MUMBAI: This news might come as a respite for the radio industry awaiting Phase III from the past three years and the fraternity is welcoming the move with open arms, although with a sense of uncertainty at the turn of events.

Reliable information and broadcast ministry sources reveal that the Phase III policy draft has reached the policy directorate and might move up to the joint secretary early next week. According to the hierarchy, the file might reach Information and Broadcast Minister Ambika Soni after 20 days. Sources further mentions that if the draft is approved, Phase III rollout might commence by April end. However, if any amendments are suggested by the Minster, the draft will again reach policy directorate.

Sources go on to mention that the key issues like Prasar Bharati rentals and music royalty are addressed in the Phase III draft. Radio broadcasters have been vocal about the high rentals charged for Common Tower Infrastructure (CTI) draining their profitability. Some corrections like a fixed rate acceptable to both the radio and music industry claim sources, has been made on the lingering music royalty front.

Among the recommendations by the radio industry, the ministry is unlikely to consider the appeal of extending the license period from the current ten years to fifteen, discloses sources. The ministry is not considering the extension at this stage but is likely to think over it post Phase III. On the news and current affairs front, the ministry is likely to stick to its guns of offering only agency news to the broadcasters.

The industry is however, clueless about the Phase III developments  BAG chairperson cum managing director Anurradha Prasad says, There have been talks about Phase III happening in April but how much truth it holds is questionable. The radio industry has been resisting entering into Phase III until key issues are sorted out, so this seems unlikely at the moment....

Similarly, Radio Mantra director Rahul Gupta says, It is doubtful that broadcasters would participate in Phase III till music royalty gets sorted out. The business becomes unviable for players in smaller towns as they pay huge share of their revenues towards royalty. Phase III focuses in the interiors, so there needs to be clarity on royalty front....

At the Ficci Frames conference held in Mumbai over the last week, Ambika Soni was posed a question on the FM radio expansion in smaller towns and cities to which she said, The Phase III policy is just awaiting government approval and process of reaching out in smaller towns might begin soon....

Conflict of information from the ministry and radio broadcasters is only making things complicated on the Phase III front. All the broadcasters can do now is tune into the development on the FM expansion plans.

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