TRAI unveils digital radio policy framework, sets reserve prices in 13 cities

The Telecom Regulatory Authority of India (TRAI) has released its recommendations for formulating a digital radio broadcast policy for private broadcasters.

The proposal lays down the roadmap for India’s transition from analog FM to digital radio, along with licensing conditions, auction rules, and reserve prices for spectrum across key cities.

The Ministry of Information and Broadcasting (MIB) had sought TRAI’s inputs in April 2024 on how to frame a digital radio policy for the private sector. Following a consultation paper released in September 2024 and an open house discussion in January 2025, TRAI has now issued its final recommendations.

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Simulcast model and migration path

TRAI has recommended that digital radio services should be launched in a simulcast mode. This would allow a broadcaster to transmit one analog FM channel, three digital channels and one data channel on a single assigned frequency. The simulcast system aims to ensure a smooth transition for listeners and broadcasters.

Existing FM broadcasters will be given the option to migrate to simulcast on a voluntary basis. For migration, they will be required to pay the difference between the auction-determined price of spectrum in a city and the proportionate one-time entry fee already paid for their current licence period.

A six-month window will be given to exercise this option after the completion of the auction.

Once broadcasters opt for digital services, they will need to commence operations within two years. TRAI has suggested that the government should decide on a sunset date for analog FM broadcasting at a later stage, after assessing the progress of digital radio adoption.

Technology and infrastructure

The regulator has emphasised that India should adopt a single digital radio technology standard for services in the VHF Band II frequency range. The government can finalise this technology either through consultations with broadcasters and receiver manufacturers, through the auction process, or by another method it considers suitable.

To encourage efficient rollout, TRAI has proposed the creation of a new category called ‘Radio Broadcasting Infrastructure Provider’. These entities can develop and lease out both active and passive infrastructure to broadcasters, although this will not be mandatory for starting digital services.

Further, Prasar Bharati has been asked to share its land, towers and common transmission infrastructure with private broadcasters at concessional rentals, while fully recovering operational costs.

Pricing and authorisation terms

The recommendations set the authorisation period for digital radio broadcasting at 15 years. Broadcasters will pay an annual authorisation fee of 4 percent of their Adjusted Gross Revenue (AGR).

For border, hilly and island territories, the fee will initially be 2 percent of AGR for the first three years, and then 4 percent thereafter.

The revenue definition follows existing FM Phase-III policy guidelines. Income from online streaming of terrestrial radio channels will also be counted in gross revenue if the streaming is operated by the broadcaster itself.

TRAI has also placed restrictions on market concentration. No single entity will be allowed to own more than 40 percent of the total frequencies in a city. At least three different operators must be present in each city to ensure competition.

Read On: TRAI notifies reserve prices for FM auctions; industry flags gaps

Reserve prices in A+ and A cities

TRAI has recommended conducting auctions to facilitate the rollout of digital radio services in four ‘A+’ and nine ‘A’ category cities. The reserve prices set for these locations highlight the commercial value of spectrum in the metros as well as regional hubs.

In the four metros, the reserve prices are as follows: Mumbai at Rs 194.08 crore, Delhi at Rs 177.63 crore, Chennai at Rs 146.68 crore, and Kolkata at Rs 79.96 crore.

In ‘A’ category cities, Bengaluru carries the highest reserve price at Rs 87.22 crore, followed by Hyderabad at Rs 65.85 crore. Other cities include Pune at Rs 41.26 crore, Ahmedabad at Rs 40.44 crore, Nagpur at Rs 29.48 crore, Jaipur at Rs 26.89 crore, Surat at Rs 25.89 crore, Lucknow at Rs 24.59 crore, and Kanpur at Rs 20.52 crore.

Two new spot frequencies in each of these 13 cities will be auctioned in the first phase. Auction of remaining frequencies will be considered later, depending on adoption rates and receiver ecosystem development.

Listener benefits and market impact

According to TRAI, digital radio broadcasting will provide a superior audio experience compared to analog FM. The technology will allow multiple channels on a single frequency, offering more programming variety to listeners and new revenue opportunities for broadcasters.

The addition of a data channel will also enable value-added services such as text and information services alongside audio.

Broadcasters will be free to choose the genres of their multiple digital channels, with market forces determining the programming mix.

The government has also been advised to issue an advisory for ensuring that digital radio receivers are made available in mobile phones and car infotainment systems, in line with an earlier directive for FM radio availability in handsets.

TRAI has said that the introduction of digital radio will create more competition, expand consumer choice, and help broadcasters diversify content offerings.

The regulator believes that the simulcast model will provide a balanced path to transition, preserving existing FM services while enabling growth of digital platforms.