The regulator has also said that FM channels should be allowed to offer news. However, FM broadcasters should only be permitted to take content from All India Radio, Doordarshan, authorised television news channels, United News of India, Press Trust of India, and any other authorised news agency, said Trai in its recommendations on the 3rd Phase of Private FM Radio Broadcasting submitted to the Information and Broadcasting Ministry.

On FDI issue, the regulator made it clear that no change in holding pattern of the shares shall be permitted till the start of the FM Radio broadcasting under any circumstances. However, the dilution of the share holding by majority shareholders would be permitted once the services are launched. This is subject to the condition that their share holding does not fall below 51 per cent, with the prior permission of the Information and Broadcasting Ministry. Any change in ownership or further dilution shall be permitted after a period of three years from the date of launch of services.

Trai has also recommended that an existing operator can be permitted to bid for another channel in the same district if his bid is the highest. However, this should be subject to the condition that the maximum number of channels to a permission holder in the district will not be more than 50 per cent of total channels in the district.

Furthermore, at least three channels excluding AIR in any district will be given to three different entities. Thus, the existing ceiling limit of 15 per cent of total FM Radio channels in the country permitted to a permission holder is no longer valid.

Trai also recommended that the geographical basis for private FM radio bidding in the future might be changed from city to district. The channels available in a district shall be auctioned to the eligible bidders and shall be allocated to successful bidders in descending order of the bid price.

Existing operators may be given the option to enlarge the area of operation for the same channel to provide coverage to full district after fulfilling certain conditions.

Bidding for the remaining 97 channels of phase-II scheduled on city as operational area may be rescheduled considering district as operational area to avoid complication of subsequent migration from city to district level.