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Representing the Communication Services Industry 6 July 2007Ofcom BRIG The importance of business radio in the UK FCS Business Radio Group report Presentation.

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Presentation on theme: "Representing the Communication Services Industry 6 July 2007Ofcom BRIG The importance of business radio in the UK FCS Business Radio Group report Presentation."— Presentation transcript:

1 Representing the Communication Services Industry 6 July 2007Ofcom BRIG The importance of business radio in the UK FCS Business Radio Group report Presentation to the Ofcom BRIG 6 July 2007 Follow up to presentation on 13 March 2007

2 Representing the Communication Services Industry 6 July 2007Ofcom BRIG BR in the UK The problem The implications The dilemma The remedy

3 Representing the Communication Services Industry 6 July 2007Ofcom BRIG The problem Business radio Not high on the public agenda Value to the economy underrated Spectrum policies not always aligned to BR

4 Representing the Communication Services Industry 6 July 2007Ofcom BRIG Public agenda BR – not reported in Parliament or in the media Ofcom is introducing market led policies for spectrum management; it sees BR as a cottage industry in need of reform BR has always been there- the world is changing around it

5 Representing the Communication Services Industry 6 July 2007Ofcom BRIG Value to the economy underrated Key areas where BR provides essential support to organisations and businesses Health and safety Disaster recovery and business continuity Operational efficiency Dedicated bespoke services FCS case studies- none can function without BR and there is no alternative; BR provides social benefit as well as economic benefit

6 Representing the Communication Services Industry 6 July 2007Ofcom BRIG Economic value of BR FCS research shows: In the public sector the ratio of BR investment to organisation turnover approx 1:30 For a manufacturing plant that cannot operate without radio systems a £10k radio system supports £100 million plant Major construction project valued at £5 billion supported by a £2million radio system Leverage factor of BR is 1:30 to 1:2500 BR contribution to economy from the sector is £1-2 billion pa, but leveraged value is £ 30 billion upwards.

7 Representing the Communication Services Industry 6 July 2007Ofcom BRIG The implications The regulator does not see BR as a special case but the guinea pig for new spectrum policies Broadcasters have admin pricing of spectrum 14 years after BR Spectrum policy decisions impact sector viability Recent auction decisions – now spectrum in MHZ [suitable for Tetra] in hands of one company- and OFT is investigating the competition implications How can the companies and organisations that require BR services and certain access to spectrum in future continue?

8 Representing the Communication Services Industry 6 July 2007Ofcom BRIG The dilemma BR requires certain access to spectrum in future Ofcom has the single delivery mechanism of an auction The two are incompatible

9 Representing the Communication Services Industry 6 July 2007Ofcom BRIG The remedy Access to radio spectrum for business radio- UK spectrum policy EU- EP says spectrum management should facilitate the coexistence of different types of licensing models traditional administration and market based approaches. Ofcom consumer panel says Ofcom should think about a spectrum bank for socially beneficial services Ofcom consultation on PMSE- listened to vocal entertainment lobby and has given preferential treatment FCS says Ofcom should think more about its spectrum policy application to BR and refine it according to BR needs Safety of life, business efficiency and disaster recovery must be acknowledged as a special case and Ofcom’s spectrum allocation policies recognise this Look into a negotiated route for spectrum access for BR

10 Representing the Communication Services Industry 6 July 2007Ofcom BRIG Importance of Business Radio to the UK As FCS chairman Adrian Grilli says “When people are trapped in their cars in a motorway pile up what’s more important- getting footage in the evening news or life saving treatment of the injured?” Ofcom over to you.


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