response to strategic review of communications

Transcription

1 response to strategic review of communications July 2011

2 response to strategic review of communications 2 contents introduction 3 question 1 6 question 2 8 question 3 9 question 4 13 question 5 15 question 6 16

3 response to strategic review of communications 3 introduction The Radio Academy s Chief Executive, John Myers, wrote in a recent report commissioned by BBC Radio in May 2011: While the commercial sector has excellent national brands and many first class stations, it is also true that it is generally underfunded, understaffed and over regulated and operates the way it does out of a drive to ensure its very survival. Whilst his statement is clearly directed at UK commercial radio it remains equally true of the Isle of Man radio industry - an industry that faces many unique challenges as it serves our small Island community. The Island s radio industry is at a crossroads. Without a clear vision from the Communications Commission as to what services are sustainable, how they are to be transmitted to an island population of 80,000 and appropriate light touch regulation, the industry s very survival is questionable. It is, therefore, disappointing to see the consultation report devote so little effort to unique solutions for the Isle of Man, to dismiss its Isle of Man consultation exercise of early 2010 and to continue to seek solutions from other, far larger, territories. Additionally, the report includes serious misrepresentations of DAB technology. The Commission s consultation paper details how the Island s existing regulatory framework is currently constructed around three main aims and Manx Radio argues the Commission s first aim is misguided and does not meet the will of Tynwald. As a consequence it should be amended so that the Commission is charged to ensure the provision of a sustainable range of services that would meet public demand. The Commission s paper argues that the traditional model for regulating the audio and audiovisual content to the Island s consumers is no longer adequate or appropriate and suggests a light regulatory regime for new non-linear content with only backstop powers for the Commission. Manx Radio believes this is a dangerous precedent and suggests an alternative regime to regulate all content originating from the Isle of Man as the way to maintain the Island s reputation internationally. On the specific questions asked by the Communications Commission, Manx Radio has attempted to offer solutions that will work across the industry and provide the maximum amount of sustainable choice for the population of the Isle of Man. Manx Radio believes there should be specific provisions for radio station licence renewal subject to certain criteria:

4 response to strategic review of communications 4 The new licence supports the Commission s published vision for the future a document that currently does not exist but clearly should The incumbent has adhered to their station format during the full term of the station s previous licence Licensee s launch their service within the timeframe agreed at licence issue New services should not be considered for licensing unless they meet the Commission s vision for the Island nor should they be licensed if they plan to raise advertising or sponsorship income on-island as they would place existing operators under further untenable pressure. Manx Radio is supportive of the licensing of new, non-linear (on demand) services. However, caution is suggested as existing linear (broadcast) providers, are already offering embryonic non-linear services. The current blurring of the lines also suggests how difficult it will be to introduce different legislative frameworks for different content providers. Manx Radio questions the proposal to introduce a lighter touch regulatory regime to one emerging section of the industry simply to attract operators to the Isle of Man some of whom may be highly undesirable. The recent disclosures at News International should provide a cautionary backdrop to this concept of lighter regulation. The way forward, we suggest, is a single, straightforward, code of practice to operate across all content operators licensed, and/or producing content in the Isle of Man, including the press and internet providers. The code would also deal with interactive content and addressable elements across all media and provide a sound basis for consumer protection. This single code should then be regulated by the Communications Commission with the public service broadcaster further subject to the regulation of the Trust. A single Code of Practice is a practical solution for the Island to protect its reputation and offers a transparent system by which certain non-linear services, such as pornography, could be excluded from basing themselves on the Island. Manx Radio is disappointed, that following the station s robust defence of the Purpose Trust in its first response to the Commission s consultation document in January 2010, the Commission still fails to recognise the Trust s role as the appropriate body, as determined by Tynwald, to clarify the commitments of the public service broadcaster. Manx Radio believes the Commission s proposals are not appropriate for the Isle of Man and would, if adopted, make the position of the Trust untenable and undermine the will of Tynwald. Furthermore, the Trust s role to keep Manx Radio at arm s length from Government, would be undermined by the Commission s proposals. Manx Radio also argues it is essential the Commission has a clear understanding of the revenue models proposed by non-linear licensees. If their funding is to be wholly or even partially advertising or sponsorship based, and the company anticipated raising some of its revenues on the Isle of Man, this would impact on existing Island media operators.

5 response to strategic review of communications 5 Manx Radio is concerned that the Perspective report includes a serious misrepresentation of DAB technology and believes this section of its report is unsuitable as a basis for making informed decisions for future transmission solutions for the Island. Furthermore, the Communications Commission s suggested policy of monitoring developments in digital radio is inappropriate for the Island. It takes no account of the Island s specific future requirements or of the state of the Island s transmission infrastructure, does not inform readers of the high level talks taking place between the UK Government, the BBC and the commercial radio sector regarding their plans to roll-out DAB to 90% of the UK population between 2013/17 and does not appear to suggest the Commission is keen to find a suitable transmission system to meet the Island s particular broadcast needs. Manx Radio believes the Communications Commission should already be in discussion with the BBC to ensure the Island is represented in these plans. Manx Radio, following detailed analysis of the Island situation, believes the digital solution lies with DAB or DAB+ transmitted simultaneously on the same transmission infrastructure. The report of the Select Committee of Tynwald on the Television Licence Fee, published in July 2011, recommended: That, subject to the continuing progression of DAB as a widely used platform, the BBC should support the introduction of a DAB multiplex to carry Manx Radio and other Manx stations. Manx Radio proposes the Isle of Man Communications Commission funds a technical report to identify the Island s infrastructure requirements to deliver DAB and, or, DAB+ services. The report will then form the basis for informed discussion regarding DAB for the Island and its suitability, and will enable the Commission to guide Government in its negotiation with the BBC and other interested parties, as proposed by the Select Committee.

6 response to strategic review of communications 6 question 1- Do you agree that the Communications Commission should be given specific provisions to renew existing licences at the end of their term, subject to analysis of the market and it being satisfied that consumers have an appropriate range of services available to them? Yes, however, we discuss below some additional criteria the Commission should consider. Licensing regimes normally provide for license renewal provided licensees have met the terms of their licence for the duration of their license. It appears incongruous that the Isle of Man legislation does not allow for licence renewal for radio broadcasters. Pivotal to Manx Radio s support for the introduction of a licence renewal process is that three additional criteria are met by the licensees: 1. The license issued to the licensee meets the Communications Commissions vision for broadcasting on the Island a document that should be prepared, following consultation with the industry, and published by the Commission 2. The licensee s format and its target audience has not been amended without the Communications Commission s approval during the term of the operator s existing licence (see below) 3. Station launch must have taken place within the agreed launch time as stated in the licence Manx Radio believes adoption of these criteria is essential to sustain the radio industry on the Island. The Isle of Man is a small territory with, according to the 2006 census, a resident population of only 80,058. More telling, within the parameters of radio audience measurement, is that the total survey area (TSA) of the Isle of Man is only 67,700 (according to RAJAR in Q1 2011) as they only take account of residents over the age of 15. The Darwin report, the most recent broadcasting vision for the Isle of Man, was unanimously approved by Tynwald. It advocated that there was only room on the Island for one or at most two commercial analogue radio services. The Isle of White, population 132,731, has one commercial radio station and Vectis Radio, an online internet radio station dedicated to the Island. Anglesey, population 66,829, has one radio station, Heart, serving both Anglesey and Gwynedd (total population 118,800) and much of their output is syndicated across the Heart group of stations, thereby reducing its operating costs. The Isle of Man currently has four licensed and three operational radio stations - Manx Radio, Energy FM, 3FM and IMIB serving a TSA of 67,700! In our previous submission to the Communications Commission, Manx Radio clearly demonstrated the financial impact the launch of new stations had on incumbents and argued that the sector was currently unsustainable. The recent worldwide financial situation and the reduction in the Island s VAT receipts have made the situation even more critical.

7 response to strategic review of communications 7 It is, therefore, essential that the Communications Commission consults with interested parties and publishes a vision for the Island so that: 1. Licensees can plan for the future 2. Potential new licensees know what additional services would be considered for licensing by the Commission 3. There is acknowledgement that a community of 80,000 people can only support a finite number of broadcasters dependent on advertising or sponsorship revenue No licensee should be allowed to amend their station format at any time during the full term of their existing license without written Communications Commission approval following an impact assessment by the Commission. This is to ensure that the Island does not end up with all licensed stations chasing the same audience leading to the reduction of programming choice for listeners. A licence should also be withdrawn should the operator be unable to launch within the agreed launch timeframe. Manx Radio believes any new services proposed for licensing within the Commission s vision for the Island should, not only meet the four measures already specified in the Broadcasting (Amendment) Act 2007, but additionally: 1. Measure (a) should be strengthened to ensure the applicant will not be dependent on advertising or sponsorship revenues for their sustainability 2. A new measure should be introduced to ensure the application fully meets the Communications Commission s current published vision for radio on the Isle of Man 3. Plans for infrastructure investment over the term of the licence should be fully scrutinised and monitored throughout the period of the licence Furthermore, no application for a new licence should be considered if it does not meet the Communication Commission s vision for Island radio communications. Finally, suggestions are made in both the consultant s report and in the Commission s question that consumers should have an appropriate range of services available to them. Tynwald was very clear at the time of the Athol Radio (3FM debate) that over-licensing of radio broadcasters would undoubtedly undermine Manx Radio s ability to survive and could well result in further claims for additional financial support. The politicians argued for more stringent checks in the forthcoming Broadcasting Act to ensure that extensive checks were carried out by the Commission prior to any further licensing. Manx Radio believes a small community can only support a finite number of commercial radio stations. Furthermore, there appears to be no overriding urge by residents for a range of radio services. This is because the community is well served with services from the BBC, the UK commercial sector, RTÉ, and a myriad of radio stations readily available over the internet and Sky TV.

8 response to strategic review of communications 8 question 2 - Do you agree that the Commission should have specific powers to grant new licences or authorisations for linear and non-linear audiovisual services? Manx Radio is supportive of the creation of new industry sectors on the Isle of Man. However, there are three issues that need to be addressed before any non-linear (on demand) service licenses are issued: 1. A clear definition of exactly what a linear and a non-linear service really is 2. An understanding of the primary target audience for each service provider - the age of user and how many Island users the service expects to attract 3. An understanding of the revenue model is it to be advertising or subscription funded and whether any funds are to raised on-island Over recent years the Isle of Man has witnessed the number of on-island businesses dependent on advertising revenue for survival, increase dramatically. In 2003 there were 5 and a fledgling Energy FM. Today that number has increased to 10, but it is difficult to see that the advertising market has grown in a measurable way to support the new business. What has happened is that existing businesses have found their incomes squeezed and they are unable to invest in their future. Manx Radio has provided concrete evidence of this situation in recent annual reports. It is, therefore, paramount that the Communications Commission are not empowered to licence non-linear businesses whose business models rely on any Island based advertising unless they are subject to the same market impact criteria already in place in the Broadcasting (Amendment) Act As new technologies emerge, working practices and business opportunities will drive existing Island media businesses to amend the way they produce and deliver content. At Manx Radio, for example, we are already producing some content specifically for On Demand consumers. Some of this will reach the airwaves whilst some may not. It does show, however, how the lines between linear and non-linear are already beginning to blur and safeguards must be put in place to ensure that revenue models of existing linear providers are not completely undermined by the introduction of a further business centre. The consultation paper notes that a reformed Isle of Man regulatory framework could liberate and encourage the provision of new services, both for the benefit of consumers and for the betterment of citizens on the Island. The changes we (the Commission) have proposed should result in a framework that encourages investment in the infrastructure, and establishes a more stable basis on which new service providers can develop products that consumers will want. It should be clearly understood that the existing regulatory framework for radio broadcasters, which is highly prescribed, has been unable to encourage investment in broadcast infrastructure because too many stations have been licensed for the Island s population. The survival of the incumbent Island media operators in a less prescribed environment is highly questionable.

9 response to strategic review of communications 9 question 3 - Do you agree that specific legal provision should be made to clarify the commitments of the Public Service Broadcaster? No, because there is already a provision in the act for the Commission to periodically review the Public Service Broadcaster and there are sufficient other checks as detailed below. In December 2002 the Darwin report, investigating the future role, structure and funding of Manx Radio made a number of recommendations including a New and enhanced role for Trustees. Following the Tynwald debate a working party was set up to, among other tasks, propose a future Charter for the nation s public service broadcaster. This resulted in the formation of a Purpose Trust as agreed by Tynwald and it has become an effective body to ensure that: Policy decisions affecting the utilisation of public funds are appropriate Manx Radio is kept at arm s length from Government to ensure there is no Government intervention The Promise of Performance is published to clearly indicate the breadth of services and the quantity of services to be expected by the public Services offered by the PSB are appropriate and quality standards are maintained The broadcaster operates its competitions, and dealings with the public in a fair way and with integrity The terms of our licence are adhered to It acts as an independent sounding board for the Manx Radio executive Furthermore, the role and effectiveness of the Trust is itself scrutinised by the government appointed Enforcer. Both the original Communications Commission report and the most recent report prepared for the Commission by Perspective have failed to acknowledge the existence of the Radio Manx Purpose Trust even though Manx Radio s submission to the first stage of the consultation went to great lengths to point out the role of the Trust as determined by Tynwald. Further specific legal provision makes a nonsense of the will of Tynwald and would, if adopted, make the position of the Trust untenable. It should also be remembered that the Communications Commission officers are government employees whilst the Trust is a body made up solely of members of the public specifically to keep the Public Service Broadcaster at arms length from Government. In the UK the Memorandum of Understanding published between the Office of Communications (Ofcom) and the BBC Trust in March 2007 indicates a robust scope and purpose between the two organisations. It is a model that works well within a framework where there is a public service broadcaster, a Trust and a regulator, and clearly identifies the different authorities and functions the various bodies have.

10 response to strategic review of communications 10 However, the need for such a MoU for a 2m per annum organisation is questionable and would probably be deemed unnecessary under any light touch regime. Manx Radio s shareholder is the Isle of Man Treasury. As a minimum we meet with Treasury on a quarterly basis to review budgets and funding. Additionally, they are present at our thrice annual audit committee meetings and at our AGM where their remit is to ensure the station s public funding is scrutinised and utilised in an appropriate manner. The Audit Committee comprises three non-executive directors, appointed by the Treasury. The Committee meet three times a year and its purpose is to ensure good corporate governance by overseeing, on behalf of the Manx Radio Board, the Company s legal, financial and regulatory responsibilities. Additionally, the Treasury are mindful of the station s obligation to trade fairly, they review this with the company from time to time and bring the government s financial directives to the station s attention as appropriate. Treasury are made aware of the station s new commercial products and of the income expected to be derived from new ventures. From time to time discussions take place on the impact a public service subvention might have in a commercial marketplace and reference is also made to relevant EU trading directives to ensure the partly government subsidised station is not operating in a way that could distort the marketplace. The Treasury is actively involved in the process of setting the annual subvention. The company is further audited by independent auditors on an annual basis and a report presented to Tynwald to include the audit report, director s report, Trust report and a compliance report from the Communications Commission. Where Manx Radio, and presumably the other broadcasters, feel inappropriate activities are being carried out by licensed broadcasters to distort competition in the marketplace, the offices of the Office of Fair Trading are available for adjudication. Manx Radio has used their offices on one occasion when it felt non-competitive trading activities were being utilised by another Island broadcaster. Additionally, the Communications Commission carries out the following duties: Licenses and regulates the content of programme services provided from places in the Isle of Man. All local broadcasters must comply with the Commission s Codes of Practice on programme content, advertising and sponsorship Promotes and regulates programmes made in Manx Gaelic Of further relevance in this context, the Broadcasting (Amendment) Act 2007 states; In the case of a licence granted under section 2(2)(c) to provide a public service broadcasting service, in addition to those conditions which may be included under subsection (1) of this section, the licence shall, if the licence is granted for a period

11 response to strategic review of communications 11 exceeding 10 years include conditions requiring the Commission to undertake a periodical review of the provision of the service at least every 10 years, against such criteria as the Commission may prescribe. John Myers, in a report commissioned by Tim Davie, Director of BBC Audio and Music to look at synergies within BBC Radio 1, Radio 2, IXtra and 6 Music in May 2011 had the following to say about how over-prescription impacted on the Corporation: The Service Licence, creates, in my opinion, a very detailed obligation on each network controller. The demands are diverse, costly, time consuming and prescriptive, not only as to the minimum provision levels for the expected service, but also in detailing its production and quality objectives. Clearly, there is a need for each service to have direction, but this does appear to be overly prescriptive. Radio 2, for example, has a specific obligation to air comedy, when BBC network radio as a whole more than adequately provides for this within its current output. Such duplication of output, not to mention the cost involved, may be preventing Radio 2 from diversifying into other programming areas that are not covered elsewhere, by either the BBC or the commercial sector. Whilst his comments are obviously directed at the specific operation of the BBC it clearly shows that over-regulation and over- prescription has a cost impact on that organisation. Here, on the Island, we must be mindful of the consequences of introducing additional layers of regulation and prescription. Even though it could be perceived as ensuring the public service broadcaster produces what the public wants, it would also prevent the broadcaster from reacting to changes, trends and even new Island events. It also makes it more difficult for the station to introduce new services as appropriate. Manx Radio is also concerned at the additional cost burden new regulation will place on the public service broadcaster. We also have concerns for the station s perceived independence if the Trust s role is undermined in the way the Commission proposes as we believe our listeners will not be easily convinced of the public service broadcaster s independence from Government. A solution, further developed under question 4, provides an opportunity for the Island to introduce appropriate regulation for all content providers on the Island and deserves careful consideration if the Commission is concerned about the Island maintaining its reputation for the future. To conclude, we believe there is already a robust and effective structure in place to: 1. Keep the broadcaster at arms length from the government through the Trust 2. Provide for robust regulation via the Communications Commission 3. Place the broadcaster under regular financial scrutiny from the Treasury and Audit Committee 4. Provide for the Communications Commission to undertake periodical reviews

12 response to strategic review of communications Check on the company s trading practices via the Office of Fair Trading and that additional legal provisions to clarify the commitments of the public service broadcaster are inappropriate.

13 response to strategic review of communications 13 question 4 - Do you agree that the Commission should encourage a self-regulatory approach to ensuring No. the adherence to a basic minimum of content standards in relation to non-broadcast (e.g. online, on-demand) material, with the Commission retaining backstop contingency powers? Events of recent weeks make it clear that a self-regulatory approach will inevitably come to haunt the Isle of Man and could, possibly, come to undermine the reputation the Nation has proudly built over many decades. It is imperative the Commission introduces a degree of regulation over all content emanating from the Isle of Man. Whilst a minimum standard of regulation may feel appropriate one day, it may not the next as can be seen with the self-regulation imposed on the UK s press via the Press Complaints Commission. Manx Radio is concerned at the Commission s proposal to agree different regulatory practices across the content industry dependent solely on the delivery platform of the content - even though daily advances in technology are already blurring those delivery platforms. The same story emanating in the Isle of Man and reported upon by Island journalists is already regulated in a myriad of different ways: Isle of Man Newspapers have taken their own decision to abide by the UK s Press Complaints Commission s (PCC) Code of Practice. They have also taken the decision that content published on their own website will also be subject to the PCC s Code of Practice Isleofman.com publish exclusively on the internet and are not subject to any regulation Manx Radio s broadcast output is regulated by the Communications Commission whereas our web content is not regulated at all, however, Manx Radio chooses to apply the Commission s guide to all our internet content, although our Facebook and Twitter social media pages are fully interactive and include public content The BBC s output across all media is regulated by the BBC Trust ITV s Isle of Man content, as broadcast in the UK, is regulated by the UK s Ofcom. However, material ITV reject for transmission in the UK also appears on a Manx Tube video-on-demand site that is unregulated So, it can be seen that content regulation is already in a mess and the Communications Commission is now suggesting a new self regulatory Code of Practice for non-linear content providers. The situation is further muddied as, Manx Radio for example, is already producing some nonlinear content for its website and iphone applications that are not broadcast via Manx Radio s radio transmitters. It is to be expected that this proportion of non-linear material will grow in the future. How is this content to be regulated by the existing Code of Practice for

14 response to strategic review of communications 14 radio stations or via the proposed new self-regulatory code? One thing is certain, the users of this content are unlikely to be able to differentiate whether it is linear or non-linear and even those that can today, are less likely to do so in the future. Observers of the UK are of a view that the days of the Press Complaints Commission are numbered. The way forward, we suggest, is a single, straightforward, Code of Practice to operate across all content operators be they linear or non-linear, be they licensed or unlicensed as long as they produce or distribute content from the Isle of Man. This code would also include the press and internet providers. The code would also deal with interactive content and addressable elements across all media and provide a sound basis for consumer protection. This single code should then be regulated by the Communications Commission with the public service broadcaster further subject to the regulation of the Radio Manx Trust. This is the only practical way for the Island to ensure its reputation will remain intact over time and is a transparent method by which certain non-linear services, such as pornography, can (if deemed appropriate) be excluded from basing themselves on the Island.

15 response to strategic review of communications 15 question 5 - Do you agree that the Isle of Man should adopt a policy of monitoring developments in digital radio, so that when a digital solution emerges that fits the needs of the Island s broadcasters and residents it can be cost-effectively implemented? Manx Radio does not believe that any of the three proposals put forward by the Communications Commission provide the right digital solution for the Isle of Man. Furthermore, Manx Radio believes the Perspective report includes a serious misrepresentation of the DAB technology. For example the report states: The number of DAB transmitters exceeds that for FM, whereas in fact, the number of DAB transmitters required will be significantly less than the equivalent number of FM transmitters to carry multiple services That because DAB broadcasts at twice the frequency of FM, reception is more difficult, whereas in fact, the frequency used for DAB is only marginally higher within the overall RF spectrum and, therefore, in practical situations this is not a material issue. Also a single frequency network benefits from a characteristic known as network gain that frequently improves reception DAB transmission is a more costly alternative to FM, whereas in fact, if the costs are divided across the number of services/channels carried, costs compare most favourably against current FM transmission systems In addition, the Island has some specific issues that need to be resolved. Currently Manx Radio broadcasts primarily on its network of FM transmitters which are owned by the Department of Home Affairs. All the transmitters and some of the antennae were replaced in 2010 and would be expected to have a 20 year useful life. Additionally, Manx Radio transmits on AM1368 (also owned by DHA) for 19 hours per day including alternative programming such as Radio TT, MGP, Southern 100 and political coverage of Tynwald and House of Keys Question Time. This is augmented by occasional RSL licences on FM when the AM service is not available for coverage. Energy FM and 3FM both transmit from their privately owned FM networks. There are listening black spots on all three FM networks and AM coverage, whilst good, includes adjacent coastal areas of Ireland, Northern Ireland, Scotland the North West of England and North Wales. AM is not really the most appropriate way to transmit to listeners today and the number and range of AM radios for sale on the Isle of Man is in decline. In addition, the AM transmitter is approaching replacement age and, additionally, circa 100,000 needs to be spent on maintenance of the AM mast in Foxdale. The following received in July 2011 is indicative of correspondence received at the station showing listener dissatisfaction to our current transmission arrangements for the Southern 100: Well done manx radio, again you pander to the MHK S, is the live house of keys that important, please put the bikes on AM service, now; please, please, what a debacle. A single transmission strategy for the Isle of Man, reducing the number of actual transmitters but improving reception and increasing the number of channels available for event

16 response to strategic review of communications 16 coverage, could prove to be the most cost effective option over time. The time is right to consider the delivery of existing and of any potential future services, to determine the most appropriate transmission system for the Island. The potential broadcasters on a new DAB or DAB+ service are: Manx Radio Energy FM 3FM In addition, capacity is required for the following occasional services: A motorsport channel to include Radio TT, Manx Grand Prix, Southern 100 etc A political service to provide for the proceedings of Tynwald, the House of Keys Question Time and with the capacity for development for the full proceedings of the House of Keys, Legislative Council and Committee hearings at an appropriate time A Manx language service broadcast at particular times of the day to reflect, nurture and stimulate the continuing growth of Manx Gaelic. Manx Radio and the BBC intend to launch an embryonic Manx language service in October 2011 DAB/DAB+ is an ideal solution for this scenario and provides capacity for future Island developments and for the transmission of existing non-island broadcasters, to offset costs, if required. Manx Radio s existing FM transmission infrastructure should last a further 20 years and the transmission systems of Energy FM and 3FM are probably serviceable for a further 10 years. So there are no short term issues regarding the supply of FM services to Manx residents. There is concern regarding the serviceability of the AM infrastructure and, imminently, a decision will need to be taken by Manx Radio and the Department of Home Affairs as to whether the replacement of the AM transmitter is a cost effective option to deliver the services currently available via the AM frequency. A new DAB service would be ideal for the transmission of these services not currently available via FM and this would be an ideal strategy to drive the take-up of DAB further in the Island. In June 2011 the UK regulator Ofcom published a consultation paper on the technical options for matching DAB coverage to existing FM coverage for national and large local stations across the UK. Ofcom was asked by the British Government to deliver this as part of the Digital Radio Action Plan and the work is now out to consultation before a final statement is published later in the year. This work provides a template on which informed decisions regarding digital roll-out can now be taken. The Isle of Man was not included in this work. In tandem with Ofcom s work over recent months the UK Government, BBC and Independent Radio have agreed in principle on how further digital radio roll-out is to be financed in the UK. This process was prompted by the absence of funding for local DAB in the BBC licence fee deal in October Since that time the industry has been working to explore all available options for releasing public funding to expand and operate the local

17 response to strategic review of communications 17 DAB network. These meetings have examined a range of issues, including a proposal to build out local DAB to 90% of the UK population (requiring around 150 transmitters and the build out of unlaunched muxes) between 2013 and 2017, followed by a further build out to FM equivalence for around a third of the UK. The precise cost is still being worked through with Government, BBC and among local multiplex operators with rollout contemplated between 2013 and Given that much of this build out, as well as subsequent phases, are not likely to be commercially viable it is anticipated the UK Government and BBC will meet the vast majority of such costs. The Government is seeking agreement to the principles of such a plan with a view to agreeing a Memorandum of Understanding by Autumn 2011 setting out the details of any agreement. None of this work has been carried out in the Isle of Man and, we believe, the Communications Commission, on behalf of the Manx Government, should be driving this work forward so that interested parties can begin to take meaningful decisions for the supply of broadcast services on the Island in the future. It is clear from all this work that there will be further roll-out of DAB in the UK and if we follow the Communications Commission s suggestion to merely adopt a policy of monitoring developments, the Isle of Man will be left well behind. The report of the Select Committee of Tynwald on the Television Licence Fee was published in July 2011 and recommended: That, subject to the continuing progression of DAB as a widely used platform, the BBC should support the introduction of a DAB multiplex to carry Manx Radio and other Manx stations. Manx Radio, following detailed analysis of the Island situation, believes the only digital solution is DAB or DAB+ transmitted simultaneously on the same transmission infrastructure. Manx Radio, therefore, proposes that the Communications Commission commissions a technical report to identify the broadcast infrastructure required on the Island (as published by Ofcom for the UK) to deliver services for the future. It should also identify the infrastructure requirements for DAB or DAB+ services across the Island. Furthermore, the Communications Commission should be entering into negotiations with the BBC now in order to ensure the Island is properly represented in these discussions.

18 response to strategic review of communications 18 question 6- Are there any other aspects of this consultation, the consultants report or the subject areas in general that you would like to comment on? Manx Radio is strongly of the opinion that the consultant s consultation documents have failed to identify and address Isle of Man issues preferring to quote readily available illustrations from elsewhere in the world. The documents feature various regulatory and digital solutions implemented in other jurisdictions, irrespective of the population of the jurisdiction, as a basis for precedents to meet unidentified Manx requirements. Furthermore, their views on DAB are misplaced and misleading and would not stand up under scrutiny. The consultants have also failed to look at the key issues facing the Island: 1. Sustainability of the existing content providers in the proposed new environment 2. The specific broadcast needs of the Isle of Man both today and in the future 3. The creation of Island legislation that is proportionate to the scale of the existing media businesses 4. The stated wishes of Tynwald. Indeed, there appears to be a dogged determination to create an environment that allows off-island broadcasters (new non-linear service providers) to thrive at the expense of those that serve the Island community. It is also disappointing to discover in the 3 rd Report: Key Audio and Audiovisual issues for the Isle of Man Communications Commission, that no recommendation submitted by Manx Radio as part of the initial consultation process has either been considered, developed or even discarded as unworkable. The result is a consultation document that leaves the reader unaware that any local operator s viewpoint has been considered in the preparation of the report and, as such, gives the reader little confidence that this is the most appropriate consultation document for the Isle of Man. Manx Radio urges the Communications Commission to consider the station s submissions. A copy of Manx Radio s original submission is attached for ease of reference.