[comradio-l] Digital switchover needs greater clarity, say Lords - The Guardian 29/03/10

[CMA-L]

The government needs to put in place an FM radio scrappage scheme and
a fund to help poorer people switch to digital radio or face a public
backlash over its plans for the national switchover in 2015, according
to an influential committee of peers.

The Lords communications committee said there was "public confusion
and industry uncertainty" over the switchover. Consumers are still
buying analogue radios owing to the lack of public information about
the government's plans for digital radio. Car manufacturers are still
fitting vehicles with FM radios despite the fact that in a few years'
time they will only be able to receive local and community radio.

"We recommend an early and extensive information campaign to publicise
the government's digital radio policy, its rationale and its
implications for listeners," says the report on the digital switchover
of radio and TV, published today.

The government's plans for the digital switchover of radio are working
their way through parliament as part of the digital economy bill,
which looks likely to become law in the pre-election wash-up.

The committee reckons there will be as many as 100m radios that are no
longer required once digital switchover has occurred – though many
people may decide to hold onto their old radios to listen to the local
and community FM stations that will spring up once the national
stations have moved to digital.

The committee warned that many consumers face having to buy a new
radio and are likely to be very annoyed when told they will have to
dump a perfectly serviceable FM set.

"First, the government must ensure that advice goes to retailers and
the public that when purchasing radios, consumers should purchase sets
that include a digital tuner. This will prevent the problem getting
worse," the report stressed. "Second, the government should encourage
the industry to devise a sensible scrappage scheme, recognising that
the industry, manufacturers and retailers, will benefit heavily from
the new sales generated by digital switchover."

The committee wants poorer radio listeners to be given financial
assistance to help them get new digital sets with funding from the
scheme from general taxation rather than the BBC licence fee, which
has been used to fund a similar help scheme for digital TV. "Virtually
all the witnesses who gave evidence to the Committee spoke of the need
for greater clarity of policy in digital radio switchover," said the
committee's chairman Lord Fowler.

"In particular the public are not being told what radio switchover
will mean for them. Millions of FM/analogue radios will become largely
redundant. Millions of car owners will have to fit converters to
receive a digital service. It is urgent that the government now settle
policy and in addition step up their efforts to inform the public.
There is a danger of a public backlash if this is not done."

Last year, about 90% of the UK population listened to radio every week
with average listening running at 22 hours, according to regulator
Ofcom. Almost two-thirds of listening takes place at home with 18% in
cars – where the vast majority of listening is analogue and most of it
is of FM stations.

Last year, 66% of all listening was analogue, 21% digital – half on
DAB and half through PCs - and 13% unspecified. In the digital Britain
report the government admitted that at current levels of take-up, only
half the radio enjoying public are likely to be digital listener by
2013. Based on recent growth, however, the House of Lords thinks not
even that figure will be reached.

The peers noted that so far the switchover to digital TV "is running
to time" – though only one major urban area has so far been switched.

The report was welcomed by Scott Taunton, managing director of UTV
Media which runs 13 local radio stations, as well as talkSPORT. "The
peers have identified the very serious ongoing obstacles to digital
radio switchover in the UK.

"Next week, the government plans to force through legislation that
would set the switchover in motion as early as 2015. However, today's
report shows that the consumer case for switchover has still not been
made and that the plans could have a significant adverse impact on
local radio stations."

"Before passing the Digital Economy Bill, it is crucial that the
government acts to ensure that digital radio switchover will not occur
unless it is driven by the listener, and that local commercial radio
stations remaining on FM will not be left to wither on the vine."

Source: http://www.guardian.co.uk/media/2010/mar/29/digital-radio-switchover-scrappage

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