Ralph Bernard, chief executive of GCap Media, criticised media regulator Ofcom today, branding the watchdog’s decision to create a new national digital radio multiplex as unfair and illegal.
Speaking on the panel at MediaTel INSIGHT’s Digital Radio and Beyond Seminar, held in association with MediaGuardian, Bernard spelt out his dismay at the regulator’s actions, following a deal to give GWR, now part of GCap, the rights to operate the only national multiplex seven years ago.
“When you write words like ‘sole national licence’ and ‘one and only’ you should stand by those, not use weasel words to get out of it at a later date,” he said.
“GWR was put under some considerable pressure to invest in a national licence by the then regulator, and had we not done that then there would be no national digital radio today. There was no ‘Plan B’ and it was an assumption by the regulator that someone would just go for it. We were seduced.”
GCap is currently considering action for a judicial review against Ofcom, claiming it has encroached upon its 24 year solus licence.
“We built the national network of transmitters, and in return we were led to believe we would be the only player in the market for a substantial period. We trusted the figure of authority, and now after creating the market, Johnny Come-latelys want to fill their boots. It’s not right, it’s not fair and I think it is illegal,” Bernard stated.
The radio boss stated that the decision on whether or not to pursue legal action would be taken by GCap by the end of January, explaining: “You do not threaten to take a regulator to a judicial review lightly,” and that the watchdog had yet to sanction the creation of further digital multiplexes.
Supporting his fellow panelist at the event, Simon Cole, chief executive of UBC Media, was careful to advocate the wider choice of digital stations offered by increased multiplexes. “I think Ralph should be congratulated for kick-starting digital,” he explained, “although I do think there’s room in the marketplace for more players, and the investment already made will pay off in the long run.”
A Digital Radio Executive Report is available to buy at: http://www.mediatelinsight.co.uk/reports priced £225. The report features the latest forecasts and current marketplace dynamics for the digital radio market, including the uptake and listening patterns emerging for this medium, and looks forward to where new technological advances will take radio in the future.
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