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FM Phase III licence fees
What it is
The framework under which private FM radio operates, with licences won at auction and an annual fee payable as a percentage of gross revenue, alongside migration terms from earlier phases
Draft Telecommunications (Television, Radio and Associated Services) Rules, 2026 would consolidate FM Phase III guidelines with uplinking, DTH, HITS, community radio and IPTV rules under the Telecommunications Act, 2023, offering licensees a migration choice
Impact on industries
- Revenue-share licence fees are a fixed claim on a declining medium - the obligation does not fall when listening or advertising revenue does
- Auction-won licences were priced in an era of stronger radio economics, so carrying cost sits above what current advertising supports in weaker markets
- Consolidation under the 2023 Act with a migration option could simplify a fragmented licensing regime and give operators a route to better terms
- Radio's role has shifted toward local advertising, events and digital audio extensions, so licence economics matter less than the medium's ability to move beyond broadcast