Unnatural fee hike in license renewal spells trouble for FM stations

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Around 200 radio stations operating in the private sector risk closure as their owners have been asked by Pakistan Electronic Media Regulatory Authority (PEMRA) to pay a renewal fee at par with the latest bid in concerned districts.

This comes as PEMRA failed to act against illegal FMs (frequency modulations) operating in the market.

A recent Supreme Court ruling, overriding a Lahore High Court decision allowed PEMRA to collect the license renewal fee as per its own formula, which FM owners have termed unjust.

“We are facing difficult circumstances not only due to economic slowdown but also because PEMRA has failed to act against 70 illegal FM stations operating across Pakistan,” said the Pakistan Broadcasting Association (PBA) spokesperson, Najib Ahmad adding that since these FMs are being operated by public institutions on commercial basis, their business prospects are doomed.

“If I go by the new license renewal formula I will have to pay Rs 1 million for my Islamabad based FM per month though the situation is different in other districts,” Najib said, adding that it was difficult for him to compete in a market where illegal radios have such vast coverage.

The PBA through a writ petition filed by the late Asma Jahahngir in Supreme Court in 2016 had sought ban on illegal FMs and had pressed PEMRA to ensure a competitive environment.

“We expect PEMRA to fulfill its responsibility as a regulator, which is to ensure competitive environment, before indulging in money-making practices,” Najib said adding that in case the renewal fee falls too heavy on the owners, the future of this sector is doomed given the poor returns and uncompetitive environment.

It is worth mentioning that PEMRA has not conducted market study so far and has not undertaken any mentionable project for up-gradation and capacity building of the FM sector to attract new investors, which makes the license bidding process subject to manipulation by vested interests.