 "HT Media, ENIL shell out big bucks in radio phase 3 auction")
According to data released by the information and broadcasting ministry, HT Media and Entertainment Network India (ENIL), the company that runs FM station Radio Mirchi, spent the most during the auction of the first batch of FM phase three frequencies.
Both spent close to Rs 340 crore, picking frequencies in metros and mini metros. HT Media picked up the most expensive frequency at Rs 169.16 crore for the lone one available in Delhi. And Rs 122.81 crore for one of the two frequencies available in Mumbai, the other successful bid coming from Digital Radio (Mumbai) Broadcasting (also for the same amount). ENIL forked out Rs 109.25 crore for the sole frequency in Bengaluru. While HT Media bid for a total of 10 frequencies, ENIL bought 18, including two in Hyderabad (Rs 18 crore each).
The Reliance Broadcast Network added 14 new stations to its existing 45 station network, focusing on key cities such as Pune, Nagpur, Lucknow, Patna, Varanasi and Kolhapur, among others. It spent Rs 117 crore on these acquisitions.
The four frequencies available in three metros (two in Mumbai and one each in Delhi and Bengaluru) accounted for Rs 522 crore of the total Rs 1,157-crore bid money. Of the 135 frequencies across 69 citites up for grabs, 38 remained unsold.
Both spent close to Rs 340 crore, picking frequencies in metros and mini metros. HT Media picked up the most expensive frequency at Rs 169.16 crore for the lone one available in Delhi. And Rs 122.81 crore for one of the two frequencies available in Mumbai, the other successful bid coming from Digital Radio (Mumbai) Broadcasting (also for the same amount). ENIL forked out Rs 109.25 crore for the sole frequency in Bengaluru. While HT Media bid for a total of 10 frequencies, ENIL bought 18, including two in Hyderabad (Rs 18 crore each).
The Reliance Broadcast Network added 14 new stations to its existing 45 station network, focusing on key cities such as Pune, Nagpur, Lucknow, Patna, Varanasi and Kolhapur, among others. It spent Rs 117 crore on these acquisitions.
The four frequencies available in three metros (two in Mumbai and one each in Delhi and Bengaluru) accounted for Rs 522 crore of the total Rs 1,157-crore bid money. Of the 135 frequencies across 69 citites up for grabs, 38 remained unsold.
Of the total 135 frequencies across 69 citites up for grabs, almost 38 remained unsold. The bidding was clearly skewed towards the bigger cities and metros, with Pune getting a bid price of Rs 42.03 crore and Jaipur getting Rs 28.34 crore. Frequencies in Hyderabad, which got three successful bids (one from HT Media and two from ENIL) were sold at base price, as was the case in many other cities.
Prashant Panday, CEO, ENIL says, “While the auction process was a step towards the better, there were some clear flaws in the system. For one, there was a scarcity created for the metro frequencies, which meant players had to stretch themselves for those. Also, the reserve price for some of the cities was too high which led to so 38 frequencies across 13 cities remain un-auctioned. Lastly, a national cap on the bidding also hurt the players. I hope this feedback is incorporated in the future batches.”
The participating companies could bid for not more than 15% of the sum of their existing channels and the 135 up for bidding. So if a company already had 15 channels then it could bid for 15% of a total of 150 channels which is 23 channels. This led to ferocious bidding for some channels, where there was more saleability.
Music Broadcast Pvt Ltd, which runs Radio City nationally and was recently acquired by Jagaran Prakashan successfully bid for 11 frequencies, shelling out Rs 62.5 crore. Apurva Purohit, CEO – Radio City 91.1 FM, said, “We are pleased to share that we have won 11 frequencies and in the markets that we were keen on. This increases our footprint across important cities in each state as we become a 39 station network. Together Radio City & Radio Mantra will be dominant players in important state clusters and continue our successful phase 2 strategy of concentrating on advertiser relevant markets.”