Pace of adoption and integration of digital receivers will be key for growth of digital radio services in India

The Telecom Regulatory Authority of India recently released its recommendations for a policy framework which proposes single technology adoption and simulcast mode among others. The pace of adoption and integration of digital radio receivers in consumer equipment such as car infotainment systems, mobile phones and music systems will be critical in making this a viable venture for private players.

What is the current radio landscape in the country?

The existing radio landscape consists of the public broadcaster, All India Radio (AIR) operates 591 stations and 388 private FM radio stations managed by 32 private FM radio broadcasters. In the third batch of Phase-III, 63 FM radio channels in 43 cities have been successfully auctioned in July this year. Currently, radio signals are largely transmitted in analogue mode with an exception of All India Radio which initiated digitisation across 35 medium wave and 5 short wave transmitters as a limited service. However, digital radio has not been rolled out across FM transmitters and there is no private participation.

A committee set by Information & Broadcasting Ministry has identified 109 new channels across 13 top cities for the first phase roll-out of digital radio and had sought TRAI’s recommendations. The regulator has now released its recommendations for digital policy framework suggesting auction of frequencies for digital radio channels and set reserve prices for these 13 cities.

What are the benefits of digital radio?

It provides a better listening experience across both audio quality and user interface. Unlike anlogue radio, digital radio enables broadcast of 3-4 channels on a single frequency carrier providing more options to listeners. Digital radio operators therefore have more ad inventory to sell and charge higher rates based on segmented audiences. The size of the radio industry is pegged at $25 billion in 2024 and projected to grow to $30 billion by 2027. As per ICEA report released in 2022, implementation of digital radio could enable doubling of the segment’s revenues within five year of implementation.

What is TRAI’s recommendations on digital radio technology adoption and mechanism for transition to digital radio by private players?

Currently, there are four key radio technologies adopted globally, including Digital Audio Broadcasting (DAB/DAB+), Digital Radio Mondiale and HR Radio depending on frequency bands. The regulator has recommended adoption of a single digital radio technology standards in India. This is in line with industry players’ view that a single digital radio technology should be adopted to reduce costs, ensure greater accessibility and avoid market fragmentation. However, the players are divided between adopting DRM and HD Radio. TRAI has therefore commended that the government should take a call on the suitable digital radio technology in India.

It has also recommended simulcast mode for migration of existing analog FM Radio broadcasters or commencing services by new broadcasters. The proposed simulcast mode will enable operators to broadcast one analogue, three digital and one data channel on the assigned spot frequency.

In the past, industry bodies have also batted for the simulcast mode for the foreseeable future and have pointed out that there has not been a total migration in any country from analogue to digital. Also, they have pointed out that analog receivers are much cheaper and widespread in the country unlike digital radio receivers, which will see reduction in cost depending on the volumes.

What’s TRAI’s views on development of the digital radio ecosystem in the country and its viability for private players?

The regulator noted in its recommendations that once digital radio services are decided to be rolled out, it is understood that it would take two years for the rollout of the services and about three years for the device ecosystem to fully develop. Hence, the listenership during first 5 years will be very less fetching little or negligible advertisement revenue. It further noted that revenues for digital radio broadcasters are solely dependent on advertising, the growth of listenership and hence commercial returns will be directly tied to the penetration of receiver devices. In the wake of these factors, TRAI has recommended that recommended that for the first five years digital radio players should pay “nil” bid amount while recommending various mechanisms for structuring instalments post five years and has suggested various mechanisms for payment of bid amount in installment post the first five years.

Published on October 9, 2025

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