Tessa Jowell's speech to the RadioCentre, 24 January 2007
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"This is my first opportunity to talk to you as an industry since the RadioCentre was formed last year to provide a single vision for shaping the future of commercial radio in the UK.
And to be better able to support and represent this sector as it faces the challenges of the new digital environment.
I want to talk about those challenges and what they mean for all of us – as Government, regulators and industry.
And how we ensure that the very best qualities of particularly local radio continue to flourish in the more fragmented and complex digital environment.
Radio can be a very powerful tool.
Here in the UK local radio provides invaluable local services that are both enjoyed by and important to their local communities.
Just before Christmas, for example, the tragic events in Ipswich in Suffolk created a terrifying environment for local women.
The local radio station, Town 102, made an immediate response.
It implemented a 24 hour live local news service and extended phone-in shows to deal with listeners’ anxieties.
The station also handed out 500 personal attack alarms to local women.
In less traumatic circumstances, becoming involved in local activities like sports is the currency of local stations up and down the country.
Take Star Radio in North Somerset, where a presenter coaches the local youth team and local children provide a pre-match report each Saturday.
Indeed, it is this unique relationship between radio broadcasters and their listeners - whether national, local, or community - that makes radio so special.
And as we move into a digital world this relationship may become more rather than less important.
Sales of DAB radios have now exceeded 4 million sets - with forecasts suggesting that half of all households will have DAB by 2010.
In addition, coverage continues to increase and, with the release of extra spectrum more analogue stations have the opportunity to broadcast digitally.
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For some of the smaller local stations DAB will not be a practical means of migrating to digital, and the industry, as a whole, will increasingly need to consider how other technologies can complete the digital radio map.
And as most listeners care more about high quality services than platforms, the challenge for the radio industry will be to ensure listeners can move seamlessly between these differing technologies.
In turn the Government will need to continue to work with the radio industry to help remove the existing barriers to the growth of digital radio. Whether or not this will result in a switchover for radio, as has been the case for television, it is perhaps still too early to tell. However, we will keep this matter under review.
Indeed, the Government and regulators also have a role in the maintenance of a strong radio sector.
We will examine closely the findings of the Ofcom reviews when they become available later this year and consider them alongside the need for future legislation.
In any case, the Government will continue to monitor our legislative and regulatory regimes to ensure that they remain appropriate and effective.
Last year, for example, we removed restrictions to allow television to be carried on a DAB multiplex for the first time.
Allowing BT Movio and Virgin Mobile to offer the first DAB radio, mobile TV and telephony package.
Digital television has brought digital radio to non-DAB households.
These are all real life examples of the convergence that has been talked about for so long.
You will all no doubt be aware that last week I made an announcement to Parliament setting out the terms of the new BBC licence fee settlement.
We’ve had three years of intense and open debate on the future licence fee and the BBC Charter. And I would like to thank the radio sector for its contribution to these discussions.
I have been clear from the outset that the Government’s aim has been to see a strong, independent BBC.
That in setting the levels of the licence fee the BBC will need the resources necessary to meet the challenges of the digital age and to help bring the digital age to all.
However, although a strong BBC is important, so is a strong commercial sector.
I believe that the new Charter and Agreement has provided greater clarity about the way in which the BBC conducts its business.
For example, the Public Value Test will provide an open mechanism for considering new activities and major changes to existing services.
These are new mechanisms and it is important that the commercial sector has faith in the manner in which they are conducted. I would encourage those of you with concerns to raise them with the BBC Trust and Ofcom.
I believe we have a new Charter and licence fee settlement that gives the BBC the incentive to maximise its efficiency and provide the best value for money for licence fee payers.
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The sector faces falling revenues as a result of increased online advertising.
So we and Ofcom have to ensure that the regulatory environment continues to be responsive and flexible - to help stimulate growth and innovation, not stifle it.
Radio is robust. It has survived new media threats before.
Today nearly 90% of the population listen to radio every week – two thirds of them to commercial stations.
But the choices of media available to audiences are greater than ever before – driven by both broadband and broadcast digital platforms.
And the competitive pressures for audiences and revenue are immense.
What gives radio its USP is the uniquely intimate and loyal bond it establishes with its audiences.
So rather than being driven out by new technologies, radio finds its place within them,
Whether its podcasts on MP3 players, or radio delivered on mobile phones or digital television.
It will be radio’s challenge to ensure that it continues to be at the very heart of the new digital broadcasting landscape.
And the challenge for the Government and Ofcom is ensure that we keep the fitness for purpose of the regulatory environment constantly under review."
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More information is available from the RadioCentre website
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