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Foreword

In phase I of Radio – preparing for the future we set out our plans to facilitate the growth of Digital Audio Broadcast (DAB) digital radio by allocating more VHF Band III spectrum to local and national DAB.

While many people agreed with our plans, there were objections from others.

So, we have returned to first principles to consider what we should do. This document sets out the additional evidence we have considered, the analysis we have done, and the proposals we are making.

We now expect four blocks of spectrum to be available within Band III. Ofcom’s overall spectrum framework policies suggest that spectrum should be allocated in a technology and service neutral way and be auctioned, to allow the market to decide on its use, unless there are exceptional policy reasons for doing otherwise. The hurdle rate for such grounds is high. It requires confidence that the public policy grounds are genuinely compelling, and the benefits of intervening significantly outweigh the costs.

We consider that in this case the public policy grounds are compelling. They relate to the need to secure wider availability of local digital radio services in areas that presently don’t have them, and more digital radio services available nationally. These reasons are particular to the present circumstances of digital radio.

While radio is available on many digital platforms, DAB digital radio is the only digital platform currently available that can deliver national and local services to portable and mobile receivers throughout the UK. Local digital radio services are available in many parts of the country but not all, because a lack of spectrum limited past licensing.

So, to allow every part of the UK to benefit from local digital radio services, we propose to allocate three blocks of spectrum in Band III to fill the gaps in existing local coverage.

It has been argued that all the potential new spectrum should be allocated to local multiplexes to allow a migration path to DAB for all existing and planned analogue radio services. In fact our plans allow for the migration of all BBC stations, and those stations which account for 95% of existing commercial radio listening. But this document explains our view it would not be the best use of spectrum to allocate the fourth block of spectrum to more local multiplexes.

There are several reasons for this. One of the most important is our view that listeners’ interests will be best served by making more services available nationally. There is evidence of strong demand from operators wishing to provide such services, and we judge that making more services available nationally is the best way of strengthening listener range and choice. We know from other platforms, such as digital satellite, that listeners have a wider range of radio stations than is currently available on DAB, and we do not believe that any impact upon existing multiplex operators will be disproportionate. We also judge that using the fourth block for more local services on DAB would, in practice, have little benefit to stations that presently lack a migration path to digital: other technologies, such as Digital Radio Mondiale are likely to be more suitable.

The Communications Act is clear that Ofcom has a duty to secure a wide range of radio services throughout the UK that taken as a whole are both of high quality and appeal to a variety of tastes and interests. In our view, this should be taken to mean that any new services on the additional national multiplex should appeal to tastes and interests that are distinct from those met by the existing commercial multiplex.

Ofcom therefore proposes to allocate the fourth block to a new national multiplex. We also propose to award all the multiplexes under the process set out in the Broadcasting Act 1996, to help ensure we achieve our policy objectives.

This document sets out proposals that should help to create a virtuous circle for digital radio. With more opportunities for existing and new services to be carried on DAB, the attractiveness of the DAB platform can only be increased for listeners and advertisers - thus helping to secure the digital future radio needs.

The full document is available below

• Responses
• Radio - Licensing Policy for VHF Band III, Sub-band 3 [pdf]
  Full print version
• Appendix A: Results of Consumer Research [pdf]
  Research into consumer demand for extra stations and impact on DAB take-up
• Appendix B1: Summary of consultation responses [pdf]
  Full print version
• Appendix B2: Summary of responses to “Opportunities for Future Use of Spectrum within VHF Band III and in the 1.5 GHz Band” [pdf]
  Full print version
• Appendix C: Glossary [pdf]
  Full print version
• Statement: Radio - Licensing Policy for VHF Band III, Sub-band 3

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