Trai’s FM radio plan: Operators flag cost issues, rising digital competition | Mint

New Delhi: Radio operators have raised concerns about pricing and operational challenges in response to a consultation paper issued by the Telecom Regulatory Authority of India (Trai) on reserve prices for FM radio channel auctions under the FM Phase-III Policy. 

Trai has scheduled an open house discussion with stakeholders on 10 October.

The Association for Radio Operators for India has said the last batch of frequencies auctioned failed, with less than 25% of the frequencies offered being bid for due to overpriced minimum reserve prices. 

“Subsequent Trai recommendations have corrected certain anomalies. However, flaws remain in auction methodology which may adversely affect new auctions, especially in smaller cities where there is little interest due to low revenue possibility and the high fixed cost such as annual fees and spectrum fees etc.,” the association said.

While acknowledging the right of Trai and the government to fix a minimum value, the association has said that the objective of expanding FM network into new towns should not be overlooked, because in most of towns there is little or no professional media to share local news and information. A professional media will create economic opportunities through advertising opportunities and large reach, it added.

Sambhaav Media Ltd, an Ahmedabad-based media group also noted that existing broadcasters face high operational costs, including infrastructure maintenance, staff salaries and other recurring expenses, which are not aligned with the lower capital expenditure for new entrants. 

“The increasing popularity of internet-based music streaming services and digital platforms has shifted consumer preferences away from FM radio. These platforms offer greater convenience, a vast selection of content and personalized experiences that traditional radio struggles to match,” the group has written in a letter to Trai. 

FM radio broadcasters find it challenging to attract and retain advertisers, they said, adding that the inability to secure this revenue makes it hard to sustain operations and invest in quality programming.

In September, Trai had released recommendations on issues related to FM radio broadcasting, including private FM Radio operators being allowed to broadcast news and current affairs programmes, limited to 10 minutes in each clock hour, besides removal of linkage to non-refundable one-time entry fee and extension of the existing FM licence period of 15 years by three years.