The first phase of radio broadcasting was launched in 1999. They launched 21 private FM radio channels. In July 2005, phase II auction were held. In this phase, 221 radio channels became operational. The previous 21 channels of phase I had to migrate to phase II, taking the private operational radio channels to 242 ( 21 + 221 ). At present, 242  FM radio channels are operational in 85 cities. In phase III, 135 channels of FM radio will be made available to the 69 cities of phase II. FM phase III ( 2015 ) extends to about 227 new cities, whose population is 1 lac or above touching a total of 839 new FM channels in 294 cities. The coverage area of FM would expand to 75 per cent of the country from 40 percent as of today. With the launch of phase III, radio is expected to provide advertisers a much deeper reach. Once phase III is completed all 839 licenses active in about two years, radio will command 9 percent of ad pie, up from the present 4.4 per cent. As of today, the industry size is Rs. 1800 crore, and it is growing at a CAGR of 15 per cent. Phase III will make the industry more conducive to mergers / acquisitions due to increase in the license period from 10 to 15 years.