MUMBAI: UK commercial radio criticised the BBC's plans to increase its local video output. The proposal had received criticism from other local media providers stating it will create unfair competition.

Under the BBC proposal, the corporation would invest ?68 million over five years in a network of 60 local websites to provide on-demand video news. The BBC's proposals were described as 'state intervention' and 'highly damaging to local media', in a press statement accompanying an audit of 233 commercial radio stations by RadioCentre.

The RadioCentre report further suggests that existing media with commercial radio stations providing an average of 22 news bulletins a day are suffice for regional audiences. The study also stressed the growth of commercial radio online with 93 per cent of commercial radio stations available live on the internet and 87 per cent of these containing local news on their websites.The audit further pointed out that penetration of radio stations into multimedia territory through their websites with blogs, video clips and live webcams is becoming increasingly popular.

RadioCentre chief executive Andrew Harrison comments, "This report makes it clear that commercial radio is a vital force for good in society, but particularly in local communities where stations serve audiences with a wide range of invaluable information, as well as supporting thousands of community events and organisations, and bolstering local talent through live and local music broadcasts."

In this context, the proposed introduction of a publicly funded BBC local video service at a cost of ?23 million pounds to the licence fee payer is not necessary. A state intervention of this nature would be highly damaging to local media markets which are naturally evolving to take account of changing consumer demands.