TRAI’s Recommendations on Digital Radio Broadcasting Policy for Private Broadcasters

The Telecom Regulatory Authority of India (TRAI) has issued its recommendations for a “Digital Radio Broadcast Policy for Private Radio Broadcasters,” outlining terms, conditions, and reserve prices for initiating digital radio services in four ‘A+’ cities (Delhi, Mumbai, Kolkata, Chennai) and nine ‘A’ cities (Hyderabad, Bengaluru, Ahmedabad, Surat, Pune, Jaipur, Lucknow, Kanpur, Nagpur). These recommendations were developed following a request from the Ministry of Information and Broadcasting (MIB) on April 23, 2024, under Section 11(1)(a)(i) of the TRAI Act, 1997.

TRAI released a consultation paper on September 30, 2024, to gather stakeholder input on the proposed policy. The authority received 43 comments and 13 counter-comments, which are accessible on TRAI’s website. An Open House Discussion was conducted on January 8, 2025. After analyzing the feedback and conducting further evaluations, TRAI finalized its recommendations, with key highlights as follows:

1. Simulcast Mode Implementation: New broadcasters should launch digital radio services in simulcast mode. Existing analog FM radio broadcasters may voluntarily transition to simulcast mode.
2. Channel Capacity in Simulcast Mode: Simulcast mode allows broadcasters to transmit one analog channel, three digital channels, and one data channel on a single assigned frequency.
3. Unified Digital Radio Standard: A single digital radio technology standard should be adopted for VHF Band II in India.
4. Technology Selection Process: The government should choose an appropriate digital radio technology through stakeholder consultations (including radio broadcasters and receiver manufacturers), incorporate technology selection into the spectrum auction process, or use another suitable method.
5. Frequency Planning: The government should develop and publish frequency plans for a single-technology scenario in the specified ‘A+’ and ‘A’ cities.
6. Frequency Allocation via Auction: New channel frequencies should be assigned through auctions as per Section 4(4) of the Telecommunication Act, 2023.
7. Migration Offer for Existing Broadcasters: Post-auction, existing FM broadcasters should be offered the option to migrate to simulcast mode voluntarily.
8. Migration Timeline: Existing broadcasters must decide on migration to simulcast mode within six months from the auction’s conclusion.
9. Migration Costs: Existing FM broadcasters migrating to simulcast mode must pay the difference between the auction-determined price for digital radio in a city and the prorated Non-refundable One-Time Entry Fee (NOTEF) for the remaining period of their existing license.
10. Operational Timeline: Broadcasters must commence simulcast operations within two years of either the auction’s conclusion or their acceptance of the migration option.
11. Analog Sunset Date: The phase-out date for analog broadcasting should be determined later, based on the progress of digital radio adoption.
12. Infrastructure Provider Authorization: A new “Radio Broadcasting Infrastructure Provider” authorization should be introduced to lease active and passive digital infrastructure to broadcasters, though this is not mandatory for launching digital radio services.
13. Digital Receiver Advisory: The government should issue an advisory encouraging the inclusion of digital radio receivers in mobile phones and car infotainment systems, similar to the MeitY advisory for FM receivers.
14. Live Streaming: Private terrestrial radio broadcasters should be permitted to stream their live channels concurrently without user control.
15. Steering Committee: The MIB should form a high-level committee with representatives from MIB, MeitY, radio broadcasters, device manufacturers, and technology providers to monitor the development and adoption of digital radio receivers.
16. Eligibility Criteria: The eligibility conditions, including minimum net worth, should align with TRAI’s recommendations on “Framework for Service Authorisations for Broadcasting Services under the Telecommunications Act, 2023” (dated February 21, 2025).
17. Authorization Period: The authorization for digital radio broadcasting should last 15 years.
18. Gross Revenue Definition: The definition of Gross Revenue from the Phase-III FM Radio Policy Guidelines (notified by MIB on July 25, 2011) is retained.
19. Streaming Revenue: Revenue from streaming radio channels should be included in Gross Revenue if provided by the broadcaster.
20. Authorization Fee: The fee should be based on Adjusted Gross Revenue (AGR), calculated as Gross Revenue minus non-broadcasting-related revenue items and GST.
21. Annual Fee Structure:
    • 4% of AGR for ‘A+’, ‘A’, ‘B’, ‘C’, and ‘D’ category cities.
    • 2% of AGR for ‘Others’ and ‘E’ category cities (border, hilly areas, NE, J&K, Ladakh, and Island Territories) for the first three years, then 4% thereafter.
22. Frequency Ownership Limit: No entity should hold more than 40% of spot frequencies in a city, with a minimum of three different operators per city.
23. Auction of Frequencies: Two new spot frequencies per city (in ‘A+’ and ‘A’ categories) should be auctioned initially. Further auctions will depend on the outcome of this phase and the growth of the receiver ecosystem.
24. Genre Flexibility: Broadcasters can choose genres for their multiple channels based on market demand.
25. Programme and Advertisement Codes: The Central Government should establish separate codes for terrestrial radio services.
26. Non-Operational Penalties: If services are not operational within 24 months, the frequency assignment will be revoked, and the entity will be barred from bidding for another frequency in the same city for five years.
27. Infrastructure Sharing: Prasar Bharati should share its land, tower, and common transmission infrastructure with private broadcasters at concessional rates, covering operational costs. Mandatory co-location requirements should be eliminated, allowing voluntary infrastructure sharing with other broadcasting, telecom, or infrastructure entities.
28. Reserve Prices for Spectrum Auction (in Rs. crore):
    • Chennai (A+): 146.68
    • Delhi (A+): 177.63
    • Kolkata (A+): 79.96
    • Mumbai (A+): 194.08
    • Ahmedabad (A): 40.44
    • Bengaluru (A): 87.22
    • Hyderabad (A): 65.85
    • Jaipur (A): 26.89
    • Kanpur (A): 20.52
    • Lucknow (A): 24.59
    • Nagpur (A): 29.48
    • Pune (A): 41.26
    • Surat (A): 25.89
29. Payment Options for New Bidders: Successful bidders should have flexible payment options for the bid amount, similar to telecom spectrum auctions.
30. Payment Options for Migrating Operators: Existing operators migrating to simulcast mode should also have flexible payment options for the migration amount.
31. Instalment Payment Structure:
    • For bid or migration amounts paid in instalments, 66.67% of the Auction Determined Price (ADP) or ADP minus prorated NOTEF (for migration) should be recovered equally over 15 years, with the remaining 33.33% distributed as:
      • 0% in the first five years.
      • 1/3rd in the next five years (equally distributed).
      • 2/3rd in the final five years (equally distributed).
    • The Net Present Value (NPV) of instalments should be protected using the one-year MCLR of the State Bank of India.

Digital radio broadcasting offers significant advantages over analog, including the ability to broadcast three digital channels and one data channel alongside one analog channel on a single frequency in simulcast mode. Digital channels provide superior audio quality, while the data channel enables value-added services. This transition creates new opportunities for broadcasters and enhances listener experiences in a competitive market.