Radio frequency auctions: No one’s tuning in, operators say reserve prices too high

Auctions for radio frequencies for the third batch of phase III, which have been delayed for the longest time, could flop unless the government tweaks the terms and conditions. Auctions for the second batch were held in October 2016 and drew a lukewarm response.

Radio operators say the reserve prices are too high whereas the markets on offer are small which means the costs would be disproportionately higher. Red FM COO Nisha Narayanan told FE that while the licence fee for the newer stations might be smaller, the operating costs would be fairly high, making the operations unviable.
Entertainment Network India MD and CEO Prashant Panday pointed out that while bigger players were better placed, the returns on investment for many broadcasters were negligible, a factor that could keep them from expanding.