TRAI’s digital radio plan welcomed, but speed, pricing to decide success: Nisha Narayanan

New Delhi: Red FM Director and COO Nisha Narayanan has called TRAI’s digital radio recommendations “a long-awaited and progressive step,” backing proposals such as a single digital standard, simulcast operations and the identification of new spot frequencies in major cities.

Narayanan said these moves can “unlock innovation and new content opportunities,” but warned that execution must be swift and pricing realistic. 

She urged that reserve prices reflect current FM revenue trends rather than past auction levels, adding that adoption will also hinge on the availability of digital receivers in cars and smartphones.

“TRAI has set the direction and now it’s about converting this intent into swift, effective action to keep radio’s growth momentum alive in the digital era,” she said.

Digital radio rollout at a glance:

• Phase 1: 13 cities. Two new spot frequencies each. Top reserves: Mumbai Rs 194.08 crore, Delhi Rs 177.63 cr.

• Simulcast: New entrants must run 1 analogue + 3 digital + 1 data on a single frequency. Existing FM can migrate. Six months to opt in, 24 months to launch. No FM switch-off date yet.

• Single standard: One national tech standard in VHF Band II. Government to decide between DRM and HD Radio via consultations or auction terms.

• Tenure and fees: 15-year authorisation. 4% AGR annually; 2% for the first three years in hilly, border and island areas. Streaming revenue counts toward AGR.

• Market and infra: 40% city cap per broadcaster, minimum three operators. New infra-provider authorisation. Prasar Bharati to share towers on concessional terms. Advisory for receivers in phones and cars.

• Enforcement: Miss the 24-month launch window and lose spectrum with a five-year bar in that city.