Top Story


Home >> Media - Radio >> Article

Phase III: At Rs 144 crore, has Delhi stolen everyone’s thunder?

Font Size   16
Phase III: At Rs 144 crore, has Delhi stolen everyone’s thunder?

As of Friday, with 40 rounds of bidding over a course of 10 days, Delhi crossed Rs 144 crore, much higher than any other city. The closest is Bangalore, which stands at Rs 104 crore. Though it was anticipated that Delhi and Mumbai would be highly sought after the amount of money that is being bid for Delhi has exceeded all expectations. Mumbai, in fact, which was supposed to be the second favourite has now fallen out of favour over the last few rounds and now the provisional winning price for it is around Rs 93 crore.

To give an example, before the auctions started, Delhi was expected to get about Rs 70 crore, according to the highest estimates. The Day 10 provisional winning price is more than double of this amount.

This disproportionate interest for Delhi seems to have negatively impacted some other cities. For example, the north east has largely been neglected. Even in the south, cities like Hyderabad and Chennai, which are supposed to be mature markets have not really seen a lot of interest.

As of Day 10, the provisional winning price for the former stands at Rs 18 crore, which has remained constant over the last few days. Similarly, Chennai, which now has a provisional winning price of Rs 42 crore, has not seen as much as activity as was expected before the auctions.

Cities like Ahmedabad, after a lot of interest in the early days of the auctions failed to see a single new bid in the last two rounds of auctions. As of the end of Day 2, the provisional winning price for Ahmedabad is just under Rs 43 crore.

Under Phase III rules, a FM operator can hold more than one frequency license in a city; something that was not the case under Phase II rules. This has obviously led to the larger stations, which can afford to pour in the money to target the metros like Delhi, Mumbai and Bangalore, which had frequencies up for grabs. These cities are among the most lucrative markets for FM radio and Delhi is generally held to be the most profitable among them.

No wonder then that it appears that the major players are all gunning for the single frequency in Delhi even if it is at the expense of other Tier II cites. Take the case of cities like Aurangabad, Kolhapur, Jammu, Lucknow, etc. still have excess frequencies, which have yet to see even a single bid and these cities might actually be considered as upcoming cities for radio.

As of Day 10, there are hardly any new active bids and it now appears that the Phase III auction will now be winding down soon. According to the MIB’s auction rules, there needs to be at least 80 per cent activity from the qualified bidders in a given round for the auctions to continue.

Baba Ramdev brought his sharp wits for an interview with e4m where he promised to disrupt more markets and spoke about he the way he created a brand through consistent and selfless work

GroupM is in talks with several digital clients currently with its other agencies to shift them to Essence, which is looking at a major expansion plan in 2018

Thomas, Chief Marketing Officer, Diageo India, gives us a peek into the marketing strategy for McDowell’s No 1 Soda, its creation of ‘No 1 Yaari Jam,’ their own set of 4Ps and importance of content

NewsCode, a hyper local online news platform was launched last night with a network of over 350 local reporters in Karnataka and Jharkhand. Apurv Swarup, the co-founder talked to Exchange4Media about his vision

Voot, which is producing almost 4X content on an overall basis on the reality drama, is gunning for big numbers both on viewership and advertising revenue

YouTube today released its annual year-end edition of the YouTube Ads Leaderboard 2017 capturing the most celebrated ads that received maximum views, shares, and love from audiences across India

Real world study of Appier's network shows significant benefits of AI over traditional rule-based systems