Dinesh jain
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TV Today Network has got interim relief from
the Ministry of Information & Broadcasting’s (MIB)
demand for an additional migration fee of Rs 71.36 crore
(Rs 713.6 million) for migrating its radio stations from
Phase II to Phase III policy regime.
According to a source, the ministry had issued migration
fee payment notices to all FM radio companies for
migrating to Phase III regime. TV Today, which is already
locked in a legal battle with the MIB over the sale of its
FM radio business to Entertainment Network India Ltd
(ENIL), also received the migration fee demand.
The company made a representation before the ministry
stating that it should not have received the notice
demanding migration fee since the matter pertaining to
the sale of its FM radio stations is sub judice, an
argument which the ministry accepted, the source added.
TV Today had entered into a non-binding agreement with
ENIL for the sale of its seven radio stations. However, the
MIB refused to give permission to the sale prompting TV
Today to challenge the decision in the Delhi High Court.
The ministry had denied permission on the grounds that
the sale of radio stations violated the FM radio guidelines
that disallowed owning multiple frequencies in a city in
Phase II regime. However, multiple frequencies are
allowed in Phase III regime.
Subsequently, the ministry granted partial permission to
TV Today by approving the sale of four stations in
Amritsar, Patiala, Jodhpur and Shimla for a lump sum
consideration of Rs 4 crore (Rs 40 million), which was
adjusted for net working capital as per the sale
agreement.
TV Today said it made a profit of Rs 2.07 crore (Rs 20.7
million) from the transaction, which has been included in
the other income of the second quarter result ended 30
September.
The ministry had also denied permission to the company
for the sale of its stations in Delhi, Mumbai and Kolkata,
following which TV Today once again filed a writ petition
in the Delhi HC. The petition is still pending in the HC.
TV Today board today approved the agreement to sell the
three FM radio stations in Delhi, Mumbai and Kolkata to
ENIL, subject to the approval of the MIB or an order from
the Delhi HC.
It is pertinent to note that the ministry had extended the
date for the payment of migration fee at least twice
following requests by the Association for Radio Operators
of India (AROI). It had notified the migration fee payment
for FM radio operators to migrate from Phase II to Phase
III on 25 September.
The migration fee payment was extended once again as
the AROI challenged the MIB’s calculation of migration in
the Telecom Disputes Settlement & Appellate Tribunal
(TDSAT), which passed an interim order stating that the
migration fee should be calculated as per reserve price of
cities where no bids were received during the a-auction.
The matter is slated to be heard on 26 November.
Meanwhile, TV Today’s operating loss from FM radio
business zoomed 203 per cent to Rs 5.47 crore (Rs 54.7
million) during the quarter ended 30 September, compared
to Rs 1.8 crore (Rs 18 million) in the corresponding
quarter of the previous fiscal. Revenue slumped 38 per
cent to Rs 2.61 crore (Rs 26.1 million) from Rs 4.21 crore
(Rs 421 million).
TV Today gets interim relief from MIB’s demand of Rs 71.36 cr as migration fee | TelevisionPost.com
the Ministry of Information & Broadcasting’s (MIB)
demand for an additional migration fee of Rs 71.36 crore
(Rs 713.6 million) for migrating its radio stations from
Phase II to Phase III policy regime.
According to a source, the ministry had issued migration
fee payment notices to all FM radio companies for
migrating to Phase III regime. TV Today, which is already
locked in a legal battle with the MIB over the sale of its
FM radio business to Entertainment Network India Ltd
(ENIL), also received the migration fee demand.
The company made a representation before the ministry
stating that it should not have received the notice
demanding migration fee since the matter pertaining to
the sale of its FM radio stations is sub judice, an
argument which the ministry accepted, the source added.
TV Today had entered into a non-binding agreement with
ENIL for the sale of its seven radio stations. However, the
MIB refused to give permission to the sale prompting TV
Today to challenge the decision in the Delhi High Court.
The ministry had denied permission on the grounds that
the sale of radio stations violated the FM radio guidelines
that disallowed owning multiple frequencies in a city in
Phase II regime. However, multiple frequencies are
allowed in Phase III regime.
Subsequently, the ministry granted partial permission to
TV Today by approving the sale of four stations in
Amritsar, Patiala, Jodhpur and Shimla for a lump sum
consideration of Rs 4 crore (Rs 40 million), which was
adjusted for net working capital as per the sale
agreement.
TV Today said it made a profit of Rs 2.07 crore (Rs 20.7
million) from the transaction, which has been included in
the other income of the second quarter result ended 30
September.
The ministry had also denied permission to the company
for the sale of its stations in Delhi, Mumbai and Kolkata,
following which TV Today once again filed a writ petition
in the Delhi HC. The petition is still pending in the HC.
TV Today board today approved the agreement to sell the
three FM radio stations in Delhi, Mumbai and Kolkata to
ENIL, subject to the approval of the MIB or an order from
the Delhi HC.
It is pertinent to note that the ministry had extended the
date for the payment of migration fee at least twice
following requests by the Association for Radio Operators
of India (AROI). It had notified the migration fee payment
for FM radio operators to migrate from Phase II to Phase
III on 25 September.
The migration fee payment was extended once again as
the AROI challenged the MIB’s calculation of migration in
the Telecom Disputes Settlement & Appellate Tribunal
(TDSAT), which passed an interim order stating that the
migration fee should be calculated as per reserve price of
cities where no bids were received during the a-auction.
The matter is slated to be heard on 26 November.
Meanwhile, TV Today’s operating loss from FM radio
business zoomed 203 per cent to Rs 5.47 crore (Rs 54.7
million) during the quarter ended 30 September, compared
to Rs 1.8 crore (Rs 18 million) in the corresponding
quarter of the previous fiscal. Revenue slumped 38 per
cent to Rs 2.61 crore (Rs 26.1 million) from Rs 4.21 crore
(Rs 421 million).
TV Today gets interim relief from MIB’s demand of Rs 71.36 cr as migration fee | TelevisionPost.com
