New Delhi: The Telecom Regulatory Authority of India (TRAI) has released its much-anticipated recommendations for the upcoming auction of FM radio channels in select cities and towns across the country, aiming to boost private radio broadcasting in underserved regions and support financial viability for operators.
The recommendations come in response to a request from the Ministry of Information and Broadcasting (MIB) to advise on reserve pricing and related terms for 18 category ‘E’ cities across Himachal Pradesh, Uttarakhand, and Jammu & Kashmir, along with Bilaspur (Chhattisgarh), Rourkela (Odisha), and Rudrapur (Uttarakhand).
New Reserve Prices Announced
TRAI has set distinct reserve prices for specific cities:
- Bilaspur – ₹0.83 crore
- Rourkela – ₹1.20 crore
- Rudrapur – ₹0.97 crore
- Category ‘E’ cities – ₹3.75 lakh
These prices were finalised after extensive stakeholder consultations, including a consultation paper released in August 2024 and an Open House Discussion in October 2024.
Revised Financial and Regulatory Framework
To encourage broader participation, TRAI has recommended a minimum net worth requirement of ₹30 lakh for bidders in category ‘E’ cities. For other cities, the existing net worth criteria from the FM Phase-III policy guidelines (2011) will continue to apply.
Each category ‘E’ city will be allowed a maximum of three private FM channels, with annual license fees set at 2% of Adjusted Gross Revenue (AGR) for the first three years, increasing to 4% thereafter. In certain hilly and border areas categorised as ‘Others’, this concessional 2% AGR fee will remain in effect during the initial three-year period.
Definition of Revenue and Fee Structure
TRAI has reaffirmed that Gross Revenue (GR) will continue to follow FM Phase-III norms and will include income from radio streaming, excluding GST. The annual license fee will be delinked from the non-refundable one-time entry fee, and will instead be calculated directly based on AGR.
Operational Flexibility and Infrastructure Sharing
In a move aimed at reducing infrastructure costs and enhancing efficiency, TRAI has removed the mandatory co-location requirement for transmission infrastructure. Broadcasters will now have the option of voluntary infrastructure sharing with telecom and broadcast players, based on technical and commercial feasibility.
TRAI has also recommended that Prasar Bharati offer its towers, land, and common transmission infrastructure to private FM players at concessional rents, with operators required to only cover operational expenses.
Additionally, successful bidders should be given flexible payment options for their bid amounts—aligned with those offered in telecom spectrum auctions by the Department of Telecommunications.
News Broadcast and Digital Streaming Permissions
In a significant content-related update, TRAI has proposed that private FM broadcasters be allowed to air news and current affairs content for up to 10 minutes per hour, in compliance with the central government’s programme code.
Broadcasters will also be permitted to simultaneously stream their FM content online, provided the service does not include user-controlled features such as download, playback, or rewind, ensuring parity with linear radio broadcasting.
With these forward-looking recommendations, TRAI aims to make FM broadcasting more inclusive, cost-effective, and digitally adaptive. If adopted by the government, the reforms are expected to open up new market opportunities, especially in smaller cities and strategic regions, while offering broadcasters the flexibility and infrastructure support needed to scale operations sustainably.
