Public sector broadcaster Prasar Bharati is set to expand All India Radio’s FM operations to 210 new cities and towns. That would make it the largest player in the space. It would then have operations in as many cities as all the private FM operators put together would operate in even after the third phase of auctions. At present, Prasar Bharati operates FM stations in 100-odd cities.

The national broadcaster has firmed up an investment plan of Rs 2,000 crore to build the necessary infrastructure and will soon forward a plan to the government for clearance. A senior Prasar Bharati official said, “We require an allocation of around Rs 2,000 crore to expand AIR’s FM operations. The government has recently approved the policy for phase-III FM expansion. We want to be present in all the places where private operators would function.”

Prasar Bharati has already written to the chief secretaries of all states for the allocation of land to set up new stations. “As soon as the approval comes, we'll begin work to set up the necessary infrastructure,” he added.

Earlier last month, the government set the ball rolling to dole out 839 licences in 227 new cities and towns to private operators under phase III of the FM radio policy. At present, the radio industry in India, which has 36 FM radio operators, is estimated to be valued at Rs 1,200 crore. With the added inventory coming in over the next three to four years from the new stations, the segment size is expected to double by 2015. Currently, FM stations are in operation in 86 cities. So, they will be available in 313 cities and towns in total.

AIR’s network of medium wave, short wave and FM stations accounts for a 35 per cent share of the Rs 1,200 crore annual advertising revenue generated by the radio industry. This revenue raked in is the largest for any single entity —including that collected by private media networks —in the radio business. Industry observers say if AIR does not set up its own stations in the towns marked for private FM radio firms, it may lose its dominant market share in the country’s overall radio business.

Another official said: “We'll be airing entertainment content in local languages on the new channels. AIR Rainbow and FM Gold will also be launched in the new cities, they have been popular with our listeners. We are also looking at developing programmes which would preserve the local musical heritage of those places.” The new channels would have news bulletins, unedited content from which would be shared with private radio operators as has been mandated under the phase-III FM expansion policy. AIR on Friday has a network of 237 broadcasting centres, with 149 medium frequency (MW), 54 high frequency (SW) and 177 FM transmitters.

AIR’s network covers 91.85 per cent of the country's geographical area, and reaches 99.18 per cent of the population

The new channels would have news bulletins, unedited content from which would be shared with private radio operators as has been mandated under the phase-III FM expansion policy.

AIR on Friday has a network of 237 broadcasting centres, with 149 medium frequency (MW), 54 high frequency (SW) and 177 FM transmitters. AIR’s network covers 91.85 per cent of the country's geographical area, and reaches 99.18 per cent of the population.

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