The Telecom Regulatory Authority of India (Trai) has given its approval to the recent decision by the GoM, headed by finance minister Pranab Mukherjee, on e-auction of FM Phase-hree licences on the lines of 3G telecom licences auction.
The decision has been given the green signal in an effort to provide more transparency to the process of allocation of licences to FM operators. With the approval of the Trai being received the FM Phase-three auction process is likely to begin soon, sources said.
Official sources stated that a letter was received by the Union information and broadcasting secretary Raghu Menon from the Trai stating that the decisions of the GoM has been accepted. “In the context of successful conduct of auction for allocating 3G spectrum in 2010 and the recommendations of the GoM, the Trai would have no objection regarding the adoption of 3G ascending e-auction methodology for awarding licences for FM Phase three,” the letter stated.
The Trai has also suggested that the ministry ensure that all related administrative issues are addressed while finalising the procedure of e-auctioning. In addition, the Trai has accepted the GoM recommendation that reserve prices for new channels be based on the actual prices received during the second phase for comparable cities.
In a major relief to FM broadcasters, the authority has also accepted the GoM proposal to increase the permission period of licences to 15 years from the present 10 years, official sources stated.