Big cut in FM radio renewal fees

Community radios license renewal fee slashed by over 90 percent

Commercial radios license renewal fee slashed by 55 percent

FM stations can now renew broadcast license once in five years

KATHMANDU, Jan 25: The government has decided to heavily reduce the renewal fee for FM radio broadcasting license starting this year.

The Ministry of Information and Communications (MoIC) has taken a decision to reduce the license renewal fee for non-commercial FM radio by 90 percent and for commercial FM radio by 55 percent.

This is the first time the MoIC has divided FM stations operating across the country into two categories—commercial and non-commercial i.e. community radios.

The decision comes following complaints by FM radio operators the renewal fee for FM broadcasting license is exorbitantly high.

Prior to this new rule, all FM radios, irrespective of their type, were required to renew their broadcast license each year by paying 110 percent of their total broadcast license charge.

As per the new regulation, non-commercial FM radios now have to pay only 10 percent of their total broadcast license fee, while commercial radios need to pay 50 percent of the broadcast license fee for renewal of the broadcast license each year.

The MoIC charges Rs 500, Rs 1,000, Rs 10,000 and Rs 100,000 for acquiring broadcast license for 20 watts, 50 watts, 100 watts and 200 watts FM radio transmitters respectively. The broadcast license fee for FM stations with 250 to 500 watts transmitters is Rs 200,000 and for those with 500 watts plus transmitters is Rs 50,000 a

year.

According to a notice published recently in the Nepal Gazette, FM stations can now renew their broadcast license for five years, against the provision of renewing their broadcast license every year.

In addition, the government has also reduced the existing royalty of four percent of the total annual revenue for FM radios. While the non-commercial FM radios will have to pay 2 percent, down from 4 percent, of their total revenue as royalty each year to the government, the fee has been left unchanged for commercial radio

stations.

The government has recognized FM stations registered with District Administration Office and not having profit motive as non-commercial radio stations and those registered at the Department of Cottage and Small Scale Industries (DoCSSI) and Office of the Company Registrar (OCR) with profit-making motive as commercial radio

stations.

Commercial FM radio operators argue that there is problem with government classification as some NGOs too have acquired license for community radio and the NGOs could work in the interest of their donors.

Keeping in view the contribution made by FM stations during the April 2006 democratic movement, the post-movement government had provided 50 percent discount on the royalty and waived broadcast license renewal fee for the past three years.

A total of 310 FM stations across the country have received broadcast licenses so far. Of them, about 150 are non-commercial, also known as community radios.

Meanwhile, commercial FM radio operators have said the government’s decision to provide them only 55 percent discount on renewal fee is ‘discriminatory.’

Bishnu Hari Dhakal, general secretary of Broadcasting Association of Nepal (BAN), told myrepublica.com that they have already submitted a memorandum to the MoIC against the "discriminatory policy". “We will soon challenge the fee reduction decision at the court,” he said.

Dhakal said the government should first unveil a new National Broadcast Policy to categorize FM stations into two groups. “We just wonder whether the broadcast policy of the current government is just a continuity of the existing communications policy or a completely new policy formulated by the government formed after the

Janaandolan II (April 2006 movement),” he mused.