Auto, Tech & FM sectors rally behind HD Radio, seek news broadcast clarity from TRAI

India’s digital radio transition is gaining momentum, with top players across the automotive, electronics and media sectors rallying behind HD Radio as the national standard. As the Telecom Regulatory Authority of India (TRAI) works on a long-awaited Digital Radio Broadcast Policy, Mercedes-Benz India, the India Cellular & Electronics Association (ICEA) and HT Media have urged the regulator to back a single technology standard, clear regulatory bottlenecks and roll out targeted incentives to smooth the shift.

TRAI’s consultation paper, released on September 30, 2024, seeks stakeholder views on technology options, regulatory frameworks and market readiness. The move is aimed at overhauling India’s analog FM ecosystem and expanding high-quality radio services to millions of listeners.

Mercedes-Benz Bats for Single Standard to Cut Costs and Boost Safety

Luxury carmaker Mercedes-Benz India has made a strong case for adopting a single, nationally consistent digital radio technology, warning that a fragmented approach would raise costs, hurt interoperability and frustrate users—particularly in the automotive segment, where consistency in in-car infotainment systems is critical.

Drawing on its global experience with DAB/DAB+, HD Radio and DRM, the company identified HD Radio—already mainstream in North America and compatible with both VHF Band II and AM bands—as the most viable option for India. “HD Radio allows broadcasters to transmit both digital and analog signals simultaneously, maintaining service continuity while improving content capacity and quality,” Mercedes-Benz said in its submission dated October 28, 2024.

The automaker cautioned that multiple standards could lead to driver distraction and discourage adoption due to regional incompatibilities. A unified approach, it said, would lower production costs, deliver a consistent user experience and unlock advanced services such as real-time traffic, weather and emergency alerts.

Regulatory Clarity, Editorial Leeway

HT Media, which runs one of India’s largest private FM networks, has thrown its weight behind the digital shift, but with a caveat: regulatory clarity. The company urged TRAI and the government to set a clear roadmap for private broadcasters and allow them to air self-curated news and current affairs on digital platforms—something currently barred under Ministry of Information & Broadcasting rules.

HT Media argued that digital radio can empower private broadcasters to deliver localized, real-time news and emergency alerts, expanding radio’s democratic role as a trusted public information channel.

The submissions mark a significant shift toward consensus around HD Radio, which allows hybrid analog-digital broadcasting using existing FM/AM infrastructure. Unlike DAB+, which requires new frequencies and transmission networks, HD Radio can be layered onto the current ecosystem—reducing transition costs and enabling gradual migration.

Stakeholders say this hybrid model could transform how Indians access regional and local news, especially in low-connectivity zones. By combining superior audio quality with text-based alerts, HD Radio could anchor the next generation of public information infrastructure.

Beyond technology, broadcasters want editorial independence. FICCI and AROI have called on the government to allow private digital operators to broadcast self-curated news and current affairs alongside AIR bulletins. They argue that this would strengthen plurality, enable localized programming and bring radio in line with other media platforms. They also want analog FM program codes extended to digital services and licence fees capped to encourage competition.

ICEA Pushes Phased Rollout to Build Scale

The India Cellular & Electronics Association (ICEA), representing global tech majors and domestic manufacturers, backed the HD Radio proposal and called for a three-phase rollout to ensure smooth integration across devices.

The plan starts with automotive integration, bringing Indian cars in line with global standards, followed by wireless speakers and headsets to tap into the booming audio accessories market, and finally mobile devices, including feature phones and smartphones, as antenna and chipset technology matures.

“Multiple technologies will only fragment the market, raise costs and create compatibility issues,” said Rishabh Ahuja, Assistant Manager – Public Policy, ICEA. “A unified HD Radio standard ensures economies of scale, lower device costs and a consistent experience for users nationwide.”

ICEA also proposed tax breaks, subsidies and closer coordination between chipset makers and OEMs to cut component costs. With 60 million feature phones still sold annually, the association believes they can play a pivotal role in driving early mass adoption of digital radio.

Industry divided over DRM vs HD Radio

Despite the growing consensus, the sector remains divided between HD Radio and DRM, with FICCI and the Association of Radio Operators for India (AROI) urging the government to take a final call based on cost, reach and ecosystem readiness.

Both bodies have stressed that the digital transition will need heavy financial support. They have urged the government to provide infrastructure subsidies for broadcasters, consumer incentives for receiver purchases, and to retain the annual licence fee at 4% of net advertising revenue to ease pressure. They also want longer licence tenures to incentivise early migration.

The high cost of receivers remains a major barrier. At present, digital receivers are found mostly in premium cars and a handful of standalone products. Industry players are pushing for Make-in-India initiatives, consumer subsidies and volume-based pricing to bring down costs and accelerate adoption.

All stakeholders agree that analog FM and digital radio must run side by side for years to ensure no listener is left behind. With FM penetration exceeding 80%—especially in rural and low-income regions—an abrupt switch would be both commercially unviable and socially regressive.

Industry groups have recommended piloting digital services in major cities before expanding nationwide, with simulcast mandated until affordable receivers achieve mass penetration.

TRAI’s recommendations will shape the Ministry of Information & Broadcasting’s digital radio policy, covering standards, content rules and implementation timelines. If the regulator backs industry calls for HD Radio and a unified standard, India could soon embark on a phased digital rollout that blends cutting-edge audio technology with the mass reach of traditional radio.

But industry leaders caution that without regulatory clarity, fiscal incentives and a strong transition roadmap, the promise of digital radio could remain stuck at the consultation stage.

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