It has also demanded sufficient funding from the charge to be made available for RTÉ Radio 1 to allow it operate as a commercial-free full public service broadcaster.
The group also wants the regulator, the Broadcasting Authority, to be sufficiently funded from the charge.
“Every household has at least one radio and nearly every person has the ability to listen to radio on their mobile phone, laptop, computer, iPad, and so on,” said IBI chairman Scott Williams.
“Given the number of radio devices in each home, we believe that the public broadcasting charge (PBC) set out in the Programme for Government and which will be levied on all households, must be used to strengthen and develop all forms of broadcasting in Ireland”.
“The TV licence fee has provided an unfair competitive advantage to RTÉ. With more than 1,500 people employed in the sector independent broadcasters make a significant economic, social and cultural contribution to the Irish economy.
“The replacement of the licence fee with a new PBC provides a unique opportunity to the Minister for Communications to create a more competitive broadcasting landscape