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16|11|06

Ofcom assesses radio regulation and licensing

Ofcom today published a discussion document on the future of regulation and licensing in the radio sector.

This represents the first stage of Ofcom’s work to address a number of technology, regulatory and revenue challenges facing the radio industry. The discussion document sets out areas where changes may be considered in the future and seeks views from stakeholders on this assessment.

The issues under assessment include:

• competition from other technologies such as podcasting presents a growing challenge to the radio industry, despite listeners’ continued interest in local content delivered over the air;
• radio advertising growth is stalling as advertisers switch to internet advertising; and
• digital radio is taking an increasing share of radio listening, increasing pressure on local stations.

Ofcom has identified specific areas where changes may need consideration. These include:

• whether current regulatory obligations, such as a station’s Format – which sets out in detail the type of programming and amount of local material it will commit to broadcast – are still required to ensure listeners benefit from a broad range of services;
• the best way to ensure the greatest flexibility in spectrum use before embarking on the re-licensing process for analogue commercial radio licences. In time, a more flexible approach may lead to the release of analogue (FM and AM) spectrum for other uses, including digital broadcasting;
• the potential to replace existing AM licences as they expire with DRM (Digital Radio Mondiale) services, which uses Medium Wave spectrum to broadcast digitally;
• whether steps need to be taken to ensure the continued provision of local radio services on local DAB multiplexes as analogue listening declines; and
• whether any changes to the ownership rules for local radio analogue and digital services, radio multiplexes and local cross-media should be considered.

The deadline for responses is 14 December 2006. Subject to responses, Ofcom will develop detailed proposals to be set out in a consultation next year.

The discussion document, The Future of Radio, can be found in the Related Items.

Ends.

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