Many stakeholders caution against grant of community-radio licence to not-for-profit firms

Concerns arise over CR being used for creating communal disharmony

October 13, 2022 10:07 am | Updated 10:07 am IST - NEW DELHI

Several respondents to a Telecom Regulatory Authority of India (TRAI) consultation paper on ‘Issues Related to Community Radio Stations (CRs)‘ have cautioned against granting CR licences to not-for-profit companies established under Section 8 of the Companies Act, citing various reasons.

Following an Information & Broadcasting Ministry letter in November 2021, seeking TRAI recommendations on the proposed amendment in the CR policy guidelines, the regulatory body had on July 21 circulated the consultation paper inviting response from the stakeholders on eight issues. Among them were queries about Section 8 companies, licence period and duration of advertisement on CRs.

Asked if Section 8 companies be permitted to establish CRs, the Community Radio Association (CRA) said the existing guidelines already included such entities. However, it suggested that their screening committee should have representatives of all the stakeholders and the process should be representative, transparent and democratic. The applicants needed to be subjected to a rigorous scrutiny.

Stating that many CRs supported the idea of including the Section 8 companies, the CRA said they felt it would aid faster growth of community radios, give an opportunity for CRs to be set up in “media dark” remote districts, and provide more professional broadcasting services with funds and constant sustainability. However, it added, some CRs were against it.

The Association of Radio Operators for India (AROI) advised against it, stressing that Section 8 also had in its ambit “companies formed for promotion of a religion”. Though not for profit, the CR run by such a company might potentially be used for creating communal disharmony. Monitoring broadcast content of such CRs, particularly in difficult terrains, etc. could be a practical challenge and an administrative headache, it said.

The body said the spectrum, a scarce resource, was being given to CR owners at minimum cost. Allowing Section 8 companies the licence could lead to the foundations run by big businesses entering the sector. Such entities were allowed to amalgamate with other companies having similar objects, and this might result in the transfer of licence benefits to a bigger company, thereby circumventing its non-transferable nature.

Stating that the existing provision seemed to allow the entry of Section 8 companies, the UNESCO Chair on Community Media at University of Hyderabad suggested that their screening process should be more democratic, transparent and multi-stakeholder oriented. It said at least a third of the participants in its meeting expressed doubts about widening the scope for including such entities. While many felt that the move might dilute the CR objectives, they were also of the view that if the companies started garnering frequencies, there might be nothing left for community-based organisations and NGOs.

The Entertainment Network India Limited seconded most of the AROI observations, while the Consumer Protection Association (CPA) said the Section 8 companies could be granted licences with cautions and restrictions, pointing out that not-for-profit entities were not required to operate for the benefit of the public good. In its response, the Upbhokta Sanrakshan Samiti (USS) said there was no need to expand the scope as already the provisions permitted any non-profitable organisation registered under the Society Registration Act and the Trust Act.

Many stakeholders, including the CRA, AROI, CPA and the UNESCO Chair on Community Media, were in favour of continuing with the five-year licence term. “Peer review” of renewal/extension applications and performance review were also recommended.

The CRA and the UNESCO Chair on Community Media favoured increasing the current seven-minute per hour limitation for advertisements on CRs for their sustenance, whereas the AROI and the CPA were against it.

Currently, 356 CRs are operational in the country. As per the data provided to the TRAI by 52 CR operators, 16 were not broadcasting any advertisements, whereas 32 did it for five minutes or less per hour. Only three operators were broadcasting promotions for over five minutes per hour. Of the 52, 39 operators had a total revenue of less than ₹10 lakh.

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