Legislative Reform (Renewal of National Radio Multiplex Licences) Order 2022

Lord Bassam of Brighton Excerpts

Monday 4th April 2022 Grand Committee

[Lord Clement-Jones (LD)]

My Lords, I cannot believe that this is going to be a mass event. I thank the Minister for his introduction to the LRO and welcome the commitment to digital radio represented by this LRO. However, as we noted during recent Oral Questions, we are all looking forward to the government response to the Digital Radio and Audio Review of last October, which has not yet been published. Perhaps the Minister would reveal a little more than he did about when we can expect it to be forthcoming—“spring” or “summer” would do; “shortly” is a word he might wish to deploy as well.

There are some questions to be answered, which I hope will appear in the response and which are relevant to today’s LRO. I recognise that the BEIS Select Committee asked some of these, but I want to go a little further. Clearly, IP radio is coming in in force, especially with smart speakers and voice assistants now beginning to replace dedicated radio sets. I for one will be interested in what the Government have to say about prominence and algorithmic curation of playlists, station selection and content, and how this will fit with the new statutory competition framework for the Digital Markets Unit.

Last week, representatives from news media and publishing, including radio, highlighted the need for the Government to introduce statutory powers for the DMU to help tackle the threat of tech platforms, but over the weekend there were reports that this may be dropped from the Queen’s Speech. Does the Minister recognise the urgency of putting in place such powers in regulating online gatekeepers such as smart speakers and voice assistants? What proposals will there be in the next parliamentary Session to address the significant current risk to media plurality and broadcasters’ business models from the digital platforms linked to these devices?

In June 2021, the then Secretary of State for DCMS announced plans for a broadcasting White Paper, which would address a range of issues, including regulation of commercial radio and prominence of UK radio services online and on smart speakers. When is this White Paper expected and will it address these issues?

However, surely key in all this is that spectrum for the multiplexes is a scarce commodity, and demand for it will depend on how much commercial radio DAB is replaced by IP broadcasting. Should not any renewal of the DAB multiplex licences have been set in context with the response to the review on this, particularly in terms of the competition issues associated with any renewal and the pressures on the two multiplexes? In addition, is not the potential change to mandatory licence conditions to include the necessity to include DAB+ relevant in terms of the pressure on the two systems, as well as the ability to satisfy demand for space on the multiplexes?

Similarly, I note the commitment mentioned by the Minister not to switch off FM services before 2030, despite digital reaching 66% of listening. Is not the future of FM relevant to the renewal of the multiplex licences? Will this be covered by the response to the review?

There seems little price competition in the grant of licences. In other areas, such as mobile telephony spectrum, we have seen a bidding system—why not in this area now that digital radio technology is well established?

The general impression is that the Government might have jumped the gun in this area, but in other areas relating to commercial radio they are dragging their heels. What can the Government say in response to all these concerns, many of which are shared by the commercial radio industry?

[Lord Bassam of Brighton (Lab)]

My Lords, we too welcome the order, which secures the future of popular radio stations including Absolute Radio, Classic FM and Times Radio, and will ensure that, as a product of the renewal of the UK national digital radio multiplex licences, we have stability and certainty for the next decade, as the Minister said.

As I understand matters, the Government are giving Ofcom the power to renew the two commercial radio multiplex licences, Digital One Ltd and Sound Digital Ltd, which, as the Minister explained, are due to expire in 2023 and 2028 respectively. This move will mean that audiences across the UK can enjoy uninterrupted access to the huge range of radio content available from the country’s national commercial broadcasters through their digital devices on a free-to-air basis. Well-known stations on the Digital One Ltd multiplex include Absolute Radio, Capital and Smooth. Listeners can find the likes of Jazz FM and talkRADIO on the Sound Digital Ltd multiplex. That is all to the good.

As I understand it, the first of the two licences is due to expire in November next year. Rather than going continually through the bidding process every five years, the Government seem to have decided to spare both sides the time and cost of doing so. That too is welcome.

As has been said, the Commons BEIS Committee has published its report on the order. This confirms that it meets all the relevant tests that would be expected. We welcome the fact that those have been properly gone through, and we consider the policy to be proportionate. It has been subject to appropriate consultation, and that too is to be welcomed.

We support the change and recognise the enduring value of radio in general terms. Who does not love “The Archers”, “Desert Island Discs”, Jazz FM, BBC 6 Music—I could go on? All these bring great pleasure to us.