Radio spectrum bids rise towards $3m mark

By PETER GRIFFIN

The Government's latest auction of radio spectrum is heating up, with bids for commercial FM radio licences in the Auckland region approaching $3 million.

Alongside the usual spectrum-hungry media companies, a wealthy Indian entrepreneur is bidding for the FM licences in a bid to bring Indian community radio to the masses in Auckland.

Rights to spectrum for AM radio and UHF and VHF transmission are also up for grabs all around the country as long-term licences are offered to replace temporary commercial broadcasting licences that have been issued in recent years.

With a reserve of just $500 on the AM and analogue TV bands in areas ranging from Palmerston to New Plymouth to Invercargill, they are unlikely to contribute much to the Government's coffers.

Bidders for the analogue TV spectrum include Sky TV and Voice TV.

But the sought after FM spectrum bands in Auckland, which operate off the Sky Tower, have attracted large media companies CanWest and The Radio Network, the New Zealand Racing Board - an amalgamation of the Racing Industry Board and the TAB - and the Sahil Family Trust.

Those two lots had reached around $2.9 million and $2.4 million respectively at the close of bidding yesterday.

CanWest said if successful in winning spectrum it would look to bring Wellington easy listening radio station The Breeze to Auckland.

The Sahil Family Trust, is backed by Indian entrepreneur Sahil Shah who used to run Apna FM 101.7, an amateur radio station transmitting Indian content in the Auckland area.

Apna used a low-power FM general user licence and a network of transmitters to cover Greater Auckland. But licencing changes restricting broadcasters to two transmitter within a 25km radius, restricting its ability to operate on a wide scale.

Shah said he was putting up the money to buy a licence himself, but was facing strong competition from rival bidders who have collectively kept the auction price rising.

He would use the spectrum to revive Apna and did not expect it to run on a full commercial model but as a community service.

"The money won't be recouped in the short term because its a very small community," he said.

The current spectrum auction, which is being bid on via the internet, is the first time radio licences have become available in Auckland in five years.

The Government is keeping further FM spectrum in reserve for "flexibility to respond to future needs and also enables innovative new ways of licensing the band to be explored, such as closer channel spacing," Broadcasting Minister Steve Maharey said in September.

The Government is also looking to introduce a spectrum price-setting formula for future distribution of spectrum rights to those seeking to renew spectrum licences and has distributed a draft formula for public scrutiny.

The auction has no closure date but is expected to run for another week or two.

Release of Consultant's Report for Public Comment


Radio spectrum auctions