The Telecom Regulatory Authority of India (TRAI) has recommended reserve prices for the auction of FM radio channels across select non-metro and smaller cities, including Bilaspur, Rourkela, Rudrapur and 18 Category ‘E’ towns in Himachal Pradesh, Uttarakhand and the Union Territory of Jammu & Kashmir.

Apart from financial recommendations, the broadcast and telecom regulator has also favoured allowing FM radio stations airing news content, subject to certain conditions.

The recommendations titled ‘Reserve Prices for Auction of FM Radio Channels’, released yesterday, also include significant changes to license fees, net worth requirements and news content permissions aimed at boosting the financial sustainability of private FM broadcasters.

According to a TRAI statement, the reserve price for FM radio channels should be Rs. 0.83 crore for Bilaspur (Chhattisgarh), Rs.1.20 crore for Rourkela (Odisha), and Rs. 0.97 crore for Rudrapur (Uttarakhand).

For Category ‘E’ cities, the reserve price has been set at Rs. 3.75 lakh per channel, with a minimum net worth requirement of Rs. 30 lakh for bidders.

However, for these recommendations to come into effect and be implemented as policies, the Ministry of Information and Broadcasting has to first accept them.

The Authority has recommended a new fee structure for Category ‘E’ cities — an annual authorisation fee of 2 percent of adjusted gross revenue (AGR) for the first three years, which will increase to 4 percent of AGR thereafter.

The AGR will be calculated after excluding GST from gross revenue (GR). In the towns for which the recommendations have been made, a maximum of three channels per city may be allocated to private broadcasters.

Additionally, if the streaming of a radio channel is being provided by the radio operator, the revenue generated from such streaming should also be included in the definition of GR, the regulator explained.

TRAI has proposed that private FM operators be allowed to broadcast news and current affairs content up to 10 minutes in each clock hour, subject to adherence to the programme code prescribed by the government.

It has further suggested that authorised terrestrial radio entities be permitted to concurrently stream radio programmes online without user controls such as download or playback.

A major shift recommended is the delinking of the annual licence fee from the non-refundable one time entry fee (NOTEF) for all licensees, including existing ones. TRAI has also urged the government to extend the concessional use of Prasar Bharati’s land, tower and common transmission infrastructure to private broadcasters at lower rental rates while ensuring recovery of operational costs.

In a move to encourage greater flexibility, the Authority suggested removing the mandatory co-location of transmission infrastructure and allowing private FM operators to voluntarily share infrastructure with other broadcasting, telecom and infrastructure service providers based on technical and commercial feasibility. It also wants successful bidders to have multiple options for paying their bid amounts, mirroring the payment flexibility provided in telecom spectrum auctions.

The recommendations come after a comprehensive consultation process, the regulator added, saying it had issued a consultation paper on August 1, 2024 and received stakeholder comments apart from holding  an open house discussion on October 10, 2024.

If accepted, these recommendations are expected to expand the reach of private FM radio into smaller towns and hilly regions while providing broadcasters with more operational and financial flexibility.

(The image collage is representational and AI generated)