New Delhi: The Telecom Regulatory Authority of India (TRAI) has today released a Consultation Paper on “Reserve Price for auction of FM Radio channels”.
The Ministry of Information and Broadcasting (MIB) sent a reference dated 22nd August 2019, seeking recommendations of TRAI on reserve prices for 283 cities (260 new + 23 existing), under FM Phase-Ill Policy.
Accordingly, this Consultation Paper has been prepared to seek the comments/views of the stakeholders on the issues related to the estimation of the reserve prices for auction of FM Radio channels.
As part of the consultative process, the Consultation Paper has been uploaded on the TRAI website. The industry regulator invites written comments on the consultation paper from the stakeholders by 6th November 2019. Counter-comments, if any, may be submitted by 13th November 2019.
The comments and counter comments may be sent, preferably in electronic form, on the e-mail address firstname.lastname@example.org. Comments and counter-comments will be posted on TRAI’S website www.trai.gov.in
Issues for consultation:
Q1. Do you agree with the methodology used in TRAI’s recommendations dated 15th March 2015 for valuation FM Radio channels? You may also suggest an alternative approach/ methodology with details and justifications.
Q2. Can the Phase-III policy i.e. the highest bid price received for a city in Phase-II continued to be reserve price for the existing cities? If yes, is there a need to account for the inflation? If no, please suggest approach / methodology for existing cities with justification.
Q3. Do you agree that various technical changes, behavioral changes in listeners, availability of devices for FM Radio listening will be duly 21 captured by the variables – Population, Per capita income, Listenership of FM Radio, and Per capita Gross Revenue (GR) earned by existing FM Radio operators, as recommended by TRAI in 2015, for valuation of FM radio channels in new cities? If not, what additional variables need to be considered for truly reflecting the valuation of FM radio channels in new cities? You may also suggest alternative variables with details and justifications.
Q4. How should the present listenership of FM Radio in each state be estimated? Please provide your suggestions with justification.
Q5. In case methodology as recommended by TRAI in 2015 for determining reserve price for FM Radio channels in new cities is adopted, should the reference price be taken as the average of successful bids received in Phase-III auction held in 2015 and 2016? If no, please suggest an alternative proposal with justification.
Q6. Do you agree with the proposal that the reserve price for FM Radio channels in a new city can be set equal to 0.8 times of the valuation of FM Radio channels in that city? If no, suggest an alternative proposal with justification.
Q7. Should the auction of remaining FM channels of Phase-III be done delinking it from technology adopted for radio broadcasting? Please give your suggestions with detailed justification.
Q8. In case auction of remaining FM channels of Phase-III is delinked from technology, whether FM Radio broadcasters who adopt digital technology be permitted to broadcast multiple channels on single frequency? Please give your suggestions with detailed justification.
Q9. Stakeholders may also provide their comments/ suggestions on any other issue that may be relevant to the present consultation