The Telecom Regulatory Authority of India on Friday recommended that government should allow news on FM radio stations.
It also said that an FM radio broadcaster can get more than one channel and the area of the license should be increased from a city to an entire district.
TRAI also mooted changes in the foreign direct investment policy for FM broadcasters. Those opting for news should be allowed 26 per cent FDI from the present 20 per cent and others up to 49 per cent, it suggested.
For allowing more than one channel to a company, TRAI stipulated that at least three channels, including the All India Radio, in any district should be allocated to different companies. After that, a company already having a channel can bid for an additional channel.
This would mean that the existing ceiling that a company cannot hold more than 15 per cent of total FM radio stations would no longer be valid, TRAI said.
TRAI has allowed FM stations to take news content from AIR, Doordarshan, authorised television channels, authorized news agencies only. "News from any other source is not allowed," TRAI said.
The regulator also allowed outsourcing of content development in a bid to give diversity to FM radio programmes.