New Delhi: Broadcast and telecom regulator TRAI today (Aug 11, 2004) recommended a revenue share model with a one-time entry fee for the new FM radio broadcasting licences to be issued to private players in the second phase.

TRAI (Telecom Regulatory Authority of India), which was entrusted with the task early this year, suggested a revenue share of four per cent of the gross revenue.

It also recommended migration of Phase I licencees to the Phase II regime in case they were successful in the bidding for the second phase.

On another contentious issue of allowing news and current affairs programmes on private FM radio, TRAI favoured maintaining the current restrictions.

"It has been recommended that the existing restriction on news and current affairs be reviewed by the Government and be lifted after incorporating adequate safeguards," it said.

Elaborating on the migration clause, TRAI suggested that migration to Phase II conditions be permitted for Phase I licencees provided they pay all dues, withdraw all pending litigations and not be in default of any licence condition.

On other categories of Phase I participants, it said they should be permitted to bid in Phase II provided they clear all dues and withdraw all pending litigation.

Further it said, "The operators who wish to migrate to Phase II should be allowed to bid for Phase II and allowed to migrate to the Phase II conditions from the start of the financial year in which the LOI (Letter of Intent) is given. If unsuccessful, they could be given the option of terminating with one months notice (instead of 12) or continuing with Phase-I."