Starting an FM Radio Station in India
To start an FM radio station in India, you need to obtain a license from the Ministry of Information and Broadcasting. The process takes up to 2 years. The cost ranges from Rs. 1.5 million to Rs. 8.5 million. You need to invest in broadcasting equipment like transmission towers and broadcast consoles. The cost varies depending on the station size.
Eligibility Criteria
Only Indian companies can bid on 338 channels in 91 cities. Each company can bid for just one FM station per city. The total channels allotted to a company cannot exceed 15% of all channels in India. Foreign investment up to 26% is allowed under government approval route.
Financial Considerations
- Royalty payments are negotiated through a legal agreement.
- They are paid regularly by licensees to rights owners.
- Payments are often a percentage of revenues.
Promoting a song to radio stations can cost $100,000-$125,000. Songwriters get royalties for their work.
Ham Radio License
To get a ham radio license, anyone above age 12 can appear for an amateur radio exam conducted by the Wireless Planning Commission. There are 2 license grades: General and Advanced. The Advanced license allows using 400W power on select frequencies. You need to pass a Morse Code test for the Advanced license. The license is valid for life.
Online Radio Station setup
With the right license, you can start an online radio station with equipment costing less than $15,000. Monthly operating expenses may be under $1,000. Main costs are talent, music rights, streaming, and marketing.
Digital Radio
The private sector in India may soon get licenses for digital radio using the FM band. This will allow text news and broadcasts for the hearing impaired, similar to Indian TV.
Miscellaneous Information
- While setting up a community radio station costs approximately Rs 10-50 lakhs, a Commercial radio station requires at least Rs 1 cr.
- Licensing enhances and reinforces brand equity.
- FM Radio has expanded by opening 338 licenses for investment.
- OTT Platforms give creative freedom allowing cater to audience needs.
- Under FEMA Act, FFMC registration allows the company to undertake money changing activity when authorized by the RBI.