TRAI Recommends Digital Radio Policy, Sets Terms and Reserve Prices in 13 Cities

A consultation paper issued on 30th September 2024 received 43 stakeholder comments and 13 counter-comments, followed by an Open House Discussion on 8th January 2025.

 

The Telecom Regulatory Authority of India (TRAI) has released its detailed Recommendations on “Formulating a Digital Radio Broadcast Policy for Private Radio Broadcasters”, setting the stage for the rollout of digital radio services in major Indian cities.

The recommendations outline the terms, conditions, and reserve prices for introducing digital radio broadcasting in four ‘A+’ category cities—Delhi, Mumbai, Kolkata, and Chennai—and nine ‘A’ category cities—Hyderabad, Bengaluru, Ahmedabad, Surat, Pune, Jaipur, Lucknow, Kanpur, and Nagpur.

This follows a request from the Ministry of Information and Broadcasting (MIB) on 23rd April 2024, seeking TRAI’s inputs under Section 11 (1)(a)(i) of the TRAI Act, 1997. A consultation paper issued on 30th September 2024 received 43 stakeholder comments and 13 counter-comments, followed by an Open House Discussion on 8th January 2025.

Simulcast Model for Transition

TRAI has recommended that digital radio services be launched in a Simulcast Mode:

• New broadcasters will start directly with one analog, three digital, and one data channel on a single spot frequency.

• Existing FM broadcasters may voluntarily migrate to the simulcast model, with a 6-month window to exercise their option after the auction.

• Broadcasters must commence simulcast operations within two years of either winning spectrum or opting for migration.

• The sunset date for analogue radio will be decided later, after evaluating digital adoption.

Technology, Spectrum, and Infrastructure

• A single digital radio technology standard will be adopted nationwide in the VHF Band II spectrum.

• The Government may choose the technology either via consultation with stakeholders or through the auction process itself.

• Frequency assignments for new channels will be conducted by auction under Section 4(4) of the Telecommunication Act, 2023.

• Two new spot frequencies in each of the 13 target cities will be auctioned initially, with more to follow after assessing market response.

• Prasar Bharati’s land, towers, and transmission infrastructure should be shared with private broadcasters at concessional rental rates.

• The requirement of mandatory co-location of transmission infrastructure is proposed to be removed, allowing voluntary sharing with broadcasters and telecom operators.

Financial Framework and Auction Reserve Prices

TRAI has proposed a 15-year authorisation period for digital radio services. Financial conditions include:

• Annual Authorisation Fee:

  • 4% of Adjusted Gross Revenue (AGR) for A+, A, B, C, and D cities.

  • 2% of AGR for ‘Others’ and ‘E’ category areas (NE states, J&K, Ladakh, and Islands) for the first three years, rising to 4% thereafter.

• Ownership Cap: No broadcaster may hold more than 40% of total spot frequencies in a city, with at least three different operators required per city.

Reserve Prices for Spectrum Auction (₹ crore):

• Delhi: 177.63

• Mumbai: 194.08

• Kolkata: 79.96

• Chennai: 146.68

• Bengaluru: 87.22

• Hyderabad: 65.85

• Ahmedabad: 40.44

• Pune: 41.26

• Jaipur: 26.89

• Lucknow: 24.59

• Kanpur: 20.52

• Nagpur: 29.48

• Surat: 25.89

Both new entrants and existing operators migrating to digital will have multiple payment options, including annual instalments over 15 years with incremental slabs, while protecting Net Present Value (NPV).

Consumer and Market Benefits

Digital radio will provide superior audio quality, with the ability to broadcast multiple channels and offer value-added services such as data broadcasting on the same frequency. Listeners will enjoy diverse content choices, while broadcasters will gain opportunities for new formats and advertising models.

TRAI has also recommended:

• A Programme Code and Advertisement Code specific to terrestrial radio services.

• Permission for broadcasters to stream live terrestrial channels online without user control.

• An advisory from the Government to ensure digital radio receivers are available in mobile phones and car infotainment systems, similar to earlier directives for FM radio.

Governance and Oversight

A high-level steering committee comprising representatives from MIB, MeitY, broadcasters, technology providers, and device manufacturers will oversee implementation, monitor receiver proliferation, and ensure healthy market growth.

Strategic Significance

TRAI’s recommendations mark a transformative step in India’s radio broadcasting landscape, moving beyond single-channel analogue FM to multi-channel digital formats. The policy is expected to drive innovation, competition, and consumer choice while supporting India’s broader goals of Digital India and Viksit Bharat 2047.

The full text of recommendations is available on www.trai.gov.in. For clarifications, stakeholders may contact Dr. Deepali Sharma, Advisor (Broadcasting & Cable Services), TRAI at +91-11-20907774.