The FIPB in the finance ministry, will take up the proposal of satellite radio service provider WorldSpace for providing web-based services.
The Foreign Investment Promotion Board (FIPB), in the finance ministry, will on Monday take up the proposal of satellite radio service provider WorldSpace for providing web-based services.
The FIPB application assumes importance as radio firms, including WorldSpace, have been keen to offer online radio service in India for long. In fact, in 2007, in a tie-up with MSN India, WorldSpace had started offering five music channels at a subscription fee, but had to halt the service after a few months.
At that time, WorldSpace claimed that its online radio service was being revamped. Now, the Indian subsidiary of the Washington DC-headquartered satellite radio firm is seeking government approval to offer a full-blown online service.
On the satellite platform, it offers 34 channels.
FIPB had for the first time taken up the WorldSpace application for a web-based service on October 24, 2008, and then again on January 9, 2009. Both times, the Board had deferred taking a decision on the issue.
At this point, WorldSpace India is awaiting a new satellite radio policy. So far, there’s only an FM radio policy, but satellite radio has been operating in a no man’s land as far as government legislation is concerned.
Also, while FDI ceilings exist across the media segments, there’s none for satellite radio. WorldSpace is the only satellite radio service provider till now.
It is learnt that WorldSpace has sought a timeframe of five years from the government for complying with the new rules, including that on FDI cap, once the new licensing regime comes into force.
The government is likely to ask the company to adhere with the new rules within three years, sources said. It is learnt that satellite radio would have an FDI cap of 74%, which means that WorldSpace would have to divest 26% in favour of Indian investor/s.
The Union Cabinet is expected to take up the satellite radio policy soon after the new government takes office.
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