ENIL and Sun TV spend big bucks in FM phase 3 batch 2 auction

While ENIL picked up the maximum 21 frequencies, Sun TV was the highest spender at Rs 81 cr

Prashant Panday-led Entertainment Network India Limited (ENIL) picked up 21 frequencies in the second batch of phase three FM radio auction. The company that operates brands Radio Mirchi and Mirchi Love across the country added frequencies in cities like Amravati, Bharuch, Mysuru, Asansol and Warangal to its portfolio, spending a total Rs 51.3 crore in the process.

"We are very excited with the results of the 2nd batch of auctions! Our 21 new cities give us depth in the most vibrant radio markets in the country. With this expansion, we'll have 74 frequencies in 64 cities. We look forward to expanding more in the future. However only if the government amends the policy and makes the smaller stations viable," said Panday.

However, ENIL was not the highest spender of the auction as Sun TV Network, which bid for frequencies through South Asia FM Limited and Kal Radio spent Rs 80.58 crore on acquiring 13 frequencies. These include the two costliest cities – Hyderabad (Rs 23.43 crore) and Dehradun (Rs 15.61 crore). Sun TV also picked up frequencies in Leh (Rs 5 lakh), Vellore (Rs 7.02 crore) and Jhansi (Rs 56.9 lakh).

Another strong player in the auction was Gujarat-based media company Sambhaav Media. It picked up a total of 13 frequencies as well, shelling out Rs 17.5 crore in all. Sambhaav Media focussed on Gujarat and North India for the auction, picking up cities like Bharuch, Jamnagar, Junagadh, Kargil, Leh and Poonch.

A total of 66 frequencies from 48 cities were sold during the auction, and the total amount earned by the government in the process was Rs 202 crore. This batch of the auction had 266 frequencies up for grabs across 92 towns and cities. These include 227 fresh frequencies in 69 FM radio dark cities/towns, while the rest are leftover frequencies from batch 1.

The first batch auction, that took place around this time last year, brought in close to Rs 1160 crore to the government. The highest spenders were ENIL and HT Media, both spending close to Rs 340 crore each.

The second batch of Phase 3 FM radio auctions saw fewer applications when compared to batch 1 last year with 14 applicants as compared to 28 in batch 1. National players like DB Corp (My FM), HT Media (Fever FM), Reliance Broadcast Network (Big FM) and Jagran Prakashan (Radio City) were missing from the list of applicants.