The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Commercial radio stations remain locked on collision course with their regulator over plans that could force some to change their broadcast frequencies and threaten investment in their brand.

The Utilities Regulation and Competition Authority (URCA), in its revised consultation on 'Technical Standards for FM Broadcasting in The Bahamas', shows no indication of budging from its initial proposal that requires a "minimum" 800 kilohertz (kHz) of spectrum space between New Providence radio stations to minimise signal interference.

The proposal produced a fierce backlash when unveiled in the first 'Technical Standards' consultation, but URCA has done little to modify its position on this or the likelihood that it will force some radio stations to move broadcast frequencies if the regulatory framework is approved as is.

The regulator, in the latest consultation document issued on Friday, concedes that such "a requirement to migrate" would jeopardise the multi-million dollar investment some radio stations have made in developing their brand equity.

Yet it suggests that such concerns are outweighed by the need to bring order to the market and reduce "potential harmful interference" between the signals of different New Providence-based radio stations.

Arguing that broadcast frequency spacing was "less than optimal" in the nation's capital, URCA said its plan was consistent with the Communications Act-imposed mandate to ensure radio spectrum is managed and used efficiently.

Recalling the first, withdrawn proposal, which appears to have changed little, URCA said: "URCA signalled its intent to standardise channel spacing for The Bahamas as a whole, but was cognisant that, due to the number of existing radio broadcasters in New Providence, adjustments to FM band frequencies issued by URCA to FM radio broadcasters in New Providence would be necessary.

"URCA stated that consequential to its technical investigations and field trials of the FM band, adjustments to FM band frequencies as issued by URCA to FM radio broadcasters in New Providence would require the migration of certain FM radio broadcast stations from the existing frequency from which they now broadcast/transmit."

The regulator's latest consultation acknowledges "the potential harm" this would cause to well-established radio stations that have built up loyal listener followings who know precisely where to find them on the dial.

"Regarding potential harm to radio broadcast stations in New Providence, URCA was particularly mindful of critical issues specific to radio broadcast stations that would be consequential to a requirement to migrate," the consultation paper says. "URCA is also cognisant that radio stations have expended significant resources on product branding, 'goodwill' and the general recognition by the public of the radio station.

"URCA is further aware that radio stations affected by a requirement to migrate would realise a cost to change trademarks, stationery, logos, business paraphernalia and other related material. The cost for radio stations to migrate to another frequency must therefore be considered against any resulting benefit consequential to the proposed migration."

URCA's latest effort admitted the "migration" proposal ran into heavy resistance from radio stations on the first consultation, but said the opposition was based on self-interest and "the commercial interest of radio stations as opposed to technical reasons that would militate against the objective of achieving spectrum efficiency and the potential reduction of harmful interference in the FM radio band".

Signalling its intent to press on with 'standardised spacing' and forced movement of stations' broadcast frequencies, the regulator added: "URCA believes that the preferred approach to the reduction of potential harmful interference between FM radio stations in New Providence may be achieved through compliance by radio broadcast stations to the proposed FM radio technical standards."

The Tribune Media Group (TMG), the parent company of this newspaper and five FM radio stations - 100 Jamz, KISS FM, Joy FM, Y98.7 FM and Classical FM - previously warned it was ready to launch a Judicial Review challenge to URCA's proposals in the Supreme Court should it proceed with the first consultation's proposals.

In its initial response to URCA, Tribune Radio Ltd (TRL) argued that its stations - and those of other operators - were effectively being made to pay for URCA's past mismanagement of the commercial radio industry through the issuance of an unsustainable number of licences.

Its research showed that the Bahamas has 47 radio station licences for a 377,374-strong population, translating into one broadcaster for every 8.029 inhabitants. Barbados, by contrast, with a 287,562-strong population has just five radio stations for a ratio of 57,512 inhabitants per broadcaster.

The population-to-broadcaster ratio for Trinidad and Jamaica was pegged at 38,074 and 79,853, respectively, with both nations having fewer radio stations than the Bahamas at 35 and 34. The TRL review found that, out of nine markets in the Caribbean, UK and US, the Bahamas was the only one that is 'unsustainable' because it is oversaturated with radio stations.

"URCA has granted an excessive number of licences. It seems that the URCA wants to 'fill every slot' and force changes such that legacy operations are damaged, total interference is actually increased, and the safety of Bahamians is compromised, both by proximity to non-ionizing RF radiation from broadcast operations and a weakening of communications systems and signal strength necessary for good communication - particularly in time of emergency," TRL's response to the first consultation read.

"The proposed standards, and URCA's past actions in proliferating licences, fail to address the proprietary rights of our broadcast frequencies and the millions that have been invested in the branding, good will and imaging of these frequencies, and the limits of the market/population size."

TRL's feedback continued: "Standardising future channel spacings may make sense. A retroactive reshuffling of stations to accommodate retroactive channel spacings does not make sense and fails to recognise a broadcaster's established real property right in relation to its frequency.

"Stations develop millions of dollars on branding, goodwill and marketing, and instill upon listeners the various benefits of going to a particular place on the dial Listeners know where to go for music, news, severe weather reports and emergency communications. Moving existing (legacy) stations could cost lives in an emergency when seconds count."

Market oversaturation was a key factor behind the recent dispute involving the takeover of the former ZSR Sports Radio by Sebas Bastian's Paramount Systems. URCA, recognising there are too many players in the industry, had imposed a moratorium on issuing new licences, thereby forcing Paramount Systems to acquire an existing station.

URCA's latest consultation, in coded, guarded language, effectively admits blame for issuing too many radio licences at a time when the sector's regulatory framework was inadequate.

"URCA noted in the first consultation that the channel spacing of the frequencies in the FM band in the Bahamas has developed into what can best be described as an ad hoc manner," the regulator admitted.

"This was due in large measure to the absence of established technical standards for FM radio broadcasting specific to the Bahamas at the time when URCA was given responsibility for the FM broadcasting industry, but was required to issue radio frequencies to FM radio broadcasters." URCA does not say who, or what, "required" it to issue so many licences.

"On the island of New Providence, with its geographical dimensions of 21 miles long by seven miles wide, establishing distance separation for frequency assignments and transmission stations that were already in operation to co-exist with new radio stations presented peculiar challenges," the regulator said.

"URCA nevertheless endeavoured to issue such frequencies in a manner that would minimise harmful interference between FM radio broadcasters."

TRL, in its first consultation, argued that instead of penalising successful operators URCA should free up spectrum by revoking the licences of those who are insolvent or have not paid their Communications Act fees.

"The market is oversaturated and is now completely unsustainable," TRL warned. "If URCA focused on the 20 or more licensees that we have been informed are technically insolvent; revoke licensees that have not paid all of their fees as per the Act; there would be less interference, loads of frequency spectrum would open up. The added benefit would be a large reduction in (substandard) broadcasting quality."