New Delhi: In a move aimed at improving fairness and predictability for FM broadcasters, the Telecom Regulatory Authority of India (TRAI) has issued a corrigendum to its October 3 recommendations on the country’s upcoming digital radio broadcasting framework.
The amendment changes how migration fees will be calculated in cities where no bids are received for new digital frequencies. Instead of using an average of Annual Domain Prices (ADPs) from comparable cities, TRAI has clarified that the reserve price (RP) fixed for that specific city will now serve as the basis for determining migration amounts.
Correction to October Recommendations
The revision modifies paragraph 3.74(g) of TRAI’s earlier recommendations submitted to the Ministry of Information and Broadcasting (MIB). The regulator noted that the earlier averaging method could produce “aberrations” that misaligned with the reserve prices derived from its valuation model.
“In case no bids are received for new frequencies in a city, then Reserve Price (RP) for that city should be considered as the basis for migration amount for the purpose of migration of existing broadcasters,” TRAI clarified in the corrigendum.
Impact on Existing Broadcasters
The change carries significant financial implications for FM broadcasters contemplating migration to digital under TRAI’s proposed simulcast model — a transitional system allowing both analogue and digital broadcasts on the same frequency.
Under this model, existing operators may choose to migrate voluntarily. Migration fees will be calculated as the difference between the auction-determined price (or now, the city’s RP where no bids occur) and the proportionate licence fee already paid for the remaining licence period. Migrated operators must begin simulcast operations within two years.
Industry analysts say the revision brings greater valuation consistency and reduces uncertainty for current licensees weighing migration costs. By linking fees directly to reserve prices, TRAI aims to ensure transparency and maintain parity across markets.
First-Phase Rollout and Auction Structure
TRAI’s final recommendations propose a phased digital radio rollout across 13 major cities — four A+ metros (Mumbai, Delhi, Chennai and Kolkata) and nine A-category cities (Hyderabad, Bengaluru, Ahmedabad, Surat, Pune, Jaipur, Lucknow, Kanpur and Nagpur).
Each city will see two new frequencies auctioned, with reserve prices already set. Mumbai leads with ₹194.08 crore, followed by Delhi (₹177.63 crore), Chennai (₹146.68 crore) and Kolkata (₹79.96 crore). Among A cities, Bengaluru stands at ₹87.22 crore, Hyderabad ₹65.85 crore and Pune ₹41.26 crore, with smaller cities ranging from ₹40.44 crore (Ahmedabad) to ₹20.52 crore (Kanpur).
Technical and Policy Highlights
TRAI has proposed that new entrants operate in simulcast mode, enabling one analogue channel, three digital channels and one data channel per frequency. The regulator has also urged the government to adopt a single digital radio standard for VHF Band II to avoid market fragmentation and ensure receiver compatibility.
While stakeholders have debated between Digital Radio Mondiale (DRM) and HD Radio, TRAI has left the final choice to the government, suggesting it be decided through consultation or embedded in the auction process.
Licence and Fee Framework
Key financial and structural provisions include:
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15-year authorisation period for digital radio operators.
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Annual authorisation fee of 4% of Adjusted Gross Revenue (AGR), reduced to 2% for hilly, border and island areas for the first three years.
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40% cap on frequency ownership in any city.
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Minimum three-operator requirement per market to ensure competition.
The regulator also proposed a voluntary Radio Broadcasting Infrastructure Provider (RBIP) framework and encouraged Prasar Bharati to lease transmission assets at concessional rates. It further recommended a government advisory to ensure digital receiver availability in mobile phones and cars.
Strict Compliance and Penalties
TRAI has maintained strict enforcement provisions: any broadcaster failing to operationalise services within 24 months of spectrum allocation will lose its licence and be barred for five years from reapplying in the same city.
Industry Takeaway
By revising its earlier formula, TRAI has sought to remove potential distortions and align financial expectations with market realities. Broadcasters say the move should simplify migration planning and bolster confidence in India’s long-awaited transition from analogue to digital radio.
