Date:30/11/2005 URL: http://www.thehindubusinessline.com/2005/11/30/stories/2005113001220800.htm

Back Star Group keen to enter FM radio biz

Our Bureau

New Delhi , Nov. 29

THE Star Group on Tuesday, reiterated that it is keen on entering the FM radio business but said a decision on prospective partners would be based on how many licenses they get and the content plan.

On the sidelines of the India Economic Summit, the Star Group Chief Executive Officer, Ms Michelle Guthrie, said the group was looking at entering the private FM radio sector in India.Mr Peter Mukerjea, CEO, Star India, said "We are interested in the private FM radio sector and will be entering it by picking up equity in one of the successful bidders of the second phase of licensing. However, we have to see for how many cities they have got licences and their plans for content, among other factors."

Currently, foreign direct investment (FDI) norms permit 20 per cent in the FM radio sector. Foreign players such as BBC and Germany's international broadcaster, DW, have already expressed interest in the segment.

On the direct-to-home (DTH) venture with Tata Group, Mr Mukerjea said the company is waiting for clearances from the Communications Ministry.

Meanwhile, at the seminar, Ms Guthrie said there is inconsistency in the regulations of various technologies. "There is no reason for different FDI limits," she said. The Government needs to recognise the value of the media industry. The Indian economy has not unlocked the value of the media sector. While this sector accounts for 5 per cent of the GDP in the US, in Indiait accounts for just 1.5 per cent, Ms Guthrie added.

Sir Martin Sorrell, Group Chief Executive, WPP, said India should encourage investments in creative BPOs. Special media zones should be created for this. He said public sector companies should not be forced to route their advertising through DAVP alone.