) television and runs on subscription fees as per the stations one opts to have, the government may take into consideration the recommendations made by the Telecom Regulatory Authority of India (Trai) in June 2005.
WorldSpace India, a 100% subsidiary of WorldSpace Corporation Inc, had entered the country through the FIPB route in the year 2000 to carry out software programming activities in India, among other functions.
The country receives satellite radio signal through WorldSpace’s AsiaStar satellite, and it is uplinked from Singapore
Although the initial years were sluggish for WorldSpace in India, it picked up pace recently. At the end of the first quarter of 2006, the company reported 1.11 lakh subscribers in India, up 50% from 74,574 at the end of the fourth quarter of 2005.
According to an analyst on the radio industry, satellite radio is not a threat to FM radio. While FM radio is advertising-driven, satellite radio is subscription-driven, he pointed out. A bigger threat is perhaps from iPod and cellphone, he added.
Radio Mirchi COO Prashant Panday agreed. “I don’t believe there’s a threat to FM from satellite radio,” he said.
The two will always remain different because of the difference in technology between the two. To receive satellite radio, you need special equipment, for instance.
There may be competition in listenership, but not in terms of revenues, Panday argued, citing the difference in revenue models between them.
On the whole, “the two can co-exist, if there’s level-playing field,” he said.
Sources in the radio industry said the government needs to rationalise rules across all segments (FM and satellite radio), whether it pertains to FDI, allowing news and current affairs content, licence fee or royalty payment.
Meanwhile, Trai recommended a licensing policy, application of AIR programming and advertising codes, allowing news and current affairs and uplinking from India for satellite radio.
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