₹6,828.77 crore in 25 years: How private FM radio quietly bolstered government revenues
The combined reading of the 2023–24 and 2024–25 reports suggests that while FM radio is unlikely to dramatically scale government revenues going forward, it will continue to deliver predictable cash flows.
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Private FM radio broadcasting, often overshadowed by digital and television media in headline conversations, continues to play a quiet but significant role in contributing to government revenues. An analysis of the Ministry of Information & Broadcasting’s Annual Reports for 2023–24 and 2024–25 shows that the sector remains a consistent fiscal contributor through a multi-layered fee and licensing structure, even as the industry grapples with slowing ad growth and rising operating costs.
Since the inception of private FM radio broadcasting in 2000, the Government of India has earned ₹6,828.77 crore (approximately) from private FM broadcasters, according to official disclosures. This revenue accrual comes through five primary channels Non-refundable One Time Entry Fee (OTEF), Non-refundable One Time Migration Fee, Annual Licence Fee (ALF), Tower rental charges and Processing fees.
As per the 2023–24 Annual Report, cumulative government earnings from private FM radio broadcasting since 2000 stood at ₹6,647.77 crore. The 2024–25 report updates this cumulative figure to ₹6,828.77 crore, implying an incremental addition of ₹181 crore within a year.
Both the 2023–24 and 2024–25 annual reports reiterate that FM radio, despite being a mature medium, continues to generate predictable, annuity-like revenue streams for the Centre, particularly via annual licence fees that are indexed to radio broadcaster revenues.
A key takeaway from the annual report is the continued dominance of Annual Licence Fees as the largest recurring revenue source from FM radio. Under the Phase III policy regime, private FM operators are required to pay a fixed percentage of their gross revenue as licence fees. This structure ensures that even modest growth—or stability—in radio advertising translates into assured income for the government.
While the reports do not flag sharp year-on-year jumps, they underline the stability of collections, an important contrast to more volatile spectrum-driven revenues from telecom or one-time auction windfalls from other media segments.
The documents also highlight the enduring contribution of One Time Entry Fees and Migration Fees, especially from radio broadcasters that transitioned from Phase II to Phase III licensing. Although these are non-recurring by design, they continue to form a meaningful part of cumulative revenue when viewed over the 25-year arc of private FM operations.
This long-tail revenue effect underscores how early policy design decisions in FM radio—particularly upfront entry pricing—have had lasting fiscal implications.
Beyond licences, tower rentals and processing fees—often overlooked in headline numbers—add incremental but steady income. The reports indicate that government-owned infrastructure continues to be leveraged by private broadcasters, especially in smaller cities where private tower economics are less viable.
These charges, while smaller in absolute terms, reinforce FM radio’s role as a low-risk, infrastructure-light revenue contributor.
Notably, the government’s revenue narrative contrasts with the financial stress faced by FM broadcasters, which the reports acknowledge indirectly through references to policy consultations and ease-of-doing-business measures. Advertising growth has been uneven, and radio broadcasters have repeatedly sought relief on licence fee calculations and auction reserve prices.
Yet, from a fiscal standpoint, FM radio remains a reliable, low-volatility revenue line item—a characteristic increasingly valued amid fluctuating receipts from other communication sectors.
The combined reading of the 2023–24 and 2024–25 reports suggests that while FM radio is unlikely to dramatically scale government revenues going forward, it will continue to deliver predictable cash flows. Any future upside, officials note, would depend on policy reforms such as FM expansion into new towns, rationalisation of reserve prices, or greater commercial flexibility for broadcasters.
For now, private FM radio stands out as a mature media segment that, despite its challenges, has quietly delivered nearly ₹7,000 crore to the exchequer over two decades—making it one of the more dependable contributors within India’s media and broadcasting ecosystem.
