Mix 96 (Digital Radio Switchover) Debate

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Department: HM Treasury

Mix 96 (Digital Radio Switchover)

Eric Ollerenshaw Excerpts
Thursday 28th November 2013

(10 years, 5 months ago)

Commons Chamber
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Cheryl Gillan Portrait Mrs Gillan
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I was pleased that, early this year, the Minister provided certainty to some small stations by listing those that would be permitted to stay on FM. That removes any requirement for those stations to pay to broadcast on FM and DAB, but a cost-effective digital solution for small stations still needs to be identified. Otherwise, the stations hon. Members have mentioned could face extinction, because advertisers might, at some point, believe that it is not worth paying to reach those who continue to listen to FM stations.

Eric Ollerenshaw Portrait Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
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I congratulate my right hon. Friend on securing the debate. Given the size of my constituency, I have two local radio stations to plug: The Bay covers Morecambe bay and Radio Wave in Fleetwood covers the Fylde coast. What happened to the Conservative principle of gradualism? Why this sudden move when, as I understand it, only 15% of radios are digital and the market has gone down recently?

Cheryl Gillan Portrait Mrs Gillan
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We can always prove everything with statistics, but that statistic—that the rate of purchase of digital radios has decreased—was certainly put to me and there is no doubt about that. At the same time, I want to acknowledge how advanced the good companies are that provide digital technology services: I think that there are British components in 45% of digital broadcasting devices around the world. However, the hon. Gentleman is right.

Even while FM remains commercially viable, there is a worrying lack of certainty from Ofcom on how long those stations’ analogue licences would last. It is widely expected that the Minister will soon confirm—I have no idea whether he will—the switchover to digital radio, but he needs to address seriously the concerns of our local stations. Although they will not be required to upgrade from FM to DAB, they need a cost-effective option to do so when the time is right for them.

A private company, with the blessing of Ofcom, ran a recent trial on a proposed DAB solution for small stations, but that did not provide a proven solution for local broadcasters such as Mix 96. I hope, therefore, that the Minister is not going to rely on that example to bolster his case. Perhaps he could encourage Ofcom to fund further trials as soon as possible, as I understand that there are frequency, software, regulatory and signal delivery issues that make the solution from that trial a poor and inadequate replacement.

The Minister should ask Ofcom to provide small stations with greater certainty regarding the duration of their FM licences. If the Minister can assuage the concerns of small stations such as Mix 96 and say that there will be a cost-effective place for them in radio’s digital future, he can provide the certainty on digital radio switchover that the industry as a whole is looking for. It is important that the transition to digital is, as my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton) said, consumer-led and carefully managed. If it is mishandled by his Department, he will incur the anger of consumers who will suddenly find that they will have to find hundreds of pounds to upgrade their car radios and household sets simply to listen to the radio.

Two out of three radios purchased in the UK today are not DAB and less than 10% of vehicles have a DAB radio. As 21% of radio listening happens in cars, and, as it stands, DAB is not available even on smartphones or mobile phones in the UK, a lot of people would be affected by the plans as presently proposed. As it is, I understand that the Minister receives more complaints about DAB radio than anything else, while the existing FM radio transmission system achieves 99% UK population coverage and is both robust and cost effective. I understand that there is no proposed alternative use for the FM radio spectrum. There is, therefore, no digital dividend to be gained by the Government. I hope the Minister will address that point.

I want to make it clear that this is not about cancelling the digital programme for radio; it is about finding a solution that protects and accommodates our small local radio stations. Many more points could be made, but I hope that the Minister now has the flavour of a widespread problem and will respond with positive news for Splash FM, Minster FM, KLFM, Sun FM, Pirate FM, High Peak Radio, MKFM, The Bay, Radio Wave—I hope I have not missed anybody’s radio station—and our very own Mix 96 and all their loyal listeners, our constituents and all my colleagues who have come here today to represent similar views from around the country. I look forward to hearing what the Minister has to say.