Ofcom plans to cut the fees for the three national independent radio operators when their analogue licences come up for renewal over the next two years. 

Classic FM, Talksport and Virgin Radio all have a national broadcast licences and could save a collective £5.5m in the proposed cuts. 

"The revised terms represent a reduction in the amounts that will be payable during the extended licence period when compared to payments which are currently made," said a statement from Ofcom.

"This reflects the reduced value of analogue licences in an increasingly digital radio environment."

Ofcom said that the offer represents the cash bids that would have been made for the licences if they had been put out to auction.

The licences will be extended for another four years under the deal and the companies have until 4 August to inform Ofcom whether they wish to accept the new terms.

Classic FM's new licence would run until September 2011, Talksport's until April 2012 and Virgin Radio's until December 2012.

Ofcom said that the growth in digital broadcasting had led to a decline in analogue radio listening.