The Telecom Regulatory Authority of India (Trai) has attempted rationalisation of foreign direct investment (FDI) in the media sector by recommending a 26% cap for private FM radio companies.
Wants the ceiling to be upped to 26%
NEW DELHI: The Telecom Regulatory Authority of India (Trai) has attempted rationalisation of foreign direct investment (FDI) in the media sector by recommending a 26% cap for private FM radio companies, in case they transmit news and current affairs programmes.
This is in sync with news channels being allowed to have up to 26% FDI. For those FM companies focussed only on music and entertainment, the FDI cap will be much higher at 49%, according to the Trai recommendations issued on Friday.
The recommendations are for the third phase of FM radio privatisation, but will apply to the existing 200-plus stations also.
Currently, there’s a 20% FDI cap for FM radio companies. Also, private FM companies are not allowed to transmit news and current affairs programmes at all.
However, if the government agrees to accept the Trai recommendations, news would be allowed on private FM stations, and FDI cap, too, will be increased.
Even though Trai was meant to look only at the ‘carriage’ aspects of broadcasting and not content, recently, the information and broadcasting (I&B) ministry had sought the regulator’s views on allowing news and current affairs programmes.
The regulator has recommended news for private FM stations, but with several riders.
For instance, FM radio channels can transmit news by taking content from All India Radio, Doordarshan, authorised TV news channels, and news agencies like PTI and UNI.
No other source of news would be permitted, Trai has said.
Also, broadcasting of news content having speculative, anticipatory or those based on rumours/hearsay would not be permitted, Trai has said.
However, there should not be any restriction on traffic bulletins and results of international games such as cricket scores, the regulator has stressed.
Further, the I&B ministry would come out with guidelines to ensure that news broadcast may not negatively impact the general law and order situation of the area.
Among the other Trai recommendations, private FM radio companies would be permitted networking of programming within their networks, co-location of successful bidders would be mandatory, and the geographical basis for private FM radio bidding may be changed from city to district.
The government had been talking of rationalising FDI levels across the media segments for quite some time now. The FDI cap varies from 20% to 100%, across the various media segments.
This had resulted in stakeholders seeking parity. Even allowing news and current affairs on private FM radio has been a consistent demand of the media industry. At present, news is allowed in government-owned All India Radio.
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