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National licenses auctioned, same names win
FM continues

The Swedish commercial radio concession auction results were announced this week. Bauer Media, NRJ and MTG are - again - holders of national radio concessions, bidding in total SEK916 million, roughly €94 million. The three eight-year national licenses, effective next August, insure continued FM distribution.

Bauer Media will be paying SEK408 million, about €42 million, to insure national FM distribution for its Mix Megapol brand. RBS Broadcasting, franchise holder of the NRJ brand, bid SEK307 million, about €31.5 million. Rix FM owner MTG, through Kilohertz AB, bid SEK201 million, roughly €20.5 million.

Suitcases full of cash were not the sole consideration. Bauer Media actually outbid RBS/NRJ for the second national license but media regulator Swedish Press and Broadcasting Authority (Myndigheten för press, radio och tv - MPRT) ruled having two national radio concessions would “compromise competition,” reported radionytt.se (October 30). The ad sales and infrastructure cooperation agreement between Bauer Media and RBS/NRJ was noted but deemed not a factor in the assignment as “the cooperation does not editorial issues.” (See more about media in Sweden here)

Bauer Media and RBS/NRJ actually outbid MTG for the third national concession but the MPRT decided that, too, would have a “bad impact” on competition. There were seven bidders for the three national radio concessions, which replaced 35 regional and 103 local radio licenses. The MPRT compensated by authorizing 80 new local commercial FM licenses.

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