India’s Information and Broadcasting Ministry has rejected a recommendation to reduce the reserve price for the auction of Phase III of FM radio licensing.

The Telecom Regulatory Authority of India (TRAI) had recommended reconsidering the price which many radio operators consider prohibitive.

Auctions for the third phase of FM licensing, which will see 839 channels rolling out across 294 cities, are expected to start in October.

The reserve price for Phase III is calculated on the basis of the highest bid of Phase II, over which many radio operators have raised concerns.

Ministry sources said that the Phase III price was fixed by the Union Cabinet and could not be overturned by the ministry.

TRAI had also recommended a 15-year licensing period for operators migrating from Phase II to Phase III, as compared to a 10-year license for Phase II, which the ministry has accepted.