Broadcasting (Radio Multiplex Services) Bill — House of Commons, 2017-01-13
Topic: Technology
Pauline Elizabeth Latham (Conservative, Centre-right): I know that my hon. Friend is usually here on a Friday, and I have to say that I am guilty, as are many other Members, of normally spending Fridays in my constituency. However, I am delighted to be here today to support my hon. Friend the Member for Torbay I said at the beginning of my speech that my hon. Friend has brought forward a Bill on an important subject. Those words of praise are often said out of polite custom in this place, but on this occasion they could not be more deserved, as he actually slept in Parliament overnight in order to secure the opportunity to introduce the Bill, such was his passion. As he pointed out afterwards, the reality of sleeping in a royal palace is far less glamorous than it sounds. I hope for his sake that he has had a better night’s sleep before Second Reading than he did on that occasion. I do not know how he passed the hours while waiting to submit his Bill, but it would have been extremely apt if he had listened to a digital radio to keep him company As in so many sectors across the UK, digital has become hugely important for radio. In the third quarter of 2016, just under half of all radio listening—45.5%—was on a digital platform, and that figure will increase. The radio industry predicts that if current trends continue, the number will be 50% by the end of 2017—I think that is a fairly conservative view. Small-scale DAB—the kind of digital radio that the Bill deals with—is especially important. Industry data show that 60% of UK homes today have at least one DAB radio, and the DAB terrestrial platform accounts for about three quarters of all digital radio listening. These figures underline the growing importance of the area and make it more important than ever that small-scale digital radio becomes a viable option for as many stations as possible I recently listened to Radio Derby on the digital platform, and it does have a better signal than I used to get, so I am pleased that it has been able to move to that platform and continue on FM. Unfortunately, small radio stations currently face a major disadvantage when it comes to digital radio. At present, the costs and the licensing scheme are not conducive to allowing small-scale radio services access to the DAB radio network. As with anything, costs vary, but digital specialists estimate that the cost of carriage for a mono service on a non-London multiplex is between £3,500 and £5,000 per month. That could mean £60,000 a year. Needless to say, that is a pretty hefty sum for a small station, with the consequence that it is priced out of the market. Contrast that with Ofcom’s estimate that using small-scale DAB could allow stations to access the digital market from just £9,000. That is a huge difference, and it would make the market much more accessible for smaller stations. Alongside cost, the current climate creates a number of other key problems for smaller stations. County-sized local DAB multiplexes exist and are used effectively by several stations, such as Radio Derby, which covers not only the county of Derbyshire but part of east Staffordshire. However, their large coverage area means that they are not suitable for smaller stations that want to transition to DAB but cannot do so. Even if local DAB multiplexes could be used in theory, stations encounter problems in practice as there is not always sufficient capacity for them to operate Providers are very aware of the fact that they face dwindling audience numbers and the fall in advertising revenue that comes with that as digital listening by default becomes the norm. Quite understandably, they want to change that. Ofcom trials have proved that there is major demand for change and that appropriate legislation would be followed up with action. In a research report from September 2016, Ofcom states that "there is a significant level of demand from smaller radio stations for small scale DAB, and that a wider roll-out of additional small scale services into more geographic areas would be both technically possible and commercially sustainable" That statement was made after a trial in which 100 small commercial and community radio stations successfully broadcast on terrestrial DAB for the first time. Those stations came from a wide range of different backgrounds, from new entrants to established companies, which provides an even more compelling case that all small stations could make a success of using digital radio.