Ofcom Announces Small-Scale DAB Success

Approximately 56% of awardees since 2021 started work on time

British regulator Ofcom has issued 115 small-scale DAB licenses across the UK since 2021, with 64 of these currently live.

According to Ofcom, so far 30.3% of the UK population can receive signals from small-scale DAB license holders. A progress report on October 22 in the program. The report came as the first awards of the sixth round of licenses were announced.

In six rounds of licensing, 212 applications were received for 167 areas and 115 licenses were issued. Applications were not made for only 25 license areas.

The Ofcom report noted that licenses are taking on average six months longer than expected to go live, with around half of licenses being launched in the last month of legal requirements to go live within 18 months of license issuance. Only 14 awardees failed to launch in the allotted 18 months.

(Relating to: “Thornbury Presenter Celebrates DAB Launch with Fresh Beeswax”)

The 64 small-scale multiplexes on the air carry 590 program services, 292 of which are unique. 65% of 292 are new to terrestrial radio. Some 104 program services are licensed as Community Digital Audio Programs, which require operators to meet certain community objectives both on and off-air.

Britain’s small-scale DAB program is designed to bring grassroots community broadcasters, specialist music stations and services to minorities and other underserved populations into local broadcasts.

Forty-three percent of unique stations offer local services, both commercial and community; 29% are specialist or themed music stations; 17% target minority ethnic or faith communities; and 9.5% are lifestyle stations.

Ofcom said that while examining the reasons why the 14 awardees were unable to launch, six of the license winners determined that market conditions had changed since their application, making the multiplex financially unsustainable. Other award winners, especially those dependent on grants and donations, were unable to raise the necessary funds in time.

Ofcom noted that it did not have the power to extend the 18-month statutory period set by Parliament for the launch. He also noted that such a deadline serves as a reasonable incentive to ensure awardees start on time.

Ofcom also noted that two licensees that were operational on time went dark when their joint owners went bankrupt. Both licenses have since been transferred to new operators and one of the multiplexes has returned to broadcasting.

Regarding the application process, Ofcom noted that almost all applications must make changes to their technical plans from the time the license is granted until the multiplex is operational. Most of these changes concern the planned and actual transmission area, resulting in slightly less (2%) coverage of service areas than envisaged in the license.

Taking all these findings into account, Ofcom considers the process used to advertise and reward small-scale DAB licenses to be largely a success. The regulator said this provides a route to digital radio for small community broadcasters and increases the range of programs available to listeners.

Ofcom plans to advertise a seventh round of small-scale DAB licenses in late 2024 or early 2025, followed by a final round of eight in the first half of 2025. Additional small-scale multiplex licenses may be advertised beyond the eighth round, including re-advertising licences. For areas that were not awarded in previous rounds.

Regarding the possibility of additional local DAB multiplex or FM license allocations, Ofcom said it sees greater benefits to the public from completing the small-scale DAB licensing process for now. However, he did not rule out the possibility of other types of licenses being considered after the eighth round is completed.