Radio Companies To Mobilise R1,000 Crore For Expansion

New Delhi: Even as markets continue to remain jittery on weak global cues, a 100-day countdown has begun for the radio firms, including ENIL (Radio Mirchi), RBNL (Big FM), MBPL (Radio City) and South Asia FM, to mobilise around R1,000 crore to bid in the first round of e-auction for the third phase of FM radio expansion (FM-III). It is learnt that at least 40 channels in top 30 towns will go for e-auctions in the first round, along with 33 stations in Jammu and Kashmir and the North-East. The first batch of stations will be in those towns which are already exposed to private FM radio services. Therefore, they are expected to see stiff competition between radio firms, resulting in cost escalation. This is because the FM-III policy allows operators to own more than one station in a town.