After the poor response in the first phase of licensing for private FM radios, the Telecom Regulatory Authority of India expects at least 1,000 radio stations in the next 2-3 years following its recommendation of a low entry fee and migration to a revenue sharing regime for the second phase.

TRAI Chairman Pradip Baijal said that there was enormous scope for growth in the private FM radio segment.

"The one-time low entry fee and 4 per cent revenue sharing arrangement are sure to pull more players and we expect about 1,000 stations in the next 2-3 years," he said.

The proposed structure would also help new operators compete with All-India Radio, which is not required to pay any entry fee or share revenue with anyone, he said.

Baijal said that if given a go-ahead by the government, the recommendations would spur growth as well as competition.

"Also, it would lead to greater investment and employment in the sector," he said.

On the migration of existing players to the new regime, he said, "We have permitted that, but it should be done in a transparent manner."