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28 June 2001

RADIO AUTHORITY PROPOSES NEW RULES ON RADIO OWNERSHIP

The Radio Authority's Chief Executive, Tony Stoller, today announced proposals for a new radio ownership regime for local analogue radio licences. Speaking at the radio industry's annual Congress, Tony Stoller said:

"The Radio Authority has developed its proposals for new ownership rules for radio, jointly with the Commercial Radio Companies Association, to be recommended to Government for the new Communications Bill. These offer further liberalisation nationally, whilst at the same time ensuring local plurality and diversity."

Paul Brown, Chief Executive of the Commercial Radio Companies Association (CRCA), said:

"Commercial radio worked hard with the Radio Authority to arrive at local ownership proposals that would allow it to deliver new and more diverse services for listeners while growing its business and ensuring a variety of separate local voices."

The proposals by the Radio Authority, supported by the Commerical Radio Companies Association, for a new ownership regime have been submitted to the Department for Culture, Media & Sport and the Department for Trade and Industry. A summary of the new rules is set out below.

Agreed key radio ownership principles:
  • The UK-wide ownership points system should be abolished
  • Normal competition rules should apply for UK ownership of Independent Local Radio (ILR) stations
  • A clear and transparent formula should be implemented for in-area concentration of local radio ownership
  • Where the market is sufficiently developed, local plurality rules should ensure at least three separate owners of ILR stations, irrespective of waveband, in addition to the BBC
  • There should be no 'cap' on the number of local radio licences a person can own

ILR ownership formula:
  • A person is able to own two overlapping radio licences, on any waveband, in a single locality without restriction (even where there are only two licences in an area)
  • Where there are three or more licences operating in any locality, then the principle of plurality of ownership and diversity in the sources of information available is achieved by a detailed but transparent formula using data freely available on-line
  • Overlapping areas are defined as at present: where the adult population of the Measured Coverage Area (MCA) of one service contains 50% or more of the adult population of the MCA of another
  • The rules will be waveband neutral. This is because the rules are designed to address plurality and diversity issues rather than market competition issues
  • A person will be deemed to 'own' a radio licence if he/she has a shareholding which confers control or has a material interest in that licence
  • The formula will be applied to overlapping licences held by (or to be acquired by) a person in a relevant area
  • Each of these licences will have a value assigned to them
  • An aggregate number of local points, allocated to each, would then be calculated
  • A person may own licences with a points value of up to 45% of the total points in question.

Click here for the complete document

ENDS

NOTES TO EDITORS

1. The Radio Authority's full submission to Government 'Ownership Rules for Local Radio - Radio Authority Revised Proposals' (28 June 2001) is available from its Press & Information Office or from its website: www.radioauthority.org.uk.

2. 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.

 

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