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Tag: reserve price

  • Prasar Bharati invites applications for vacant MPEG-2 slots in 56 e-auction

    Prasar Bharati invites applications for vacant MPEG-2 slots in 56 e-auction

    Mumbai: Prasar Bharati has invited satellite TV channels to bid for vacant MPEG-2 slots on DD Free Dish DTH Platform through the 56th e-auction. Successful bidders would be distributed on the platform for the allotment period between 1 January and 31 March 2022.

    The bidding process shall be open to all language genre channels starting at a reserve price of Rs 1.94 crore and going up to Rs 5.51 crore.  The e-auction, if required, will be conducted on 24 December and the last date to submit applications is on 23 December by 3 p.m.

    The public broadcaster has categorised TV channels into different buckets in accordance with the genre/language of the channel and defined a starting reserve price for the allotment period.

    Only satellite channels licensed by the ministry for information and broadcasting for downlinking in India would be allotted slots on DD Free Dish. Only license holder company or their authorised distributor partners can apply for allocation of DD Free Dish slots.

    Applicants must also pay a mandatory non-refundable processing fee of Rs 25,000 and participation fee of Rs 1.5 crore. For unsuccessful bidders, the participation fee will be refunded within three weeks after the declaration of the results of e-auction. For successful bidders, participation fee will be adjusted in the final installment of the carriage fee/bid amount.

  • TRAI’s recommendations for reserve price for Phase-III FM radio

    TRAI’s recommendations for reserve price for Phase-III FM radio

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) today recommended that the reserve price for FM Radio channels for Phase III in a new city is to be set equal to 0.8 times the valuation of FM Radio channels in that city.

     

    Thus, TRAI said the reserve price for FM radio channels for each of the 253 new cities has been fixed at 80 per cent of the valuation for each city.

     

    In its recommendations on the reserve price for all the 253 new cities, TRAI also said the reserve price in 11 border cities in the ‘Others’ category in Phase-III should be Rs 5 lakh per channel, as approved by the Cabinet in the Phase-III policy.

     

    After considering all comments received from stakeholders during consultation process and further analysis of the issues, TRAI said in a consultation paper that the valuation of FM radio channels in 253 new cities has been worked out as a simple mean of the three valuation approaches. The approaches are based on population of the city; per capita Gross State Domestic Product (GSDP); listenership of FM Radio; and per capita Gross Revenue earned by the existing FM Radio operators.

     

    The regulator said it had received a letter from the Ministry on 16 December seeking recommendations of the Authority on reserve prices for auction of FM Radio channels in 264 new cities as per the Phase-III policy guidelines.

     

    In all 831 FM Radio channels in these cities are proposed to be auctioned through an ascending e-auction process as provided in Phase-III policy.

     

    Out of the 264 new cities, 253 cities have a population more than one lakh according to the census data 2011 and are classified as B, C, and D category cities. There are 798 FM Radio channels in these 253 cities, which are proposed to be put up for auction.

     

    The remaining 11 cities having a population less than one lakh are in the border areas of Jammu & Kashmir (J&K) and the North East (NE) region. There are 33 FM Radio channels in these 11 cities, which are proposed to be put up for auction.

     

    TRAI issued a consultation paper on “Reserve Price for auction of FM Radio channels in new cities” on 6 February. All the comments received were posted on the TRAI website. Subsequently, an Open House Discussion was conducted by TRAI with all the stakeholders on 9 March at New Delhi.

     

  • FM Radio phase III: TRAI to hold Open House on reserve price for auction

    FM Radio phase III: TRAI to hold Open House on reserve price for auction

    NEW DELHI: An Open House meet will be organised on reserve price for auction of FM Radio channels in new cities in Delhi on 9 March.

     

    This follows a consultation paper by the Telecom Regulatory Authority of India (TRAI) on 6 February. It has already received some comments.

     

    TRAI recommended that the reserve price for FM Radio channels in phase III should be 0.8 times of the valuation of FM Radio channels in that city.

     

    The authority body suggested a reserve price of Rs 5 lakh per city, for FM Radio channels in 11 border cities in phase III.

     

    The regulator also asked if stakeholders agree with the proposed approach and methodology for determination of the valuations of FM Radio channels in 253 new cities in phase III.

     

    The Ministry sent a reference dated 16 December, 2014 to the Authority seeking recommendations of TRAI on reserve prices for 831 FM Radio channels in 264 new cities in the phase III. With this, the private FM Radio operations would be permissible in 350 cities.

     

    Comments and views of the stakeholders on the issues related to estimation of the reserve prices for auction of FM Radio channels in new cities were to be sent latest by 25 February.

     

    TRAI said that for FM channels in 253 new cities, the reserve price can be fixed at 80 per cent of the derived valuations.

     

    For 11 new cities classified in the ‘Others’ category, no reference price is available from phase-II as no city was available in this category in that phase. These cities have population figures of less than one lakh and are located in the border areas of Jammu and Kashmir (J&K) and the North- Eastern (NE) States. The Cabinet approved the RP for each of these 11 cities as Rs 5 lakh.

     

    These cities are of strategic importance. The availability of FM Radio broadcasting service in these far-flung areas can also be used for Emergency Warning Services (EWS) with the specific approval and guidance of the local district administration. When the reserve price of Rs 5 lakh per city set for these cities in phase III, the policy is compared with the proposed RPs for ‘D’ category cities of NE and J&K, it appears to be reasonable to encourage the participation of a large number of prospective bidders. The inherent design of an ascending e-auction process would anyway ensure that the true market value of the FM Radio channels in each city is discovered during the process of auction. So the RP for each of these 11 new cities may be Rs 5 lakh.

  • TRAI seeks views on methodology for calculating reserve price of FM phase III

    TRAI seeks views on methodology for calculating reserve price of FM phase III

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has recommended that the reserve price for FM radio channels in phase III should be 0.8 times of the valuation of FM radio channels in that city.

     

    In a consultation paper on the subject of reserve price at the request of the Information and Broadcasting Ministry, TRAI suggests reserve price of Rs 5 lakh per city, for FM radio channels in 11 border cities in phase-III.

     

    The regulator has also asked if stakeholders agree with the proposed   approach/methodology for determination of the valuations of FM Radio channels in 253 new cities in phase-III.

     

    The Ministry sent a reference dated 16 December 2014 to the Authority seeking recommendations  of TRAI on reserve prices for 831 FM radio channels in 264 new  cities in the phase-III. With this, the private FM radio operations would be permissible in 350 cities.

     

    Comments/views of the stakeholders on the issues related to estimation of the reserve prices for auction of FM radio channels in new cities should be sent latest by 25 February.

     

    TRAI has said that for FM channels in 253 new cities, the Reserve Price can be fixed at 80 per cent of the derived valuations.

     

    For 11 new cities classified in the ‘Others’ category, no reference price is available from phase-II as no city was available in this category in that phase. These cities have population figures of less than one lakh and are located in the border areas of Jammu and Kashmir (J&K) and the North- Eastern (NE) States. The Cabinet approved the RP for each of these 11 cities as Rs 5 lakh.

     

    These cities are of strategic importance. The availability of FM radio broadcasting service in these far-flung areas can also be used for Emergency Warning Services (EWS) with the specific approval and guidance of the local district administration. When the reserve price of Rs 5 lakh per city set for these cities in phase-III, the policy is compared with the proposed RPs for ‘D’ category cities of NE and J&K, it appears to be reasonable to encourage the participation of a large number of prospective bidders. The inherent design of an ascending e-auction process would anyway ensure that the true market value of the FM radio channels in each city is discovered during the process of auction. So the RP for each of these 11 new cities may be Rs 5 lakh.

     

    The Consultation Paper noted that the non-refundable one time entry fee (NOTEF) for FM radio channels in all the cities coming up during phase III is to be discovered through an ascending e-auction. The phase-III policy guidelines provides the mechanism for migration of existing FM radio operators from phase-II to phase-III regime.

     

    According to the decision of the Empowered Group of Ministers (EGoM), the Ministry had in April 2013 sought recommendations of TRAI on the migration fee to be charged from existing phase II operators on their migration to the phase-III regime of FM radio. Broadcasting authority sent its recommendations on ‘Migration of FM Radio Broadcasters from phase-II to phase-III’ on 20 February 2014.

     

    The methodology for determination of the reserve prices for auction of FM Radio channels   was already finalised by the Government. In its recommendations of 20  February 2014, the Authority recommended that the methodology for determining the reserve prices for fresh (new) cities (where no private FM radio channels are operational) in phase-III should be reconsidered as the current methodology might jeopardize the auction.

     

    Thereafter, MIB decided to seek fresh recommendations of the Authority on reserve prices for new cities in phase-III and also make the 2011 census data applicable for identification and categorisation of the new cities. Based on the 2011 census data, MIB has identified 37 additional cities where 112 private FM radio channels are proposed to be put up for auction. This is in addition to the already identified 227 new cities earlier earmarked for FM radio expansion as per the 2001 census data. Further, based on the 2011 census data, MIB has also upgraded the category of 11 new cities that were already mentioned in the phase-III policy guidelines dated 25 July 2011. Thus, there are now, in 264 (227+37) new cities, a total of 831 FM radio channels that are to be put up for auction.

  • Spectrum auction reserve prices provide for 50 per cent relaxation for north-east

    Spectrum auction reserve prices provide for 50 per cent relaxation for north-east

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) on 31 December recommended that in the upcoming auction of 2100 MHz band spectrum, an auction-specific cap should be placed that no bidder would be permitted to bid for more than 2 blocks in an LSA if 3 – 4 blocks are available in that LSA.  
    It also reiterated its recommendations that spectrum in the 2100 MHz band should be put to auction along with the 800/900/2100 MHz band. 
    Furthermore, the 15 MHz of spectrum (which are equivalent to 3 blocks of 2×5 MHz when paired corresponding downlink spectrum) in the 2100 MHz spectrum being vacated by Defence Ministry, in lieu of spectrum in the 1900 MHz spectrum, should be auctioned in view of the in-principle agreement reached with Ministry, even if it is not available immediately. This is because actual assignments do not have to be made immediately. The actual date of assignment may be given in the Notice Application (NIA). 
    The Authority recommended that the reserve price for North East LSA may be fixed at a discount of 50 per cent. 
    The recommendations follow a letter from the Department of Telecommunications on 16 October, saying the government was planning auction of right to use spectrum in the 2100 MHz, 2300 MHz and 2500 MHz bands, preferably along with the auction of spectrum in the 800 MHz, 900 MHz and 1800 MHz bands and seeking recommendations on some issues. 
    The Authority also recommended that the Department of Telecommunications should take all measures to ensure that the 2100 MHz spectrum which was earlier assigned to STEL in three service areas viz. Bihar, Orissa and Himachal Pradesh is also put to auction. 
    The Authority recommended that the roll-out obligations that were mandated in the 2010 auctions for spectrum in the 2100 MHz band should be applicable for the upcoming auction of 2100 MHz band. 
    However, a period of three years (instead of five years) should be prescribed to meet these obligations. 
    A Telecom Service Provider, which already has a block of 2×5 MHz in the 2100 MHz band in an a Local Service Area and acquires additional block(s) in the LSA through the upcoming auction, should not be mandated to comply with the roll-out obligations again. It would continue to be bound to the same roll-out obligations that were prescribed when it acquired the first block of spectrum in 2010. 
    The TSTP (Test Schedule Test Procedure) which prescribes the process and method for measurements and tests to be carried out to ensure the required roll-out of the 3G network should be finalised at the earliest but, in any case, no later than the conduct of the February 2015 auction. 
    The list of rural Short Distance Charging Areas along with names of the towns in these DCAs should be made part of the NIA. 
    The Authority recommended that if any TSP is assigned two blocks of 2×5 MHz in the 2100 MHz band in the upcoming auction, it should be assigned contiguous carriers only; and TSPs should be permitted to realign their spectrum holding amongst themselves with mutual agreement. 
    It recommended that the issue of interference, reported in the 2100 MHz band in some LSAs, needs to be resolved before putting fresh spectrum blocks to auction in these LSAs. Further, it is imperative to ensure that spectrum blocks being put to auction are interference-free. 
    The regulator recommended that the DoT should carry out the Electro-magnetic Field impact study and decide within a period of six months whether the power radiation limits from base stations can be enhanced beyond the present limits of 20 Watts for HSPA/HSPA+ or LTE technologies.  
    The Authority recommended that the reserve price for 2100 MHz spectrum in each LSA should be as given in table below: 

  • DD Freedish readies for 18th online e-auction with reserve price of Rs 3.7 crore

    DD Freedish readies for 18th online e-auction with reserve price of Rs 3.7 crore

    NEW DELHI: Aiming at a target of 112 television channels in the next few months, Doordarshan has set a reserve price of Rs 3.7 crore per slot for the 18th online e-auction to be conducted on 28 November.

     However, it is learnt that the bid amount went up to Rs 4.2 crore in the last e-auction held on 12 November. This came shortly after the 16th e-auction on 28 October.

     

    Prasar Bharati CEO Jawhar Sircar had said recently that the future of Doordarshan was in Freedish and digitisation. He had added that this may mean that some channels would have to be attracted to Freedish by means other than e-auction.
     
    DD sources also said that while Freedish may be encrypted to keep a tab on the number of subscribers, it would remain free-to-air.

     The e-auction will be conducted by Synise Technologies, Pune on behalf of Prasar Bharati.   

     The reserve price in the 15th e-auction was Rs 3 crore and was raised to Rs 3.7 crore in the 16th auction.

     Prior to the sixteenth auction, the total number of channels on Freedish was 58.

     Meanwhile, a Doordarshan official declined to give the number of successful bids on 28 October as engineers of the pubcaster had to test these channels before verifying any numbers.

     A Prasar Bharati official told indiantelevision.com that DD had decided not to disclose the number of slots to be e-auctioned to prevent bidders forming consortia to bid or resort to other malpractices.

     The eligibility terms and conditions including other relevant details for this e-auction are displayed on DD website: www.ddindia.gov.in.

     However, the participation amount (EMD) in the e-auction is Rs.1.5 crore which has been deposited in advance on or before 11 November evening along with processing fee of Rs.10,000 (Non-refundable) in favour of PB (BCI) Doordarshan Commercial Service, New Delhi.

     Applicants have also been asked mandatorily to deposit a demand draft of Rs 5,500 registration amount favouring M/s. Synise Technologies Ltd., payable at Pune at the time of submission of the application. The time for every slot e-auction will be of fifteen minutes duration.

     The applicants must provide details of the uplink/downlink permission documents received from the concerned Ministries with the Applications to ensure they are not rejected.

     The demand drafts of unsuccessful bidders will be returned immediately or within a week after the e-auction process is completed.  

     

  • TRAI Consultation Paper on 800 MHz Spectrum wants stakeholders’ opinion on pricing

    TRAI Consultation Paper on 800 MHz Spectrum wants stakeholders’ opinion on pricing

    NEW DELHI: The Telecom Regulatory Authority (TRAI) of India has asked stakeholders for their views on whether the value of 800 MHz spectrum should be derived on the basis of the value of 1800 MHz spectrum using technical efficiency factors.

     

    It has also sought to know the block size in the 800 MHz band and what should be the quantum of spectrum in the 800 MHz band that should be put up for auction.

    It has also asked if there is any case for application of a lower efficiency factor (1.3) over the valuation of 1800 MHz spectrum, for determining the valuation of 800 MHz, as was done in the previous auction and give detailed reasons for the same.

     

    The stakeholders have been asked if the value to be paid for 800 MHz spectrum should be based upon the potential growth in data services.

     

    The questions have been asked in a Consultation Paper by TRAI on the Reserve Price of the Spectrum for 800 MHz in response to a query in this regard by the Department of Telecommunications on 12 December.

     

    Written Comments on the Consultation Paper are invited from the stakeholders by 15 January and counter-comments by 22 January. As the issue has to be decided urgently, no extension will be granted. Comments and counter-comments will be posted on TRAI’s website www.trai.gov.in.

     

    Open House Discussion (OHD) on this consultation paper will be held on 27 January, 2014 in New Delhi. This may be treated as an advance notice for the OHD.

     

    Other questions include whether the value of spectrum in the 800 MHz band should be assessed on the basis of producer surplus on account of additional spectrum and reasons and calculations for the views given.

     

    TRAI also wants to know if the value of spectrum in the LSAs in India for 800 MHz should be determined by utilising the data on international prices or what other variables can be suggested for arriving at robust value estimates using the multiple regression approach.

     

    Apart from the approaches discussed in the paper, TRAI wants to know if there are any alternate approaches for valuation of spectrum in 800 MHz that you would suggest.

     

    It has also sought opinion on the ratio adopted between the reserve price for the auction and the valuation of the spectrum.