E-Auction of the first batch of private FM radio phase III
channels comprising 135 channels in 69 existing cities of Phase II, which had
commenced on 27th July 2015, got over today on 9th September 2015 with the
completion of Frequency Allocation Stage.
E-auction of the first batch consisted of
two stages- Channel allocation stage and Frequency allocation stage. After the
Channel allocation stage got completed on 8th September, 2015 after 125 Rounds
of Bidding spread over 32 days, the Frequency allocation stage commenced on 9th
September 2015 at 10.00 AM. In this Stage, total three rounds of half an hour
duration each took place. There was no time gap between two consecutive rounds.
During the Frequency Allocation Stage, the provisional winning
bidders were allowed to select FM Frequency for the winning channel(s) from the
frequencies already identified in the respective city & as mentioned in the
Notice Inviting Applications (NIA) dated 2nd March, 2015 read with
its subsequent amendment(s). Frequency selection preference was based upon the
rank of the bidders i.e. Rank 1 bidder had the first preference to choose from
the frequencies already identified.
At the closure of the e-Auction, 97 channels in 56 cities became
provisional winning channels with cumulative provisional winning price of about
Rs 1156.9 Crore against their aggregate reserve price of about Rs 459.8 Crore.
Thereby the summation of provisional winning prices surpassed the cumulative
reserve price of the corresponding 97 channels by Rs 697.05 Crore or 151.58%.
Overall, cumulative provisional winning price exceeded the total reserve price
of the first batch i.e. Rs 550.18 Crore by Rs 606.72 Crore or 110.27%.
The list of successful bidders shall be notified by the
Government on the Ministry’s website www.mib.nic.in.
The current auction is indicative of the future growth of
the private FM radio sector. This also shows that a transparent and fair
bidding system can help realize the real value of the natural resources. This
is the first time that private FM channels have been offered through Simultaneous
Multiple Round Ascending (SMRA) e-auction. This auction design has enabled
bidders to take informed decisions while placing bids and consider alternatives
dynamically.
Another noteworthy feature is that out of 15 channels in
J&K and NE states, 12 channels have got provisional winners with the city
of Guwahati getting provisional winning price more than10 times its reserve
price.
It may be noted that many steps were taken to enhance transparency
as well as to remove barriers to participation which include:
1.
To oversee the entire process of FM
Phase-III roll out including the e-auctions, the Government had appointed an
Independent External Monitor in consultation with the Central Vigilance
Commission.
2.
A pre-bid conference with all
stakeholders was held on 28.01.2015 post issuance of the Information Memorandum
of the first batch dated 21.01.2015. Government received 85 queries and
suggestion in this pre-bid and all queries were duly replied on 17.2.2015.
Government also accepted some of industry’s suggestions prominent among them
being the display of aggregate and excess demand, auction closure rule as per
DOT’s auctions, relaxation in cut-off date for determining the net worth of an
applicant Company, identification all possible frequencies for 135 channels.
3.
After the issuance of the Notice
Inviting Applications (NIA) for bidding for the first batch on March 2, 2015,
another pre bid conference with prospective bidders was held on March 10, 2015.
Government received 76 queries in this conference and again all queries were
duly replied, followed by an amendment to NIA.
4.
To create awareness for the bidders,
Government conducted a training session on 22, April, 2015.
5.
The Government conducted second training
session with all the eligible bidders on 17.07.2015.
6.
Three day mock auction was arranged
for bidders from 22-24 July 2015.
7.
During the bidding days, daily
auction report was published on the Ministry’s website.
CP/GV