The third phase of FM radio licensing across 230 smaller towns appears to have run into a roadblock. It is feared that a large number of the 790-plus FM frequencies for this expansion will not be able to function due to their close geographical proximity to neighbouring towns resulting in interference in radio waves.

The viability of FM radio in smaller towns is also questionable, as revenues may not justify expenditure on license cost and music royalties. There is need for music royalties to be charged based on format, revenues, and number of listeners and this requires give-and-take approach by both broadcasters and content providers.

The Government may be well advised to reduce the number of towns in this phase of expansion from 230 to a smaller number where radio frequency issues can be addressed. The selected towns should also be viable from an advertising revenue point of view.

The Ministry of Information and Broadcasting may receive an increase in plan outlay in the forthcoming budget to ensure that public broadcaster Prasar Bharati meets its broadcast obligation for coverage of the Commonwealth Games 2010, including an international media centre. It is expected that Rs. 1000 crore will be the budget allocation for Prasar Bharti for 2010-11, up from Rs. 800 crore in the previous year, but below the anticipated Rs. 1600 crore.

The DTH market is expected to grow at an average rate of around 30 percent reach to an estimated 50 million homes by 2014. Three new DTH operators started service in this year doubling the available option of service providers for DTH users. This unprecedented jump has caused a shortage in satellite transponder capacity. With the 2010 commonwealth games, HD transmission will begin in India and HD content needs six to eight times the transponder capacity of any average standard definition channel. With launch of HD services the transponder shortage will become acute.

Convergence India 2010 Expo will be held between March 23–25, 2010 in New Delhi. The event will highlight trends, challenges, and opportunities in the global ICT industry. We invite you to visit the Broadcast&CableSat booth at the show.