TRAI’s FM auction reforms need swift rollout, says Red FM COO Nisha Narayanan

New Delhi: Nisha Narayanan, Director & COO of Red FM & Magic FM, has welcomed TRAI’s latest recommendations on FM radio but warned that the industry cannot afford delays in implementation.

The Telecom Regulatory Authority of India (TRAI) has suggested a new framework for FM radio auctions, including reserve prices for channels in smaller and category-E cities.

“We welcome TRAI’s proposed reforms for the FM radio sector. It is encouraging to see such comprehensive recommendations being made, which reflect a genuine understanding of the industry’s needs. However, while these steps are commendable, what truly matters is timely implementation,” Narayanan said.

She pointed out that several positive policy suggestions for radio had been put forward in the past, but never translated into action. “Failure to act promptly could affect businesses and hinder the growth of the industry in the long run. We sincerely hope this time the reforms are acted upon quickly so that the industry can realise its full potential and continue to serve audiences in more meaningful ways,” she added.

The regulator has proposed reserves such as Rs 0.83 crore for Bilaspur, Rs 1.20 crore for Rourkela and Rs 0.97 crore for Rudrapur, while category-E cities would see a reserve price of just Rs 3.75 lakh.

TRAI also recommended:

• Lowering the minimum net worth threshold for bidders in smaller towns to Rs 30 lakh.
• Revising annual licence fees to be linked with Adjusted Gross Revenue (AGR).
• Allowing private FM stations to air up to 10 minutes of news each hour under government programme codes.
• Relaxing infrastructure rules, including co-location norms, and enabling FM operators to share public broadcasting facilities at concessional rates.

Broadcasters believe these steps could unlock new growth in Tier-2 and Tier-3 cities, ease financial burdens, and help radio diversify its content mix. 

However, as Narayanan underlined, the sector’s optimism hinges on whether the Ministry of Information and Broadcasting acts quickly to convert TRAI’s recommendations into actionable rules.