Capitalising on the government’s strength to stay in competition with the private FM radio broadcasters, public broadcaster Prasar Bharati has sought free land from all state governments to set up its own 500 AIR FM channels (two per city) in over 250 towns. The idea is to operationalise AIR’s FM radio stations before the private media firms launch their own FM stations after the government cleared third-phase expansion of private FM radio policy recently which envisages setting up of 839 FM station across 313 towns.

According to Prasar Bharati sources, if All India Radio (AIR) does not set-up its own stations in the towns marked for private FM radio firms, it may lose its dominant market share of the country’s R1,000 crore radio business. According to one estimate, it may require a total of over 150-200 acre (1-2 acre per station) to expand the network of AIR FM stations which will then take on the private FM firms.

Currently, AIR network of Medium Wave, Short Wave and FM stations command over 35% of the R1,000 crore annual advertising revenue generated by radio which is the largest revenue earned by any single entity including the private media networks.

“We have written to the chief secretary of all states asking for the allocation of free land to set up AIR FM stations. We plan to operationalise AIR FM stations in 227 new cities where private FM stations will come up after FM-III auctions,” a top Prasar Bharati official told FE.

The government has already sanctioned R140 crore for Prasar Bharati to set up 100 FM transmitters in as many towns under the 11th Plan. However, land acquisition continues to be a practical hurdle in expanding the AIR’s FM radio coverage, sources in Prasar Bharati said.

“We do not know exactly how much land and in how many cities will be required. However, we have urged the various state governments to allocate land to set up AIR’s FM stations. We should get the required land soon,” a senior government official said. On the contrary, the private FM radio networks have generated their own funds to obtain the necessary licences but also require money for setting up of offices.

According to analysts, under FM-III the private operators may have to infuse R3,500 crore-4,000 crore for expanding their networks.

“We will launch AIR Rainbow and AIR FM Gold channels in each of the new cities marked under FM-III policy. AIR FM channels are extremely popular as they are also carried on the medium wave networks in various centres. Apart from entertainment in local languages, it will also generate employment and other opportunities for the state governments and therefore we are confident of getting the land at zero cost,” the official said.

Once both private and public FM stations are operational, India may get over 1,500 FM stations, thereby making it the largest FM stations in the region.

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