HT Media to Surrender Key FM radio Licenses as FM Radio Sector Sinks

NEW DELHI: In a disturbing development having direct implications for employment as well as government revenues, one of India’s largest media entities, HT Media Ltd and its subsidiaries have decided to surrender some key FM radio licenses across major metro markets -- proving yet again that faulty government policies for the FM radio sector have worsened the rapid decline of the common man’s medium.The development takes place even as the industry has petitioned government for an urgent and critical four point reforms formula which include applying the 4 per cent Adjusted Gross Revenue (AGR) model to Phase III license extensions post 2030 and not having fresh auctions for existing licenses --as well as making activation of FM radio receivers

mandatory on mobile phones given that these are now the principal means of accessing radio.In the latest exit move from an FM radio company, HT Media has, in a regulatory filing to stock exchanges on Thursday, said the boards of HT Media, Next Radio Ltd, and HT Music and Entertainment Co Ltd have approved the surrender of licenses for several radio stations operating under the brands Radio Nasha, Radio One and Fever FM. The stations impacted include Radio Nasha 91.9 FM in Mumbai, Radio One 94.3 FM in Delhi, Mumbai and Bangalore and Fever 91.9 FM in Chennai. Operations are expected to cease from June 15, 2026.It may be recalled that another very major media entity --TV Today Network—had exited radio operations in major cities recently as well. Big FM underwent insolvency proceedings and RED FM surrendered Magic FM in Mumbai — a frequency acquired during earlier auctions at extremely high valuations — because operating economics no longer made sense. Other existing radio companies had also shut down some radio stations, leading to a loss of thousands of direct and indirect jobs as well as adversely impacting government revenues –given that apart from DTH, FM radio is the only media sector that pays license fees to government.However, analysts warn that HT Media’s decision to surrender multiple FM radio licenses is not merely another media industry development. “It is a warning sign that India’s private radio industry — once seen as one of the country’s most influential mass media platforms — is being rapidly pushed towards sickness after paying out as much as Rs 4155 crore as one time auction entry fees alone”, said an industry representative. Another was more blunt: “Government apathy is killing the goose that lays the golden eggs, and it must extremely urgently announce measures to enable at least the survival of the sector”, he stressed.In this regard, FM radio industry association AROI (Association of Radio Operators for India) estimates that while India’s overall media and entertainment sector grew 9 per cent to reach Rs 2.78 trillion in 2025, radio revenues declined by 7 per cent to Rs 23 billion –the only media industry to do so. This is a structural symbol of unresolved negative policy challenges and FM chip deactivation in smartphones apart from the huge burden of asymmetric license fee structures.This trend, say industry experts, is a consequence of regulatory inaction, not market failure.The industry has, for years been pointing out that repeated spectrum auctions at extremely high reserve prices in the past due to what is alleged to have been an artificial scarcity of spectrum (given that even TRAI;s recommendations to halve channel separation to allow for double the number of frequencies was ignored), have severely damaged the sector. Several broadcasters acquired frequencies at sky high valuations that later became commercially unviable.Today, with 40 per cent of gross revenue consumed by government fees (GST at 18 per cent, Annual License Fee, tower/ spectrum charges and one time fee amortization), radio operators say they do not have the resources to invest in expansion and technology and are merely struggling to survive. As per AROI figures, the FM radio industry has paid out as much as Rs 999 crore in FY 25-26 alone, with GST at 18 per cent costing the industry Rs 150 crore annually in excess tax as compared to other media sectors at 5 per cent. Hence, in a fresh series of representations to government, AROI has urged four critical policy and regulatory corrections ie, a) permitting news and current affairs given that India is the only major democracy in the world where news is barred on FM radio, b) applying the 4 per cent Adjusted Gross Revenue (AGR) model to Phase III license extensions post 2030, and automatic extension of existing licenses for 25 years without having fresh auctions for existing licenses, c) reducing GST on FM radio from 18 per cent to 5 per cent to bring parity with other media sectors and d) making FM radio receiver activation on mobile phones mandatory.“The FM radio industry has been plagued with skewed regulations that have resulted in the highest auction fee, for instance Rs 169 crore in Delhi, being as much as five times the actual migration/extension fee”, said the industry representative, adding that “this demonstrates how the existing formula punishes operators for the shortage of frequencies in the 2015 auction –a situation purely beyond our control”. No major correction has been made by government despite the sector regulator TRAI (Telecom Regulatory Authority of India) recommending corrective measures several times in the last decade.While the government did tweak the policy to apply the correct 4 per cent AGR model for new auctions from 2025 onwards, industry has been stressing that this makes little difference as there were very few takers for the new auctions –and hence, AROI has emphasized that the only solution is to apply the 4 per cent AGR model to the extension of existing licenses beyond 2030 without triggering a fresh auction process. The industry has made it absolutely clear, say representatives, that a fresh auction is not viable given the structural shift in the advertising market.Another key and most basic demand is that government follow the TRAI recommendation to have FM radio receiver activation mandatory on smartphones. FM radio receivers were activated on all smartphones up to 2012, but were phased out in 5-6 years’ time. However, today given that around 90 per cent of FM radio is accessed on smartphones but many lack receivers, listeners are forced to access FM radio over paid data connections. This is a built-in disincentive for the vast bulk of the poor, radio being a common man’s medium. While the Union IT ministry had issued an advisory for smartphone manufacturers some years ago to correct this malpractice, it has not been adhered to by smartphone manufacturers.On the evergreen issue of news and current affairs on FM radio, another major frustration remains government’s refusal to allow private FM stations to broadcast independent news within a regulated framework. This, they say, is the single biggest missed opportunity for Indian radio. Music today is available everywhere through streaming apps and smart devices. Radio cannot compete with global technology companies on music libraries alone. What could truly differentiate FM radio is hyperlocal news, civic information, regional conversations and real-time city-level engagement. Yet the one reform that could make radio meaningfully different from global streaming platforms continues to remain blocked, they point out. Here, industry experts point out that the fear, seemingly, that the authorities will not be able to “regulate” news is unfounded, because social media has millions of influencers producing news without any control whatsoever –and they operate from any corner of the world and be accessed across the globe. In sharp contrast, FM radio operators are limited only to a 50 sq km area in their respective license areas --and in any case, follow the many laws, rules and regulations that the rest of the Indian media industry does. The above four principal proposals have been repeatedly outlined to the government for the last many years, but industry observers say they are surprised there have been no measures to improve the situation for over a decade of struggle –or even during COVID when many sectors received bailouts -- so as to enable the sickening FM radio industry to survive.Hence, it stands to reason, say broadcasters, that the next phase of licences (most expire by 2030) should be extended free of cost for existing operators, particularly after so many years of policy apathy and structural disruption caused by digital platforms. There is also a growing demand for outright removal of revenue-sharing obligations that continue to burden domestic radio companies while global streaming competitors operate under far lighter frameworks.Industry experts point to other irrational measures as well: Even after government removed the 15 per cent national ownership cap in 2022 to enable consolidation and scale, the 40 per cent city-level cap on FM radio ownership continues to remain. Under current rules, no broadcaster can own more than 40 per cent of frequencies in a city, with at least three operators required in every market. Industry executives argue that while such restrictions may have made sense during the early growth phase of private FM radio, today the sector competes not just with other stations but with global streaming platforms and digital audio giants. Hence, industry representatives suggest that the city-level cap should also be liberalised to allow for a higher figure, like say, 90 per cent with at least two operators per city. In fact, the industry is unanimous in arguing that today consolidation is no longer optional for radio — it is necessary for survival, much like what eventually happened in the telecom sector. However, mergers and acquisitions within radio have repeatedly faced long regulatory delays, causing severe financial uncertainty. Several potential combinations that would have strengthened the industry commercially, became irrelevant because approvals took years instead of months. Broadcasters privately admit that opportunities for meaningful consolidation were lost due to prolonged delays.Moreover, broadcasters believe retaining city caps limits meaningful consolidation and weakens sustainability at a time when radio’s share of India’s advertising market has already fallen sharply from over 3.4 per cent in FY15 to only 1.1 per cent in FY25. Private FM industry revenues in FY25 stood at around Rs 1,819 crore — still below FY20 levels of Rs1,903 crore despite a sharp increase in the number of operational stations across the country.Broadcasters argue this clearly shows that India’s macroeconomic growth has not translated into sustainable monetisation for radio.The irony is striking. India’s audio consumption, in fact, is booming. Podcasts, streaming platforms, connected cars and digital audio are growing rapidly, while global players like Spotify and other international technology companies continue expanding aggressively into India’s audio ecosystem. Yet domestic FM broadcasters remain trapped under outdated regulations framed for a completely different era.It must be pointed out here, that globally, radio markets have evolved far beyond music-led broadcasting. In countries like the US, UK, Australia and the Philippines, radio successfully integrated news, talk, sports, podcasts and digital formats, helping the medium remain commercially relevant even in the streaming era.As a result, radio continues to hold a meaningful share of advertising spends across several global markets. In the United States, radio accounts for roughly 3 per cent of total advertising spends nationally and significantly higher in local advertising markets. Across North America, radio continues to command nearly 3–4 per cent share of the advertising market, while developing economies like Indonesia, Sri Lanka and South Africa have significantly higher share of radio in the advertising market ranging from 7 to 13 per cent; in markets like the Philippines, radio’s share is estimated to remain in double digits due to strong integration with news, community and local programming. India, however, has moved in the opposite direction.Industry executives say it is surprising that one of India’s most accessible and democratic media platforms has received so little policy urgency; radio, which is, after all, PM Modi’s chosen medium for his monthly Mann ki Baat program since October 2014. “Normally politicians care about serving the poor and the masses, but they have surprsingly ignored a medium which reaches them”, said an industry expert.Unlike paid streaming platforms, radio remains free and deeply connected to middle-class and mass-market audiences across Tier-2 and Tier-3 markets. It continues to reach commuters, drivers, shopkeepers, students and millions of Indians daily in local languages and regional cultures.At a time when policymakers frequently speak about supporting domestic industries, local employment and regional content creation, broadcasters argue that lakhs of direct and indirect jobs linked to radio are being put at risk while global technology and streaming companies continue capturing a larger share of India’s audio economy.The result is now visible across the sector — station closures, shrinking investments and the sharp decline of one of India’s few truly local media industries.HT Media’s move is therefore far bigger than a corporate restructuring story. It reflects a larger structural crisis facing India’s radio business — a crisis many in the industry believe has been worsened by years of delayed reforms and regulatory inaction.