FM Radio Phase III Auction Update: Mirchi and Radio City Opt Out - Airmedia Broadcast India

FM Radio Phase III Auction Update: Mirchi and Radio City Opt Out - Airmedia Broadcast India 

The third phase of FM Phase-III radio auctions, scheduled to begin in January 2025, has seen 20 radio players submitting their applications. However, major players such as Radio Mirchi and Radio City have opted not to participate in this round.

The third batch of auctions, covering 730 channels across 234 new cities, has garnered a lukewarm response, with many radio players adopting a conservative bidding strategy due to high reserve prices and the long nine-year gap since the last batch. Industry insiders predict that the bids will be significantly lower, with players likely spending only 10% of what they invested in the previous auction.

Key concerns for the radio players include the high cost of operations in smaller cities, limited business opportunities, and a shift in consumer habits, with many opting for online content through smartphones over traditional FM. Industry veterans suggest that major players are focusing on renewing licenses for existing markets rather than expanding into new ones.

The reserve price for the auction is based on the TRAI's 2022 recommendations, with bids requiring an earnest money deposit depending on the number of cities a player wants to bid for. The auction rules specify that participants must submit a bid for at least one city in the first round, or risk forfeiting their deposit.

The list of participants in the third phase includes regional players and new entrants, with familiar names like DB Corp, HT Media, and Sun TV Network among the applicants.

For more updates on the FM radio auction and the evolving industry landscape, stay tuned.

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