TRAI issues guidelines on FM Radio auctions; highest reserve price at Rs 1.2 crore

The Telecom Regulatory Authority of India (TRAI) has released its recommendations on reserve prices for the auction of FM radio channels, following requests from the Ministry of Information and Broadcasting (MIB) to expand private FM radio in several cities.

According to the TRAI release, the Ministry had sought guidance on reserve prices for FM channels in 18 Category ‘E’ cities in Himachal Pradesh, Uttarakhand, and the Union Territory of Jammu & Kashmir, as well as the cities of Bilaspur (Chhattisgarh), Rourkela (Odisha), and Rudrapur (Uttarakhand).

After a stakeholder consultation process that included public comments and an open house discussion, TRAI finalized its recommendations. Key highlights include:

• Reserve prices for FM channel auctions are set at Rs. 0.83 crore for Bilaspur, Rs. 1.20 crore for Rourkela, Rs. 0.97 crore for Rudrapur, and Rs. 3.75 lakh for Category ‘E’ cities.
• Minimum net worth requirement for Category ‘E’ cities is Rs. 30 lakh, while requirements for other cities remain as per existing FM Phase-III policy guidelines.
• Annual authorization fees will be 2% of Adjusted Gross Revenue (AGR) for the first three years in Category ‘E’ cities, increasing to 4% thereafter. AGR calculations will exclude GST.
• A maximum of three FM channels can be allocated to private broadcasters in Category ‘E’ cities, with existing limits retained for other city categories.
• TRAI recommended measures to support FM operators financially, including allowing private broadcasters to air up to 10 minutes of news per hour, delinking annual license fees from the non-refundable one-time entry fee, and permitting streaming of radio programmes without user control.
• The authority also suggested sharing of Prasar Bharati’s land, tower, and transmission infrastructure at concessional rates and providing flexible payment options for successful bidders.