Sunday, April 12, 2020

TRAI issues recommendations on reserve price for auction of FM radio channels

The Telecom Regulatory Authority of India on Saturday recommended that the reserve price for FM radio channels for 273 new cities has been fixed at 80 per cent of the valuation for each city.

Consultation Paper on Reserve Price for auction of FM Radio channels can be downloaded here :


Comments on  digital radio :

Excerpts :

2.24  Presently radio signals are largely transmitted in analog mode in the country. Analog terrestrial radio broadcasting, when compared with digital mode, is inefficient and suffers from operational restrictions. With the advancement in technologies, digital radio technologies around the globe have been developed and adopted by several countries in order to offer more choice to listeners along with efficient use of spectrum. Digital Radio broadcasting provides a number of advantages over analog radio broadcasting. The biggest advantage of digital radio is that it is possible to broadcast three to four channels on a single frequency carrier while ensuring excellent quality of audio for all the channels whereas analog mode broadcasts only one channel on a frequency carrier.

2.25 Looking at the advantages of digital radio broadcasting and in order to develop an eco-system, which can facilitate deployment of digital radio broadcasting, TRAI had suo-motu sent its recommendations on "Issues related to Digital Radio Broadcasting in India" to the government on 1st February 2018. The Authority while framing these recommendations noted that the Phase-III policy guidelines mandate radio broadcasting using analog FM technology and does not permit use of any other radio broadcasting technology. The Authority also noted that in Phase-III expansion of FM radio, 966 FM radio channels were made available for auction. Auction of FM radio channels for Phase-III were conducted by MIB in two batches in 2015 and 2016, wherein a total of 162 FM Radio channels were successfully auctioned indicating that MIB would be required to auction remaining 804 FM radio channels.

2.26 In light of above, the Authority was of the view that in order to facilitate smooth transition to digital radio broadcasting, Phase-III policy should be revised to permit use of any transmission technology, analog or digital or both, for channels yet to be auctioned, which can provide radio 19 broadcasting services in the 88 – 108 MHz. 
Accordingly, the Authority in its recommendations dated 1st February 2018 recommended that: "The auction of remaining channels of Phase-III should be done by delinking them from technology. Broadcasters should be permitted to use any technology (analog or digital or both) for radio broadcasting on the frequency allocated to them through auction in future. In case Radio broadcasters opt for digital technology, they should be permitted to broadcast more than one channel subject to technical feasibility on single frequency allocated to them."

2.27 TRAI's recommendations on Digital Radio Broadcasting are still pending with MIB. In its reference dated 22nd August 2019 MIB has sought reserve prices in 283 cities wherein total 805 channels are available for auction in Phase-III. Therefore, the issue again arises whether the future auction of remaining channels of Phase-III may be done by delinking them from technology and Radio broadcasters may be permitted to use any technology (analog or digital) for radio broadcasting on the frequency allocated to them through auction in future based on their business plan.

2.28 In order to facilitate smooth transition to digital radio broadcasting, PhaseIII policy may need to be revised to permit use of any transmission technology, analog or digital or both, for channels yet to be auctioned, which can provide radio broadcasting services in the 88 – 108 MHz. However, in FM technology only one Radio channel is possible on a single frequency, whereas in digital technologies multiple channels are possible on single frequency. One may argue that in order to provide level playing field between the operators using analog and digital technologies both should be allowed to broadcast one channel on single frequency. On the other hand, some may argue that operators using digital technologies 20 should be incentivized by permitting them to broadcast more than one channel on single frequency. Stakeholders may provide their comments.

(Source :  The Telecom Regulatory Authority of India)

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