A total of 178 licences to operate radio stations will be auctioned next month, including about 50 in rural parts of the South.
The radio frequency auction - the first since 2009 - is being conducted online by the Ministry of Business, Innovation and Employment.
Radio broadcasters require either an AM or FM licence, and the Otago Daily Times understands such licences can sell for as much as $5million in Auckland.
Those being offered in the auction have reserve prices ranging from $1200 in Otematata, Twizel and Ranfurly to $24,000 at Mt Cargill.
A ministry spokesman said about 50 licences would be auctioned throughout Otago and Southland at about 10 different transmission sites.
Most of those frequencies were for FM broadcasting bands, but some were for AM bands.
Mt Cargill will have three licences up for auction, each valued at $24,000.
All three are being used by national networks, two by the Radio Network and one by MediaWorks.
MediaWorks serves stations throughout the South, including Otago, Queenstown, Alexandra and Southland, while the Radio Network serves Dunedin, Invercargill, Oamaru and Queenstown.
Media Works group communications manager Rachel Morimer said it was too early to discuss the company's options.
''We are currently reviewing the radio frequencies which are up for auction, including all rural licences.
''No decisions have been made in relation to any at this stage.''
Four licences are for Mt Maude, near Wanaka, each with a reserve of $6500.
Wanaka is served by about 14 radio stations and Radio Wanaka owner Mike Regal described this as ''saturation'' point.
''I would be surprised if anyone came in and had a crack locally. But it's a free market.''
Mr Regal said obtaining the licence was just the first cost of establishing a radio station, which could amount to $100,000.
He called the auction ''just a revenue-generating'' exercise for the Government.
''Every few years there are frequency auctions and they split the FM band up even further. With the amount of stations that we have, do we really need any more? Probably not.''
He did not rule out the possibility of a national radio network buying up licences to allow their existing broadcasts to reach Wanaka.
The town is not served by such stations as MediaWorks, Radio Live and the Radio Network's Radio Sport.
The Radio Network general manager talk Dallas Gurney declined to discuss the auction when approached by the ODT.
- Mark Price and Bridget Rutherford
