Broadcast 16th October 2000

	Listen to the interview with Michel Lobelle

Since Uganda decided to allow private companies to operate commercial radio stations in the early 1990s the airwaves are getting crowded.

If you include the BBC when you scan the FM band you can hear more than 40 services. The revenue from broadcasting is starting to attract groups from outside the country. The latest company testing on air in Kampala is the Radio One Group from Tanzania.

Michel Lobelle is the BBC's manager for broadcast strategy in Africa. From his office in Nairobi he told our reporter Russell Padmore that de-regulation of the airwaves in Uganda was leading to the development of pan-east African radio networks



"The first couple of commercial radio stations in Kampala started around 1994. Some international broadcasters came in - namely Radio France International, and the BBC in 1997. At that time, there were already more radio stations coming up - about two or three, but today of course we are talking 15 to 20 FM stations, so it has really blossomed."

We were starting to see a situation where there were dozens of radio stations opening up in Uganda - the latest development being the Radio One group from Tanzania seeing the opportunity to get a license and broadcast across the border. Could you see the situation where it is viable to see so many operators on air? Asked Russell Padmore?

"It think it will be. Do not forget that a lot of these radio stations have other business interests, so radio broadcasting is not really their main money earner. Newspaper groups for instance are beginning to launch radio stations - the Nation Group has launched a radio station in Nairobi, they have a share in the Monitor newspaper in Kampala - that newspaper will open a radio station within months.

"And the Radio One group in Tanzania, which is the main broadcaster in Da es Salaam, will open up a relay in Kampala as well as in Nairobi. So there is an east-African network which is beginning to happen with satellite distribution."

These radio stations have other business interests, so radio broadcasting is not really their main money earner. Michel Lobelle

Was there revenue to be made from advertising? Russell Padmore inquired, and did the business community see that competition in radio stations perhaps might force down the price of advertising?

"I think the major media groups with other interests have the means to sustain low returns for a few years. Smaller fish might have to stop trading. There have been casualties already, so I don’t think a market like Kampala will be able to sustain about 20 radio stations, although possibly more than ten."

Could we see more international advertisers coming to the radio services to place their commercials?

"It is possible, especially with the new networking in the three countries - Kenya, Uganda and Tanzania. It could become quite an attractive proposition."

"I think the main appeal is going to continue to be the cellular business so it is likely to be a company that is particularly focussed on cellular."

I do not think a market like Kampala will be able to sustain about 20 radio stations. Michel Lobelle