TRAI service authorisation: Some radio players on board, others seek smartphone FM push

TRAI’s latest recommendations regarding creating a framework for service authorisations in the broadcasting sector have sparked mixed reactions in the radio industry. While some say this is an attempt to address long-standing demands, others have raised concerns.

Association of Radio Operators for India (AROI), the official association of private commercial radio stations in India, noted that while most of TRAI’s recommendations are a welcome step towards industry growth and provide regulatory clarity, some aspects may require further discussion to ensure that they best serve the interests of private radio broadcasters.

Although the recommendations, introduced under the Telecommunications Act, 2023, outline a new regulatory framework set to shape the future of radio and broadcasting in India, they overlook a critical aspect: the incorporation of FM radios into mobile handsets, experts noted. This proposal, previously floated by the Ministry of Information and Broadcasting, is yet to materialise.

Considering India’s 650 million smartphone users, such a move could have significantly boosted the radio industry’s reach, fostering stronger connections with Gen Z, tapping into a vast, digitally savvy audience, said experts.

According to Nisha Narayanan, COO & Director, Red FM & Magic FM, the recommendations do not address the discussion on enabling FM radio on mobile phones. In today’s digital era, where mobile devices dominate content consumption, radio must be seamlessly integrated into mobile handsets without being restricted to internet streaming.

FM radio has the potential to reach the last mile, she noted. “It functions flawlessly during emergencies, public safety situations, and moments of national significance that require immediate reporting, precisely because of its live and 24x7 nature. Ensuring its availability on mobile devices is crucial to maintaining FM radio as an accessible and relevant medium for the masses.”

Further, TRAI has also recommended that the Ministry of Information and Broadcasting (MIB) needs to re-evaluate city-wise allocation of FM radio frequencies vis-à-vis a district-wise allocation model, considering industry maturity and technological advancements.

A source suggested that the recommendations were not a well thought-out proposition and would create issues in terms of infrastructural capabilities and other factors.

Speaking from a community radio perspective, Archana Kapoor, who is the founder of Radio Mewat (a community radio operating in Nuh, Haryana), said the decision seems to be influenced by the interests of various stakeholders, including broadcasters, telecom operators, and device manufacturers, who benefit from data-driven digital media consumption rather than allowing free, offline access to FM radio.

She further asserted that in situations of internet shutdowns, natural disasters, or power outages, FM radio remains the most reliable and accessible medium for real-time information, especially in rural and disaster-prone areas. “In our country, with a vast rural and economically disadvantaged population that still relies on radio or inexpensive tools for information, education, and entertainment in their own dialects, not mandating FM chips in mobile phones could further exclude these communities.”

Kapoor also underlined that this shift also poses a significant challenge to radio as a medium, which operates as a nonprofit, community-led platform. The entry of private sector players into district-level allocations could undermine the role of grassroots, community-driven broadcasting, potentially commercializing the space and silencing untrained local voices that community radios currently empower.

While expanding FM reach is crucial, it is equally important to ensure that community radios are protected and strengthened, rather than being overshadowed by profit-driven private broadcasters. Policymakers must create safeguards and exclusive provisions for community-led radio stations to retain their autonomy, accessibility, and purpose, Kapoor said.

Narayanan too raised concerns saying: “While the proposal to shift from city-wise to district-wise frequency allocation aims to improve coverage in smaller towns and rural areas, it raises concerns about feasibility and market dynamics. Radio’s success lies in its hyperlocal appeal, and any changes to the allocation model must carefully balance expansion with economic viability for existing players,” Narayanan said.

Moreover and most importantly, the appointed date for various sections of the new Act is yet to be announced, leaving room for further deliberation on its implementation. This creates ambiguity within the industry.

Meanwhile, Uday Chawla, Secretary General of AROI said, “AROI requests MIB minister Ashwini Vaishnaw to ensure early implementation of these recommendations.”

Talking about the positives, experts pointed out that the recommendations call for a structured authorisation framework for broadcasting services, replacing the existing licensing model. Radio players refer to this shift as aimed at simplifying the regulatory process, removing redundant bureaucratic hurdles, and ensuring a seamless transition for broadcasters to a more dynamic and technology-friendly regime.

A technology-neutral approach has been recommended to facilitate the transition to digital broadcasting. This will allow broadcasters to adopt any suitable technology without being restricted to specific transmission methods, thereby encouraging innovation, efficiency, and broader audience reach.

Delinking service authorisation for Terrestrial Radio Services from frequency assignment, meaning the auction of spectrum for frequency allocation will now be conducted separately from licensing, as per TRAI. This separation enhances transparency, ensuring that spectrum allocation is conducted in a fair and competitive manner, free from unnecessary regulatory dependencies, as per insiders.

Additionally, the authority recommends that broadcasters be permitted to air news and current affairs for up to 10 minutes per hour and provide live coverage of national sports events.

Narayanan highlighted that, for years, private FM radio was the only medium restricted from airing news, current affairs, and live sports while television, digital, and even international radio channels operated without such limitations. This long-overdue change has the potential to reshape FM radio’s role in the media ecosystem. Expanding content offerings will enhance listener engagement and unlock new revenue streams by attracting advertisers from previously untapped categories, thereby strengthening the industry’s overall ad pie.

As per the Pitch-Madison Advertising Report, radio advertising has seen a moderate growth of 8%, with a revenue increase of Rs. 2,462 crores. It held a 2% market share in 2024, similar to 2023.

The body has also proposed a separate Programme Code and Advertisement Code for private radio broadcasters, ensuring content regulation is tailored to the sector. As per them, this aims to bring greater clarity and autonomy to radio content guidelines while maintaining necessary oversight to uphold ethical standards and responsible broadcasting practices.

A voluntary infrastructure sharing between broadcasting and telecom providers has been proposed to optimise resource use. As per a source, “This encourages synergy between two major industries, ensuring efficient use of infrastructure, reducing costs, and improving service delivery, particularly in regions where setting up standalone broadcasting infrastructure may not be financially viable.”

Lastly, the licence renewal period is set at 10 years, with a financial framework that includes a 4% Adjusted Gross Revenue (AGR)-based license fee. This extended renewal period provides broadcasters with long-term operational stability, the source explained, while the AGR-based fee model ensures a predictable and fair financial obligation aligned with industry revenues.

These steps indicate a willingness to recognise radio as a critical player in India's media landscape, Narayanan stated. “As we embrace this new era, it is imperative that we continue the dialogue to address the missing elements and ensure FM radio is positioned for long-term, sustainable growth.”

Lauding the move, Chawla also praised TRAI for addressing the impediments affecting survival and growth of Private Radio in India through its latest recommendations on framework for authorization for provision of broadcasting services as well as on Issues related to FM Radio broadcasting in India.

Some other industry players are also preparing to make their suggestions on the TRAI recommendations.

Over the past five years, the radio industry has maintained a steady 2% share of the overall media market. Despite a sharp decline during the pandemic with revenues falling from Rs 2,260 crore to Rs 1,270 crore — the industry has shown signs of recovery. Revenue gradually climbed to Rs 1,733 crore, then to Rs 2,032 crore, reaching Rs 2,272 crore, and finally hitting Rs 2,462 crore last year. While this reflects a healthy growth rate of 8%, it still lags behind the broader market's growth of 9%, highlighting the need for continued innovation and expansion to close the gap.

Nevertheless, PMAR 2025 forecasts indicate that this 2% share will accelerate to 9% in 2025 with the help of government support and digital radios. The report stated that Indian radio stations are rapidly evolving beyond traditional FM inventory, integrating digital content to attract advertisers and expand their reach. Recognizing the shift in audience preferences and the dominance of digital platforms, radio networks are leveraging streaming, social media and digital-first strategies to offer advertisers a more dynamic and engaging ecosystem.