Radio owners pay $7m to beef up digital stations
Commercial radio operators, led by 2Day FM owner Austereo, have paid more than $7m to buy excess spectrum allowing them to launch more digital stations and improve their existing digital offerings.
Following an auction in Sydney, Austereo, Supernetwork and Australian Radio Network (ARN) were the successful bidders, allowing them to launch up to 12 new audio and/or data services.
In Melbourne Austereo, Sport 927 and ARN won the bid; in Brisbane it was Austereo, DMG and ARN; in Adelaide the excess spectrum was taken by Austereo; while in Perth it went to Grant/Capital Broadcasters and Austereo.
The extra spectrum will mean radio companies will be able to broaden their digital radio offerings by either launching new digital radio stations or upgrading their existing stations by adding more scrolling text and more video content on the screens of digital radio sets.
With Austereo and ARN owning 2 stations each market already (and therefore 2 x 128kbps of digital capacity), how are the auction rules complied with:
From:
http://bayeastauctions.com.au/.....uction=354
Section 3.6 of the Auction Rules states:
(a) Pursuant to section 118NV of the Radiocommunications Act, Incumbent Digital
Commercial Radio Broadcasters are not entitled to access to more than 2 x
128Kbps of Multiplex Capacity in the Designated BSA Radio Area (Capacity Cap).
(b) The total amount of Excess Capacity Lots acquired by an Incumbent Digital
Commercial Radio Broadcaster in the Designated BSA Radio Area during the
Auction must not, when added to the total amount of Standard Access
Entitlements held by that Incumbent Digital Commercial Radio Broadcaster in the
Designated BSA Radio Area, exceed the Capacity Cap.
Here is the actual law:
http://www.austlii.edu.au/au/l.....118nv.html
Have I misinterpreted this or have some networks bid for more than what they’re entitled to?
When I looked at the documents last Thursday, it seemed clear to me that the only commercial stations/owners that would be bidding would be those that their licensee did not own a second station:
Brisbane: 4TAB, Nova1069
Sydney: 2SM, 2UE, 2KY
Melbourne: Sport 927
Adelaide: none – the six commercials have 3 owners
Perth: 6IX, Nova937
Interesting to note Fairfax, owner of 2UE didn’t secure more spectrum of its own. Fairfax already have a full allocation in Brisbane, Melbourne and Perth, half of that in Sydney.