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19|10|05

The regulation of commercial radio - locally, nationally and digitally

Ofcom today published its Radio Review document, setting out conclusions on the future regulation of the UK commercial radio sector and seeking further views on its proposal to encourage the development of Digital Audio Broadcasting (DAB) radio at both a local and national level.

The review has been undertaken as a result of requirements under Section 67 of the Broadcasting Act 1996 and Section 314 of the Communications Act 2003.

Ofcom's remit in the regulation of the UK's radio market covers the following areas:

• licensing analogue (AM and FM) and digital (DAB and digital television) radio services in the commercial and community radio sectors;
• regulating content on those services (although licensing and regulation differ by platform);
• regulating aspects of BBC radio output concerning harm and offence and fairness and privacy; and
• spectrum policy for analogue and digital services.

Key points:

Digital radio

Digital radio provides many benefits for listeners, including greater choice of stations, easier tuning, more features and the potential for data services. In the future it is likely that the vast majority of radio listening will be on digital platforms such as DAB and via digital television, the internet and mobile phones.

DAB is currently the only platform which offers the benefit of digital radio listening on home and portable radios and which can guarantee a range of local and national free-to-air services to the vast majority of the UK . It is therefore important that Ofcom puts in place the conditions to enable DAB digital radio to expand and thrive.

Ofcom today seeks further views on its proposal to allocate three blocks of VHF Band III spectrum for new local DAB multiplexes and a further block of spectrum for an additional national multiplex under the terms of the Broadcasting Act. This will:

• ensure that every part of the UK can benefit from at least one local DAB multiplex, thereby filling in gaps in existing coverage;
• allow for up to 74 existing local FM and AM analogue services to have the opportunity to be broadcast on DAB, in addition to those analogue stations already available on the DAB platform;
• allow all local and regional BBC radio stations to move from analogue to digital;
• enable radio stations which account for 95% of commercial listening to move to DAB; and
• create a second commercial national DAB multiplex, which could enable the transmission of up to 10 digital services. Ofcom is proposing that a second national commercial multiplex should provide services which appeal to tastes and interests distinct from those served by existing national commercial DAB services.

Subject to consultation, Ofcom would expect to begin advertising the national and local radio multiplexes in late 2006, for award in early 2007.

These proposals are set out in detail in a consultation document - ‘Radio: Licensing policy for VHF Band III, sub-band 3’ - being published today alongside the Radio Review.

The future regulation of radio

Today’s statement also confirms Ofcom’s detailed approach to the regulation of commercial radio. Key points include:

• a move towards a greater focus on output regulation, concentrating on what the listener actually hears as opposed to how programmes are produced;
• ensuring compliance with a station’s licensing requirements through a combination of responding to complaints, the sampling of output and the establishment of a Public File reporting each station’s activities;
• a requirement that broadcasters follow Localness Guidelines, setting out guidance on how stations can best deliver local elements of their output; and
• a set of proposals on procedures for handling Format change requests for analogue local commercial radio services.

Next steps

• The closing date for responses to Ofcom’s proposal to allocate three blocks of VHF Band III spectrum to fill in the gaps in local multiplex coverage and one block to a new national multiplex is: 16 November, 2005.
• The closing date for proposals on the regulation of Format changes for analogue commercial radio stations is: 11 January, 2006 .

Ofcom Chief Executive Stephen Carter said: “Our proposals will give more freedom and more digital capacity to commercial radio. We would ask the industry to give careful consideration to our thinking.”

Ofcom’s Radio Review document, ‘Preparing for the Future’, is available from the Ofcom website at: http://www.ofcom.org.uk/consult/condocs/radio_reviewp2/

The consultation document, ‘Radio – Licensing policy for VHF Band III, sub-band 3’, is available from the Ofcom website at: http://www.ofcom.org.uk/consult/condocs/vhf/

Ends

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