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Phase III auction: Single channel in Bhubaneshwar undergoes most competitive bidding increment-wise

At the end of Day 21, 17 cities have got provisional winning price for their channels more than 100 per cent above their respective reserve prices

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Phase III auction: Single channel in Bhubaneshwar undergoes most competitive bidding increment-wise

At the end of Day 21, 17 cities have got provisional winning price for their channels more than 100 per cent above their respective reserve prices

BestMediaInfo Bureau | Delhi | August 25, 2015

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E-auction of the first batch of private FM radio Phase III channels re-commenced yesterday at 9.30 am. During the day, four rounds of bidding took place. Till now, 84 rounds of bidding are over. Bidding re-commences today at 9.30 am.

At the close of the 21st day of bidding, 94 channels in 56 cities became provisional winning channels with cumulative provisional winning price of about Rs 1,134 crore, against their aggregate reserve price of about Rs 459 crore. Thus, the summation of provisional winning prices surpassed the cumulative reserve price of the corresponding 94 channels by Rs 675.22 crore or 147.1 per cent. Overall, cumulative provisional winning price exceeded the total reserve price of the first batch, that is, Rs 550.18 crore, by Rs 583.90 crore or 106.1 per cent.

The auction for the first batch comprising 135 FM channels in 69 existing cities of Phase II began on July 27, 2015.

So far, 17 cities have got provisional winning price for their channels more than 100 per cent above their respective reserve prices. Ahmedabad, Amritsar, Aurangabad, Bangalore, Bhubaneshwar, Chennai, Delhi, Guwahati, Jaipur, Jodhpur, Kolhapur, Mumbai, Nasik, Patna, Pune, Rourkela and Varanasi got provisional winning bidders at prices more than double the respective reserve prices.

With the provisional winning price more than nine times the reserve price, single channel in Bhubaneshwar has undergone the most competitive bidding increment-wise. Price Increment Algorithm for the e-auction is based on the increment logic used by the Department of Telecommunications (DoT) in its auctions. As per this logic, there should be no increment for negative excess demand, some increment for zero excess demand and a fixed increment above a certain excess demand. Some increment for zero excess demand means that when demand is equal to supply, seller has right to increase price to see whether purchasers are there at increased price.

The Auction Activity Requirement (AAR) is 100 per cent. It was increased from 90 per cent after 59th Round on August 14, 2015. The channel allocation stage will continue till the bids are received for any of the 135 channels.

After the channel allocation stage is over, the frequency allocation stage will commence on the next working day. During this stage, the winning bidders will be allowed to select FM frequency for the winning channel from the frequencies already identified in the respective city and as mentioned in the Notice Inviting Applications (NIA) dated March 2, 2015. Frequency selection preference would be based upon the rank of the bidders, that is, Rank 1 bidder would have the first preference to choose from the frequencies already identified. It may be noted that all the identified frequencies were made available for selection and included in the NIA after the same was demanded by the industry during first pre-bid conference dated January 28, 2015.

Summary of 21 days of bidding:

Sl No Date of Bidding Status at the end of Round No No of Provisionally Won Channels No of Cities Cumulative Reserve Price of Provisionally Won Channels (In Crore Rs) Cumulative Provisional Winning Price (In Crore Rs)
1 27.07.2015 4 78 54 357 395
2 28.07.2015 8 79 55 377 479
3 29.07.2015 12 80 55 377 549
4 30.07.2015 16 80 55 391 643
5 31.07.2015 20 80 55 391 714
6 03.08.2015 24 82 56 395 779
7 04.08.2015 28 83 56 395 827
8 05.08.2015 32 83 56 395 869
9 06.08.2015 36 85 56 407 900
10 07.08.2015 40 86 56 425 946
11 10.08.2015 44 87 56 425 969
12 11.08.2015 48 86 56 425 987
13 12.08.2015 52 87 56 425 1005
14 13.08.2015 56 88 56 426 1022
15 14.08.2015 60 91 56 449 1079
16 17.08.2015 64 92 56 451 1090
17 18.08.2015 68 93 56 458 1116
18 19.08.2015 72 94 56 459 1123
19 20.08.2015 76 94 56 459 1128
20 21.08.2015 80 94 56 459 1130.51
21 24.08.2015 84 94 56 459 1134

List of cities and clock round price at end of Day 21 of the e-auction:

Daily_Auction_Public_Report_at_the_End_of_Day-25 Click on the image to enlarge.

Info@bestmediainfo.com

Info@BestMediaInfo.com

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