The value of national commercial radio licences: renewal 2017
SEO and IViR have determined the value for the renewal of the national commercial radio licences. This was done based on the methodology that was developed in 2011 by SEO/IViR. For the frequency spectra with special stipulations the effect of the stipulations has now been estimated using market prices from 2003. This results in a cumulative renewal value of €8.484 million (before tax) for all spectra combined.
The current licences for national and non-national commercial radio expire on 31 August 2017. The Ministry of Economic Affairs (EZ) intends to renew the current (national) licences for a period of five years until 31 August 2022 and, as was the case with the renewal in 2011, has asked SEO Amsterdam Economics (SEO) and the Institute for Information Law (IViR) to perform a study into the value that these licences represent to a newcomer with average efficiency.
The method developed by SEO/IViR results in the following values per frequency spectrum for a 5-year renewal per 1 September 2017: spectrum A1 (€2.544 million), spectrum A3 (€2.758 million), spectrum A6 (€2.324 million) and spectrum A7 (€0.859 million), which are all values before tax. For the other spectra, the renewal has no value to a newcomer. This does not imply that the spectra do not represent any value for the current licence holders: they have already invested in, for example, transmitters and have built up a following. However, the profit loss or costs for third parties (opportunity costs) due to renewal are zero. Therefore, extension without a financial component is considered to be in line with market conditions for these spectra.
Do you have questions about this publication?
Feel free to contact Carl Koopmans via e-mail or phone. He will respond to your questions as soon as possible.
"*" indicates required fields