Ofcom may reject plan for new Scottish BBC channel
THE BBC’s plans for a new TV channel for Scotland face being thrown into disarray by a major review by the broadcasting regulator Ofcom.
Ofcom has announced it is to subject the plans for the new digital channel to a six-month analysis, or BBC Competition Assessment (BCA), and will deliver its verdict in July.
The decision will come only months before the £32 million channel, to be based at Pacific Quay in Glasgow is due to begin broadcasting daily on a new digital platform.
New uncertainty over the decision could affect the planning for the new service, experts said last night.
Ofcom said, in a letter to the corporation, it was concerned with aspects of the BBC Scotland plan, which had the potential to harm “fair and effective” competition from other media.
It also said the BBC could have looked at some aspects of the plan and its impact on journalism in Scotland “in greater detail”.
The BBC announced proposals for the new channel in February last year, saying it would hire 80 journalists for the service.
Last night a spokesman said hiring was still continuing.
However Professor John Cook, media expert at Glasgow Caledonian University, said that, given the timetable of the review, an autumn 2018 launch may now be “optimistic” for the new channel.
A complete cancellation of the plan by Ofcom is one of four potential outcomes of the BCA review, the regulator said. It could also approve the implementation of the scheme with modifications.
Ofcom said it would publish its final decision by July 11 but a provisional decision is expected in March or April.
The corporation’s own board found that the channel passed its Public Interest Test.
But Ofcom said while the new channel may enhance public value it also has the “potential to harm fair and effective competition”.
Market impacts of the new station include a potential to crowd out commercial broadcasters, notably STV.
It could also negatively affect other Scottish online news providers and Scottish newspapers.
Ofcom is also concerned about the impact of the broadcast of BBC 4 in Scotland, and what the new channel will mean for Scotlandonly programming on BBC 2.
Ian Small, the BBC’s head of public policy and corporate affairs, said Ofcom was “quite right” to look at the effect of the station of the market.
He added it would have been unusual for the channel to be “nodded through” by the regulator.
But Mr Small also admitted that Ofcom could advise against the channel.
He told BBC Scotland’s Newsdrive show: “I think it is a possibility, but without any sense of prejudging what the regulator will think, it is most likely they will come back and think it is a solid idea. I don’t think anything is inconceivable.”
Mr Cook agreed that cancellation of the plan was unlikely.
But he said that Ofcom may want the station to go ahead “with stipulations”. He added: “It was unlikely that Ofcom was just going to wave this through – they have the right to look at this proposal in more detail. I think generally, this is a fair decision.”
Ofcom said that its review will involve market research and economic analysis and will “take account of the stakeholders responses we have already received.”
The BBC said it had anticipated the review.
A spokesman added: “We welcome Ofcom’s decision to scrutinise the proposal for the new channel and we look forward to contributing to the consultation exercise.” A spokeswoman for STV said: “STV welcomes Ofcom’s response that a full Competition Assessment (BCA) of the BBC’s proposals should be undertaken.
“It is important that the potential impact of these is properly assessed.
“Following the conclusion of the BCA, we will be pleased to have the opportunity to contribute to the consultation process to ensure any development plans are appropriate to enhance services for audiences and benefit the creative industries sector in Scotland.”