TRAI revises migration-fee rule for cities with no bids, reserves price to be used as base

New Delhi: The Telecom Regulatory Authority of India (TRAI) on Monday issued a corrigendum to its October recommendations on a digital radio broadcast policy, revising how migration fees will be calculated in cities where no bids are received for new digital radio frequencies. 

The regulator said the reserve price fixed for a city, not an average of other cities’ prices, will now be the basis for migration amounts in such cases.

The corrigendum amends paragraph 3.74(g) of TRAI’s recommendations of October 3, 2025, that were sent to the Ministry of Information and Broadcasting (MIB). TRAI said it reviewed the earlier approach after noting that averaging Annual Domain Prices (ADPs) across similar cities could produce “aberrations” relative to a city’s reserve price arrived at through a due valuation model.

The Authority has therefore revised the recommendation to state: “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.”

The change affects the financial calculus for existing FM broadcasters that choose to migrate to digital under the regulator’s proposed simulcast model, a transitional arrangement that allows analogue and digital services to operate together on the same spectrum.

Rollout, auctions and simulcast model

TRAI’s final recommendations propose a phased rollout covering 13 cities in the first round, four A+ cities (Mumbai, Delhi, Kolkata and Chennai) and nine A cities (Hyderabad, Bengaluru, Ahmedabad, Surat, Pune, Jaipur, Lucknow, Kanpur and Nagpur). Two new spot frequencies will be auctioned in each of these cities, with city-wise reserve prices already fixed.

City reserve prices lead the list: Mumbai at Rs 194.08 crore, Delhi Rs 177.63 crore, Chennai Rs 146.68 crore and Kolkata Rs 79.96 crore. Among A-category cities, Bengaluru’s RP is Rs 87.22 crore, Hyderabad Rs 65.85 crore and Pune Rs 41.26 crore; the remaining cities range from Rs 40.44 crore (Ahmedabad) to Rs 20.52 crore (Kanpur).

TRAI has proposed that new entrants operate in simulcast mode, permitting one analogue channel, three digital channels and one data channel on a single frequency. 

Existing FM operators will be allowed to migrate voluntarily; migration fees will be calculated as the difference between the auction-determined price of a city and the proportionate entry fee already paid for the remaining licence period. Broadcasters opting to migrate must commence simulcast operations within two years of opting in.

Why the corrigendum matters

The earlier recommendation would have used an average ADP across comparable cities where no bids were received, conditional on at least two successful bids in that city category. TRAI said that approach risked producing migration amounts that were higher or lower than a city’s reserve price, an outcome that could distort incentives and fairness.

By anchoring migration amounts to the city-specific reserve price, the regulator has prioritised valuation integrity and predictability for broadcasters considering migration. Industry sources say the correction should reduce commercial uncertainty for existing players and streamline the migration decision.

Beyond the corrigendum, TRAI’s recommendations call for a single digital radio technology standard for VHF Band II to avoid market fragmentation and to accelerate device and receiver adoption. Stakeholders had argued for either Digital Radio Mondiale (DRM) or HD Radio; TRAI left the final choice to the government, suggesting it may be decided through consultations or embedded in the auction process.

Other key proposals include a 15-year authorisation period, an annual authorisation fee of 4 per cent of Adjusted Gross Revenue (AGR) (2 per cent concessional for hilly, border and island areas for three years), retention of a 40 per cent ownership cap on spot frequencies in any city and a requirement for at least three operators per market. 

TRAI also recommended a voluntary Radio Broadcasting Infrastructure Provider authorisation, asked Prasar Bharati to offer transmission assets at concessional rates, and proposed a government advisory to ensure availability of digital receivers in mobiles and cars.

Enforcement is strict: broadcasters who fail to operationalise services within 24 months of frequency assignment stand to lose the spectrum and be barred from applying for another frequency in the same city for five years.