TRAI recommends reserve prices for auction of FM radio channels

New Delhi: The Telecom Regulatory Authority of India (TRAI), on Tuesday, released its recommendations on reserve prices for the auction of FM radio channels in select cities and towns across India. 

The Ministry of Information and Broadcasting (MIB) had requested TRAI’s advice for 18 category ‘E’ cities in Himachal Pradesh, Uttarakhand, and the Union Territory of Jammu & Kashmir, as well as for Bilaspur in Chhattisgarh, Rourkela in Odisha, and Rudrapur in Uttarakhand.

Following a consultation paper issued in August 2024 and an Open House Discussion in October 2024, TRAI considered stakeholder comments and further analysis to finalise the recommendations. 

The authority has set the reserve price for Bilaspur at Rs 0.83 crore, for Rourkela at Rs 1.20 crore, and for Rudrapur at Rs 0.97 crore. For category ‘E’ cities, the reserve price will be Rs 3.75 lakh. 

TRAI has recommended a minimum net worth of Rs 30 lakh for bidders in category ‘E’ cities. For other categories of cities, the net worth requirements will continue as prescribed in the FM Phase-III policy guidelines of 2011.

The maximum number of private FM channels allowed in category ‘E’ cities has been set at three. Annual fees for category ‘E’ cities will be 2% of Adjusted Gross Revenue (AGR) for the first three years, rising to 4% thereafter. 

AGR will be calculated after deducting GST from Gross Revenue (GR), and revenue from streaming of radio channels by operators will also be included in GR. TRAI has confirmed that the definition of Gross Revenue will continue to follow existing FM Phase-III guidelines.

To support the financial sustainability of FM operators, TRAI has recommended several measures. Private FM broadcasters will be allowed to air news and current affairs programmes for up to 10 minutes in each hour, following the programme code prescribed by the central government. 

Operators will also be permitted to stream radio channels concurrently without user-controlled features such as download, playback, or replay. The annual licence fee will be delinked from the non-refundable one-time entry fee, ensuring that it is calculated based on AGR. In certain border and hilly areas categorised as ‘Others’, a concessional fee of 2% of AGR will apply for the first three years.

TRAI has also suggested that Prasar Bharati share its land, tower, and common transmission infrastructure with private broadcasters at concessional rental rates, while recovering operational costs. Successful bidders should have multiple options for payment of bid amounts, similar to spectrum auctions conducted by the Department of Telecommunications. 

The authority has removed the condition for mandatory co-location of transmission infrastructure, allowing voluntary sharing with other broadcasting, telecom, and infrastructure providers based on technical and commercial feasibility.