TRAI Releases Recommendations on Reserve Prices for Auction of FM Radio Channels
TRAI has proposed reserve prices of ₹0.83 crore for Bilaspur, ₹1.20 crore for Rourkela, and ₹0.97 crore for Rudrapur, while Category ‘E’ cities have been set at ₹3.75 lakh.
New Delhi, September 24: The Telecom Regulatory Authority of India (TRAI) has released its recommendations on reserve prices for the auction of FM Radio channels, following a request from the Ministry of Information and Broadcasting (MIB) for guidance on expanding private FM radio in select cities.
The Ministry had sought TRAI’s inputs for 18 Category ‘E’ cities in Himachal Pradesh, Uttarakhand, and the Union Territory of Jammu & Kashmir, along with Bilaspur (Chhattisgarh), Rourkela (Odisha), and Rudrapur (Uttarakhand). After a consultation paper in August 2024, stakeholder feedback, and an open house discussion in October 2024, the regulator finalized its recommendations.
TRAI has proposed reserve prices of ₹0.83 crore for Bilaspur, ₹1.20 crore for Rourkela, and ₹0.97 crore for Rudrapur, while Category ‘E’ cities have been set at ₹3.75 lakh. The minimum net worth requirement for Category ‘E’ cities is pegged at ₹30 lakh, while other categories will continue under Phase-III FM policy norms.
The Authority also recommended that private FM operators be permitted to broadcast news and current affairs programs, limited to 10 minutes per clock hour, under the government’s prescribed programme code. Additionally, terrestrial radio services should be allowed to stream radio content concurrently without user control functions like playback or download.
For revenue assessment, TRAI has clarified that the definition of Gross Revenue (GR) will follow existing Phase-III guidelines, with revenues from online streaming also included. Adjusted Gross Revenue (AGR) will be calculated after excluding GST, with license fees set at 4% of AGR. In Category ‘E’ cities and “Others” (border and hilly areas), an annual/authorisation fee of 2% of AGR will apply for the first three years, rising to 4% thereafter.
To strengthen financial viability, TRAI has suggested delinking the annual license fee from the one-time entry fee, offering multiple payment options to successful bidders, and allowing voluntary sharing of transmission infrastructure. It has also recommended that Prasar Bharati share its land and tower infrastructure with private broadcasters at concessional rates, ensuring recovery of operational expenses.
The full text of TRAI’s recommendations is available on its website www.trai.gov.in.
