Radio station gives back FM licence

Stroud-based radio station Star 107.9 is to make the radical move of relinquishing its FM licence in protest of the way smaller stations are regulated.

Media firm UKRD, which owns the Gloucestershire operation, confirmed today that it will cease broadcasting at the end of this month.

Chief executive of UKRD, William Rogers, said that the company has taken the move, a first for the industry, as the station has failed to trade profitably.

Rogers said: "The market is very small, and we were simply consistently pouring money into supporting the losses of the radio station."

Earlier this year UKRD requested changes to the way its licence could be used, by co-locating and programme sharing with its Star 107.5 service in Cheltenham.

Ofcom agreed to the co-location but not the programme sharing, despite UKRD stating it would provide sufficient local content to ensure those in the Stroud area were provided with a local service.

"There are dozens and dozens of loss making stations in this country that need to have a greater level of support, assistance and flexibility in terms of their regulatory obligations to make them work. What we've tried to do by deciding to hand this licence back is open up a discussion," Rogers added.

A spokesman for Ofcom said: "This is a commercial business decision for the radio station itself. However, Ofcom is naturally disappointed that UKRD have decided to close Star 107.9 in Stroud."

Ofcom said that it is aware of the pressures facing all local radio stations, particularly small stations, and is in the process of preparing a consultation, which will be published in early 2007.

The regulator added that a decision has not yet been made over what to do with Star's licence.