Raft Of New FM Radio Licences Proposed

The Government is proposing the launch of 32 new FM radio stations, which could provide services to a number of key cities over the next few years.

The proposal to free the licences, which would be warmly received by the commercial radio industry, is being put forward by the Radio Authority as part of its hand-over to the new communications regulator, Ofcom, later this year (see Communications Bill Lays Down OFCOM Framework).

The Authority is suggesting that there is potential for the creation of dozens of large scale licences in metropolitan areas such as Edinburgh, Manchester, Liverpool and Newcastle, along with a number in non-metropolitan areas such as Swindon and Barrow-in-Furness.

However, the possibility of the further development of radio licences in London, Glasgow, the West Midlands, Leicester, Derby, Nottingham, Sheffield, Leeds and Bradford has been ruled out on the grounds that these areas are already well served by existing stations.

At this stage the Radio Authority is simply suggesting that there is potential for further development in these areas. However, if Ofcom were to take on board the proposals, all of the UK’s major commercial radio groups, including Capital Radio, Chrysalis, GWR and Emap, could stand to benefit.

Commenting on the proposals, Chrysalis Radio’s chief executive, Phil Riley, said: “Obviously this is great news for the commercial radio industry. However, we’ve got to be practical, this is not going to happen for some time. Ofcom will have to get up and running and then it will have to award the Radio Authority’s remaining licences. Realistically we are looking at 2004 and beyond.”

The Radio Authority began advertising new licences for the development of independent radio in January 1991. Since then it has awarded three national licences to Virgin, Talksport and Classic FM and 156 new local radio licences. There is currently a total of 263 radio stations operating in the UK.

Earlier this year the commercial radio industry received a boost as the Government confirmed plans to relax the radio ownership regulations, in a move that clears the way for greater consolidation within the sector (see Government Confirms Relaxation Of Radio Ownership Rules).

Radio Authority: 020 7430 2724 www.radioauthority.org.uk

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