UK radio companies call for AM and FM switch-off by 2015



By Juliette Garside
Sunday Telegraph
24 June 2007

Britain's commercial radio companies are lobbying for the FM and AM radio
signals to be switched off, leaving listeners forced to tune in via digital
radio sets or the internet.

The nation's network of terrestrial TV transmitters is due to be shut down
in just four years' time. Now, the radio companies want the AM and FM
signals to follow suit, with some broadcasters calling for a shutdown as
early as 2015.

The radio companies claim that their medium will be left behind unless the
government orders a cut-off date.

But the move is likely to spark a debate about whether listeners should be
forced to junk their old radios and upgrade to a technology many see as
unnecessary, or even inferior.

Industry body the RadioCentre will write to communications watchdog Ofcom
next week calling for the regulator to set a date. Chief executive Andrew
Harrison said: "If you've got every home wired up to broadband, every home
with a digital TV, everyone with a 3G phone and an iPod, the traditional
analogue radio is going to look very old-fashioned. In five years' time
Britain will be a digital economy, and radio should play its role in that."

Digital radio sets allow users to pause and rewind live radio, and receive
news and traffic alerts in text form across a built-in screen. Ultimately,
radio transmitters will be able to send images to go with the sounds, and
listeners will be able to buy music or download programmes over the
airwaves.

British radio companies are spending £20m a year on digital radio services.
But they argue shareholders will withdraw support for that investment unless
a cut-off date is named.

John Myers, chief executive of GMG Radio, which broadcasts the Saga and
Smooth stations, believes the move should happen as early as 2015.

But he conceded that it was a politically sensitive decision. "We are being
held up by a lack of vision from ministers. "

While digital TV has had powerful champions in BSkyB and Freeview, only 16
per cent of radio listening is via a digital platform. These include DAB,
which is broadcast through aerials, the internet, and radio over the TV.

The BBC is not in a hurry to name a date. It will tell Ofcom's consultation
on the future of radio that it wants a cross industry working party, and a
review in 2010.

Chrysalis Group is finalising the £170m sale of its radio stations Heart,
Galaxy and LBC to financier Michael Tabor. An announcement could come
tomorrow.

Chief executive Richard Huntingford is expected to announce his resignation,
after a handover period. He will receive a bonus estimated at around £1.5m
for completing the sale. Chairman Chris Wright will stay on to lead the rump
of the company, a music publishing business valued at £105m .

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/06/24/cnradio124.xml




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