Telediffusion to freeze all India operations

The WorldCom crash waves have hit the Indian FM radio players, too. WorldComs dramatic plunge has forced Telediffusion de France (TDF), a leading French transmission infrastructure company, and its parent France Telecom to freeze all its further investments in transmission and telecom business in India.

TDF has been appointed by five leading Indian FM radio companies to put up a common FM transmission infrastructure to start their operations in three metros New Delhi, Kolkata and Chennai by 29 August 2002. TDFs move has put Indian FM radio companies in the lurch. Sources familiar with these developments say: Subsequent to WorldComs collapse, France Telecom and its group companies revised their decision on further investments in new countries, including India. Currently, France Telecom alone has a debt exposure of around $60 billion.

TDF was committed to invest $500 million over the next five years in radio, television and telecom infrastructure services in India. The companys first target was radio, to be followed by providing infrastructure services for television and telecom projects in the country. The sources add: These dramatic developments may create a delay in our operations in New Delhi, Kolkata and Chennai. We are looking out for other alternatives. TDF had received permission for 100-per cent foreign direct investment in its Indian subsidiary some time ago and was chosen by Indian FM radio companies (such as Radio Mirchi, Radio City, Mid-Day Radio, Millennium Broadcast and Radio Today) because of its international expertise in providing infrastructure solutions for radio and television services. The company has so far put up 18,000 transmitters in the world, mainly in Europe and America.

It is reliably learnt that these private FM radio players have already initiated talks with All India Radio (AIR) to provide a common transmission infrastructure to start their operations on time. The Broadcast Engineers Consultant India Ltd, a research and consultancy body of AIR and Doordarshan engineers, is likely to take up the job of infrastructure integrator for FM radio players, the sources say.

The private sector companies have also approached the information and broadcasting ministry to install individual interim transmission arrangements to speed up the operations. These private FM players are to start operations before 29 August 2002, the deadline for paying the license fee of Rs 7 crore.