Ofcom, the communications regulator, has proposed relaxing and simplifying the rules governing radio consolidation to pave the way for further deals in the sector and to help commercial stations to compete with the BBC.

“You need a degree in statistics to work out who can buy what. More transparency is needed,” Peter Davies, director of radio at Ofcom, said. His comments came as part of Ofcom’s Future of Radio consultation, which yesterday saw the regulator set out a series of reforms.

There is a widespread belief in the industry that if commercial radio is to flourish then there can only be two commercial players. However, Ofcom believes further consolidation will only be achieved if the Government simplifies current ownership rules.

Ofcom said it was proposing to relax the local content requirements for commercial radio operators to a minimum of ten hours a day, in response to the mounting market pressures faced by the sector. Mr Davies said: “Stations could broadcast three hours of national drivetime shows during the day if they wanted to.”

Ofcom is also recommending that smaller stations should be able to share more locally made programming. It said stations broadcasting in areas inhabited by fewer than 250,000 people should be able to share six hours of local programming a day with stations in neighbouring towns.

Outside of locally made programming requirements, stations may choose to broadcast network programming for a maximum of three hours a day during weekdays in day time and more at weekends. “We believe these proposals could save the commercial radio industry a minimum of £11 million a year,” Mr Davies said.

The commercial radio sector has so far welcomed Ofcom’s proposals. Andrew Harrison, chief executive of commercial radio body RadioCentre, said: “On first inspection, it would seem Ofcom has listened to the six main points raised in our consultation response. We look forward to understanding the full detail in due course.”

It was also announced yesterday by the Department for Culture Media and Sport that a digital radio working group would be set up to assess the barriers to growth of digital radio.

Ed Richards, the chief execuitve of Ofcom, said: “Our research shows localness is important and we believe it should be protected. We are confident our proposals strike the right balance between easing financial pressures and safeguarding listeners’ interests.”

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