MUMBAI: After facing a shock with the failure of 2G auction, the government is now treading carefully on its path leading to the upcoming FM Phase III auctions.
With a host of new issues cropping up every now and then, the fate of the much-delayed third phase of private FM radio expansion rests in the hands of a dedicated empowered group of ministers (EGoM).
While radio broadcasters are still cautious of the high reserve fee acting as spoilsport in the process, the government in its meeting held yesterday (26 Nov) at New Delhi discussed some important procedural issues pertaining to the auctions.
Speaking with Radioandmusic.com, a senior official from the ministry on condition of anonymity said, “Two procedural issues cropped up in the meeting yesterday. One was, if the existing radio players should be allowed to sign the Grant of Permission Agreement (GOPA) without charging any fee. Secondly, the government wanted to review the e-auction process and bring its cost down lower as compared to the 2G auction as it believes that radio as a medium does not fetch as much money as telecom.”
The EGOM is expected to convene on Thursday 29 November for a meeting to discuss the issues put forth by the government and decide on the future course of action.
Many industry insiders also point out that after the 2G fiasco, the government is now treading slowly and carefully in the run-up to the FM Phase III expansion. But inspite of the cautiousness, sources confirm that the auctions could be held anytime before March.
The roll out of FM Phase III expansion, in which 839 FM station across 294 cities will be auctioned, is already delayed by 14 months since the Cabinet approval in July 2011.