RadioandMusic
| 25 Jun 2021
Reserve price for FM radio channels in Phase III for the 253 new cities to be 80 per cent of valuation of each city

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) today, recommended that the reserve price for FM Radio channels for Phase III in a new city is to be set equal to 0.8 times the valuation of FM Radio channels in that city.

Thus, TRAI said the reserve price for FM radio channels for each of the 253 new cities has been fixed at 80 per cent of the valuation for each city.

In its recommendation on the recommendations of the reserve price for all the 253 new cities, TRAI also said the RPs in 11 border cities in the ‘Others’ category in Phase-III should be Rs 5 lakh per channel, as approved by the Cabinet in the Phase-III policy.

In a consultation paper, after considering all comments received from stakeholders during consultation process and further analysis of the issues, TRAI said the valuation of FM radio channels in 253 new cities has been worked out as a simple means of the three valuation approaches. The approaches are based on the population of the city; per capita Gross State Domestic Product (GSDP), listenership of FM Radio and per capita Gross Revenue earned by the existing FM Radio operators.

The regulator said it had received a letter from the Ministry on 16 December seeking recommendations of the Authority on reserve prices for auction of FM Radio channels in 264 new cities as per the Phase-III policy guidelines.

In all, 831 FM Radio channels in these cities are proposed to be auctioned through an ascending e-auction process as provided in the Phase-III policy.

Out of the 264 new cities, 253 cities have a population more than one lakh, according to the census data 2011 and are classified as B, C, and D category cities. There are 798 FM Radio channels in these 253 cities which are proposed to be put up for auction.

The remaining 11 cities, having a population less than 1 lakh, are in the border areas of Jammu & Kashmir (J&K) and the North East (NE) region. There are 33 FM Radio channels in these 11 cities which are proposed to be put up for auction.

TRAI issued a consultation paper on ‘Reserve Price for auction of FM Radio channels in new cities’ on 6 February. All the comments received were posted on the TRAI website. Subsequently, an Open House Discussion was conducted by TRAI with all the stakeholders on 9 March at New Delhi.

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