Radio

Ofcom consults on future of radio regulation and licensing

Ofcom today outlines a possible framework for future regulation and licensing of the radio sector. The framework takes into account the ongoing transition of analogue radio listening to digital platforms; including Digital Audio Broadcasting (DAB), digital television and the internet.

There are a number of challenges currently facing the radio sector. These include increased competition from other technologies, such as the internet, and an increasing share of radio listening by digital platforms which places greater pressure on local analogue stations.

Ofcom’s proposed approach seeks to address these issues and ensure that as radio makes its transition to digital, it continues to offer listeners choice and diversity, and that regulation remains proportionate. Today’s consultation follows Ofcom’s discussion document published last November.

Ofcom’s consultation focuses on three main areas:

Regulation of commercial radio

Most regulation of commercial radio is currently focused on analogue local stations. As the proportion of listening on digital platforms increases Ofcom believes it makes sense to align the regulation of analogue radio with the regulation of DAB.

Ofcom proposes simplifying the level of detail required in analogue Formats, which specify the type of programming and the amount of local material a station must produce, and standardising the requirements for local material in programming based on the size of station.

These changes would allow stations to re-focus their local investment to meet listener needs more effectively. At the same time, the regulatory obligations imposed on smaller commercial radio stations would be reduced.

Ofcom also suggests that Government may wish to consider simplifying the current ownership rules, which currently apply in different ways to analogue and digital stations. Ofcom suggests moving to a single set of ownership rules across platforms as digital listening increases. Simplifying the ownership rules would provide greater flexibility for industry, and maintain listeners’ access to services and content from different providers.

Regulation of community radio

Ofcom has licensed 122 new community radio services to date. The level of regulation, such as funding restrictions and statutory licensing criteria, imposed upon these small stations is very high. Ofcom is seeking views on how the selection criteria, and ownership and funding rules in this area could be amended to reduce regulation. This will inform Ofcom’s work to prepare a report on community radio for the Secretary of State later this year.

Future use of analogue radio spectrum

Current trends suggest that 90% of all radio listening will be via digital platforms by 2017. At present, there are no plans to switch-off analogue (FM and AM) radio. Ofcom’s consultation seeks views on changes which could free-up spectrum, currently used by analogue radio services, at an appropriate time in the future.

Existing analogue commercial radio licences will expire between 2009 and 2027, depending upon the date of issue. Under current legislation, these licences would be re-advertised. However, in the future this spectrum might be better used for other services such as mobile television, more digital radio, more community radio services or other new technologies.

To avoid the possibility of inefficient spectrum use, Ofcom believes that Government and Parliament may wish to consider how to allow Ofcom to achieve common end-dates for all FM and AM licences. This will be a key question as digital radio listening continues to grow. Ofcom’s consultation sets out a suggested approach for achieving common end-dates, which includes:

• extending existing licences for an indefinite period;
• making any licences extended in this way subject to two years’ notice of termination; and
• removing the automatic renewal for analogue licences whose holders are also offering a DAB service on a relevant radio multiplex.

Any change to legislation and the timing of any changes are matters for Government and Parliament. In addition, Ofcom proposes two separate reviews of all analogue radio services:

• AM (Medium Wave) spectrum in 2009; and
• FM spectrum in 2012 or when digital listening accounts for 50% of all listening; whichever is earlier.

Both reviews would consider future use of analogue spectrum and set common end-dates for existing services (commercial and BBC). These reviews would include a full assessment of the costs and benefits, taking into account the needs of consumers, including the most vulnerable members of society.

Ofcom Chief Executive, Ed Richards, said: “Radio remains important to many consumers, but the environment which it operates in is changing. It is essential that regulation reflects this. The proposals we outline today seek to ensure a vibrant and innovative UK radio sector.”

The closing date for responses to Ofcom’s consultation is 29 June 2007.

Documents can be found on the OFCOM WEBSITE

The presentation from the launch can be seen below:

The Future of Radio - pdf version of Powerpoint presentation

Connate Entries

• June 14, 2006 -- The next community radio licensing round
• August 10, 2003 -- Community Radio
• September 7, 2004 -- Draft Community Radio Order 2004
• December 16, 2002 -- Radio Authority welcomes extension to Access Radio Pilot Scheme
• September 6, 2007 -- OFCOM Broadcast Bulletin - Issue number 91 - 20|08|07

© 2007 An Unevenly Distributed Future.