TRAI Issues Recommendations on Reserve Prices for FM Radio Channel Auctions
The Telecom Regulatory Authority of India (TRAI) has unveiled its recommendations regarding the reserve prices for the auction of FM radio channels. This initiative, prompted by the Ministry of Information and Broadcasting (MIB), aims to facilitate the expansion of private FM radio services in 18 cities across Himachal Pradesh, Uttarakhand, and Jammu & Kashmir. The recommendations also cover additional cities, including Bilaspur, Rourkela, and Rudrapur, with specific reserve prices set for each location.
Consultation Process and Stakeholder Engagement
On August 1, 2024, TRAI issued a consultation paper to gather feedback from stakeholders on the proposed reserve prices for FM radio channel auctions. This paper invited comments and counter-comments, which were made publicly available on TRAI’s website. Following this, an Open House Discussion took place on October 10, 2024, allowing stakeholders to engage directly with TRAI officials. The feedback collected during this process was crucial in shaping the final recommendations. TRAI carefully analyzed all inputs before finalizing its proposals, ensuring that the recommendations reflect the interests of both the government and private broadcasters.
Key Recommendations for Reserve Prices
TRAI has set specific reserve prices for the auction of FM radio channels in various cities. For Bilaspur in Chhattisgarh, the reserve price is established at Rs. 0.83 crore. Rourkela in Odisha has a reserve price of Rs. 1.20 crore, while Rudrapur in Uttarakhand is set at Rs. 0.97 crore. Additionally, for cities categorized as ‘E’, the reserve price is recommended to be Rs. 3.75 lakh. The minimum net worth requirement for bidders in these cities is proposed at Rs. 30 lakh, while existing guidelines for other city categories remain unchanged. The recommendations also outline the terms and conditions for frequency assignment, including payment methodologies and obligations for successful bidders.
Financial Sustainability Measures for FM Radio Operators
To ensure the financial viability of FM radio operators, TRAI has proposed several measures. One significant recommendation allows private FM radio operators to broadcast news and current affairs programs for up to 10 minutes each hour. Furthermore, the annual authorization fee for operators in category ‘E’ cities will be set at 2% of Adjusted Gross Revenue (AGR) for the first three years, increasing to 4% thereafter. The definition of Gross Revenue will include revenue from streaming services provided by radio operators. TRAI also suggests that the annual license fee be calculated as a percentage of AGR, delinking it from the Non-Refundable One Time Entry Fee.
Infrastructure Sharing and Payment Flexibility
TRAI recommends that Prasar Bharati share its land and tower infrastructure with private broadcasters at concessional rates, ensuring that operational expenses are fully recovered. Successful bidders will have multiple payment options for their bid amounts, similar to the spectrum auction process managed by the Department of Telecommunications. Additionally, the mandatory co-location of transmission infrastructure is proposed to be removed, allowing authorized entities to share infrastructure voluntarily with broadcasting and telecom service providers based on technical and commercial feasibility.
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