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“Corrective step, but delayed”: TRAI’s proposed FM reform plan faces industry skepticism
As TRAI pitches sweeping reforms- cutting spectrum reserve prices, easing payment norms, and proposing news on private FM, industry veterans hail the intent but warn that delays, half-measures, and government control could make it “too little, too late” for a sector struggling to survive against digital rivals.
For decades, private FM radio in India has been restricted to music, entertainment, and limited information capsules, with news exclusively reserved for public broadcaster All India Radio (AIR).
India’s FM radio industry, once the heartbeat of urban entertainment, is at a crossroads. The Telecom Regulatory Authority of India (TRAI) has unveiled a set of sweeping reforms that could reshape the future of private FM broadcasting- slashing reserve spectrum prices, introducing flexible payment options, and, most notably, recommending that private players be allowed to broadcast news for the first time in two decades.
The proposals, outlined in TRAI’s latest recommendations on FM spectrum auctions, mark the boldest attempt yet to revive a sector battered by declining ad revenues, rising costs, and the meteoric rise of digital audio streaming.
Yet, while many see promise, the industry remains deeply skeptical about whether these changes can be implemented swiftly enough to matter.
A Long-Overdue Reform
For decades, private FM radio in India has been restricted to music, entertainment, and limited information capsules, with news exclusively reserved for public broadcaster All India Radio (AIR). TRAI now proposes lifting that ban- up to 10 minutes of news and current affairs per hour, under the government’s programme code.
“This is a corrective step,” said Sonam Chandwani, Advocate at KS Legal.
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“If implemented with adequate safeguards, news on private FM could shift radio from being just an entertainment medium to a platform for civic engagement and localised information dissemination. But its success depends on whether this translates into sustainable business models rather than controlled state-approved feeds.”
Legal experts argue that opening up news aligns with democratic principles, giving India’s most accessible medium- especially in rural and semi-urban markets- a more meaningful public utility role.
“This is not just an economic reform but a constitutional step forward,” said Dinesh Jotwani, Co-Managing Partner, Jotwani Associates. “It expands the plurality of voices and strengthens citizens’ informational rights, provided safeguards against misinformation and editorial misuse are in place.”
Industry Says: Welcome, But Where’s the Urgency?
For radio veterans, the move has been a long time coming- but its delayed execution may blunt its impact.
“All the reforms are much needed, especially allowing news,” said Vineet Singh Hukmani, founder and former MD of Radio One 94.3.
“But if news again means carrying AIR feeds, it won’t work. On reserve price reduction and infrastructure sharing, TRAI needs to push harder. Many FM players may not renew licenses in 2030 due to poor returns. These steps are in the right direction but already feel a little too late. The industry doesn’t have the luxury of time.”
The sense of urgency was echoed by a senior executive from another FM network, who warned that fresh spectrum auctions have lost relevance.
“The industry’s appetite for new licenses has collapsed especially in Category A,B and C. Cost reductions matter most in large cities, but current reforms focus on smaller towns where revenue opportunities are limited (Category E).
And on news- if it’s just rebroadcasting AIR, it won’t build credibility. Unless reforms address core market sustainability, radio will keep withering.”
The Business Reality
TRAI earlier reported that advertising revenue for private FM radio was ₹2,382 crore in FY 2018-19, dropped to ₹941 crore in FY 2020-21 during the pandemic, and had recovered to ₹1,819 crore in FY 2024-25, which is still below the pre-COVID level.
Against this backdrop, TRAI has proposed reducing spectrum reserve prices from 80% to 70% of valuation, and introducing a new “Category E” for small towns with lower entry barriers- ₹3.75 lakh reserve price and a ₹30 lakh minimum net worth requirement. Payment flexibility and fee rationalisation are also on the table.
“This is encouraging and shows genuine understanding,” said Nisha Narayanan, Director & COO of Red FM & Magic FM.
“But implementation is what matters. The industry has seen positive recommendations before, but without timely action they mean little. If the government acts quickly this time, radio can realise its full potential.”
Despite optimism, the reforms face several hurdles.
Industry stakeholders point to policy disconnects between TRAI and the Ministry of Information & Broadcasting, which has often downplayed the sector’s challenges. There are also thorny legal questions around editorial responsibility, sourcing of news, and regulation under the Cable Television Networks Act.
For many, the issue is not intent but execution.
“The proposals are welcome, but without speed and clarity, the industry risks bleeding out before help arrives,” said one broadcaster.
Another questioned the trust and credibility lost in the authority, who, according to him, for the longest has put a blind eye to the hurdles being faced by the industry.
In essence, TRAI’s recommendations may be the last big opportunity to reset Indian FM radio. Whether they spark a revival- or become another policy file lost in bureaucratic limbo- will decide if radio remains a relevant public medium or fades into nostalgia in the age of digital streaming.
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