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Radio frequency auction 10 results announced

27th May 2008

Radio frequency auction 10 results announced

Communications and Information Technology Minister David Cunliffe today announced the provisional results of Radio Frequency Auction 10.

Sixteen new local commercial FM licences were acquired by bidders from Auckland, Christchurch and elsewhere.

“Local commercial FM radio is a new licence category requiring the owner and operator to reside and have its studio within the coverage area, and to broadcast content relevant to local audiences,” Mr Cunliffe said.

“Listeners in the areas where local commercial licences have been sold will now be able to access a wider range of local broadcasting content,

“It is up to these new community-based broadcasters to meet the needs and interests of their audiences by developing a locally focused and locally generated format that is attractive to their listeners.”

“This allocation supports the government’s current Broadcasting Programme of Action initiative ‘Strengthening local and regional broadcasting’. 16 of the 31 local commercial FM licences have been sold at auction as part of moves to strength radio in New Zealand,” said Mr Cunliffe.

“To meet the interests of non-profit broadcasters, a further 14 local non-commercial FM licences are being assigned by the Ministry for Culture and Heritage.”

Licence-holders will have two years to establish a broadcasting service and will be required to report annually on their operations. The local commercial FM licences expire in 2018. Arrangements beyond 2018 will be determined well before that date. Subject to final settlement the auction has raised approximately $3.3 million dollars.


Further information:

Local commercial FM licences
http://www.rsm.govt.nz/cms/policy-and-planning/current-projects/broadcasting/policy-and-planning/spectrum-auctions/radio-spectrum-auction-no-10-local-fm-licences
Local non-commercial FM licences
http://www.mch.govt.nz/publications/new-frequencies/index.html


Background
Auction 10 was designed to:

- address the opportunity to introduce an additional tier of commercial licences with a local focus as identified in the 2005 Radio Spectrum Policy Review; and

- provide opportunities for new and innovative FM radio broadcasters to enter the market at a local and regional level.
Offered at the auction on Thursday 22 May were 31 local commercial FM licences, 35 unrestricted commercial FM licences, one commercial AM licence and five commercial UHF-TV licences.

Thirty-five unrestricted commercial FM licences were acquired by The Radio Network (21 licences), RadioWorks (4), Radio Rhema (3), the New Zealand Racing Board (2) and five other bidders.
The commercial AM licence was purchased by a UK buyer and the five UHF-TV licences by Sky Network Television Ltd (3 licences), Action Productions Ltd and Fraser Smith Holdings.

About $2 million dollars of the $3.3 million total was paid for six licences in Auckland, Rotorua and Christchurch .

ENDS

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