Ofcom Out Of Tune Over Community Radio Proposals
Proposals by Ofcom to introduce a range of new community radio stations across the UK are being met with criticism from commercial radio companies and industry bodies.
The new super-regulator plans to launch a number of not-for-profit stations that will be funded by Government grants and advertising revenue. The community radio projects will provide services for social gain rather than for commercial reasons and will be required to broadcast content in the interest of local communities.
The move follows a similar announcement earlier this month that Ofcom would be licensing 35 new FM radio stations across the UK. The move could benefit a number of key cities over the next few years, ranging from Cornwall and Durham to Belfast, Bristol and Aberdeen (see Ofcom Plans To Roll Out Raft Of New Radio Licences).
Speaking of the proposals Lisa Kerr, external affairs manager for the Commercial Radio Companies Association, said: “Our small stations are very concerned, it could have a significant negative impact on the most critical small commercial stations and potentially distort local advertising.”
Ofcom’s plans would bring UK radio into line with France, Australia and Ireland, where community radio is already available. However, Daniel Owen, director of regulatory and public affairs at Chrysalis Radio, believes Ofcom need to be careful when defining the case for community stations.
He said: “I can see the potential for social gain but I hope that Ofcom will take quite a narrow definition of social gain and not give these licences out to just anyone who feels they are not well served by existing radio stations.
“My concern is the impact on small scale commercial stations who, to my mind, already provide a community radio service with very tight margins and make minute profits, if any at all. The impact of having a community radio station selling advertising within their patch could be very significant,” he added.
Ofcom is currently asking the radio industry for views on how it should manage the licensing and regulation of small not-for-profit stations dedicated to serving local audiences in rural and urban areas. The consultation period for proposals ends on 20 April.
Ofcom: 0845 456 3000 www.ofcom.gov.uk
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