The Union ministry of information and broadcasting's phase- ii policy, which plans to allow private fm in 91 towns and a total of 338 frequencies via auction concluded on February 3, 2005. 304 frequencies in almost all these cities were won by private companies after more than a month of hectic bidding. The auctions indicated shape of things to come. Almost all the bids were cornered by giants such as Radio Mirchii, Radio City fm. Some regional media houses such as Malayala Manorama and Rajasthan Patrika also made their presence felt. But Frederick Noronha, a media observer questioned, "Can the country's diversity be reflected by a few dozen companies operating from a few urban centers?"The government has repeatedly dithered on community radio initiatives.
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