[ Sajith M ]

Rediff says:

Satellite radio service may get costlier for consumers once WorldSpace, the only satellite radio company in the country, is asked to pay license fee as well as share up to 20 per cent of its annual revenue with the government.

According to sources, the draft satellite radio policy includes imposition of a one-time entry fee for satellite operators, up to 20 per cent revenue-sharing arrangement with the government, a 26 per cent cap on foreign direct investments for broadcasting news and current affairs.

This move is seen by industry observers as a step from the government to boost the expansion of the private FM radio network. The broadcast of news and current affairs is still not allowed on private FM radio.

Even the radio forum of industry body Ficci has asked the I&B ministry to promote private FM radio over satellite radio.

So what’s up with the I&B ministry asking for a revenue share? FM uses frequency bands that (unfortunately) is something that the government owns, but as far as I know even though satellite radio uses frequency bands, these are not part of the spectrum that the government owns. So what is the basis for this (yet another) wonderful proposal from the I&B ministry - siding with existing FM players and killing the new medium? Or pure greed?

Posted under: Technology
Tagged with: Satellite radio, WorldSpace