Digital Switchover: Communications Committee Report

Lord St John of Bletso Excerpts

Tuesday 12th October 2010 Lords Chamber

[Lord St John of Bletso]

My Lords, it was a great privilege and pleasure to be part of this extremely topical inquiry by the Communications Committee chaired by the noble Lord, Lord Fowler. Coming in as the 10th Member in the batting order, I fear that many of the points that I shall make have already been made.

However, I share the concerns of the noble Lord, Lord Donoughue, because while there is a very compelling case for digital television switchover which has progressed on time and on budget—in fact under budget, according to the noble Lord, Lord Inglewood—with minimal teething problems, I have struggled to comprehend the urgency for digital radio switchover and particularly the need for it to be implemented by 2015. I want briefly in my remarks to comment on the SWOT analysis of the implementation of the plan by 2015.

Clearly, with radio playing such an important part in many households throughout the United Kingdom, it is vital that the needs and concerns of radio listeners are fully addressed. For consumers voluntarily to adopt digital radio there needs to be an independent report as well as a cost-benefit analysis giving a balanced view on the advantages and disadvantages of the switchover.

It is difficult to find a single authoritative source that explains what to look for when buying a digital radio and how to compare different products. I agree with the recommendation of Consumer Focus that there should be an easy-to-read checklist that would prompt consumers about what digital products can deliver, explain the different features and help them to make more informed decisions. However, I also believe that there should be better staff training at retail outlets and that there should be more consistent training whereby retail staff are encouraged to become “accredited digital advisers”, as have I heard them referred to.

As the noble Lord, Lord Gordon of Strathblane, mentioned, the commercial radio industry is clearly under considerable pressure. Advertising revenues in 2000 were in excess of £750 million and have reduced to currently around £560 million. Broadcasters which have invested in digital services have had to pay dual transmission costs. I was surprised to hear that more than two-thirds of commercial radio stations are loss-making or making less than £100,000 per annum. I appreciate that the FM spectrum is almost full at the moment and, therefore, the release of digital spectrum would give the industry more opportunity to grow and offer more services to listeners, but I would argue that consumers are more interested in the quality of content and signal, rather than an additional choice of programmes. As the chief executive of RadioCentre, Andrew Harrison, pointed out,

“with the current structural economies of the sector, it is very difficult to both maintain an analogue distribution network and invest in digital content”.

One of the catalysts to greater take-up of digital radio will be the improvement of DAB coverage. I quote from paragraph 105 of our report, which states:

“Improved coverage will encourage more digital listening, more purchases of digital receivers, greater advertising revenues generated by digital stations, and more investment in digital content”.

That is crucial. It is also essential to ensure that consumers have access to digital services and that no groups are left disfranchised should analogue services be switched off in 2015.

While Digital UK has managed the communications campaign for TV switchover in an exemplary and efficient manner, I question the effectiveness of the communications campaign for radio switchover. This is the responsibility not just of Digital Radio UK, but also of manufacturers and retail outlets.

In preparation for a digital radio switchover, I strongly support specific measures being put in place to protect vulnerable listeners such as blind and partially sighted people, who rely on their radios even more than do other listeners. The recent excellent DCMS Consumer Expert Group Report, published in mid-September, stated:

“Research shows that vulnerable listeners are the slowest to convert to new technology and as such are unlikely to be among those who voluntarily adopt digital radio before a switchover is announced”.

One of our key recommendations was that all digital radios contain a multistandard chip, giving us the option of a subsequent move to a different standard. I understand that some but not all DAB radios can be upgraded to work with DAB+. With technology advancing at such a rapid rate, it is inevitable that we will have a future of DAB+. I was tempted to speak about internet radio, but I will resist. My concern is that some cheaper DAB radios may not be upgradeable and may become obsolete. It is important that there should be an industry standard label indicating if a DAB radio is upgradeable to work with other digital radio formats.

One major concern about the digital radio switchover raised by the inquiry related to the use of in-car radios. This was the hobby-horse of the noble Lord, Lord Maxton, and I will not repeat the concerns that he and others raised. I hope that the noble Lord, Lord Fowler, is correct in saying that all vehicle manufacturers will install digital radios by 2013, and that there will be a reliable solution to in-vehicle conversions.

We have heard a plethora of statistics. The noble Lord, Lord Donoughue, mentioned that there are at least 120 million analogue radios in circulation, and I understand that at least 90 million are in regular use. It is important that clear guidelines are given to consumers and retailers to ensure that regulations on the disposal of obsolete devices are appropriately applied and followed.

In conclusion, while I am a firm supporter of the digital age and all its benefits of choice and quality, there is not yet a compelling argument that the target date of 2015 for digital radio switchover is realistic or practical. Any target date set should be looked upon as secondary to the important consumer issues.