25/01

14 February 2001

The Authority is pleased that the White Paper recognises radio's distinct nature and considers it essential that the internal structure of OFCOM makes provisions to retain distinctiveness in the regulation of radio.

Commenting on the White Paper, Richard Hooper, Chair of the Radio Authority, said:

The Authority's response concentrates on six topics:

• Local plurality in radio ownership should be guaranteed through a series of transparent formulae to ensure that in any area with a well developed local radio market there are at least three separate owners of local commercial stations, in addition to national commercial services and the BBC. The specific formulae proposed would allow for up to five licences to be owned by one company if 12 or more Independent Local Radio licences exist in one area.
• Local newspapers should be able to own an analogue radio licence in their circulation area provided that at least one other local commercial radio service is broadcast in that area.
• A two year moratorium should be put in place for the selling on of licences together with powers to protect the existing format.
• Plurality rules for local radio should operate concurrently with general competition principles to mergers and acquisitions at a local and national level.

• Multi-faith ownership of national radio licences should be permitted.

• The Authority will be publishing the outcome of its Access Radio seminar (held on 12 February) shortly.

• The Radio Broadcasting Division of OFCOM should be responsible for the 'third tier' oversight of BBC Radio.
• Reserve powers in respect of the BBC should pass from the Secretary of State to OFCOM.

• OFCOM should be responsible for frequency planning for all radio to ensure the most productive use of a scarce public resource.
• New analogue radio licensing will continue until around 2006, and new digital radio licensing until towards the end of the decade. Such licensing will need specialist expertise within OFCOM, with the final decision on licensing being made by a Radio Committee of independent non-executives, reflecting the public interest.

• OFCOM should be a statutory corporation and its Board should be headed by a non-executive Chairman with a majority of independent non-executive members.
• The wide range of tasks which OFCOM will need to undertake means that it should not be artificially divided into two or three sections but should be an integrated body. It will need to include a specialist Radio Broadcasting Division, undertaking the licensing of analogue services and digital multiplexes, format management, and overseeing radio specific ownership rules, for a number of years after the formation of OFCOM, and to establish co-ordinating machinery for radio specialisms within the other horizontal divisions.
• OFCOM should be given an additional objective to have due regard to the commercial interests and health of the media and communications industry.

1. A New Future for Communications Radio Authority Response in full can be viewed by clicking here.   
       
2. The Authority published its submission to DCMS/DTI on 'Radio Regulation for the 21^st Century' in June 2000. Copies are available from its Press & Information Office or by clicking here.
   
3. The Radio Authority is responsible for licensing and regulating Independent Radio in accordance with the statutory requirements of the Broadcasting Acts 1990 and 1996. It plans frequencies, awards licences, regulates programming and advertising, and plays an active role in the discussion and formulation of policies which affect the Independent Radio industry and its listeners.