Finnish Government Shuffles, Expands Commercial Radio Licenses

Michael Hedges - June 3, 2006

Publishing giant SanomaWSOY received two new radio licenses while MTV Media and SBS each lost one. The Transport and Communications Ministry issued six national and 47 local radio licenses for the five-year term beginning January 1, 2007.

“The government makes the decision, the Ministry makes the preparations for the decision and the regulator (Finnish Communications Regulation Authority - FICORA) enforces the rules set in the license,” said FICORA’s Merja Saari, explaining everything. Most licenses were renewed.

MTV Media keeps its Radio Nova national license but loses the regional Sävelradio license, a station they purchased less than one year ago. MTV3 and Radio Nova were sold in 2005 by Alma Media to Sweden’s Bonnier Group and investment house Proventus creating a powerful media machine. MTV3 is the highest rated commercial TV outlet and Radio Nova tops the commercial radio charts.

Rock and sports radio format seem to have little appeal to the Finnish government. The Radio City license was also not renewed. An application for a rock and sports station by MTV Media was also not approved. Radio City is one of seven licenses held by SBS Radio and is the oldest commercial radio license in Finland.

“The purpose of this is that all radio stations would not sound the same. The radio is not a music box. It is a medium for communication,” said Minister of Transport and Communication Susanna Huovinen, quoted in Helsingin Sanomat, owned by SanomaWSOY. “The local license holders are told to offer something for different types of audiences.”

SanomaWSOY’s electronic media division SWelcom will operate the two new nearly-national licenses. One will be programmed for women – Lady FM – and the other for men – Rock FM. In April, the Sanoma division, publisher of Helsingin Sanomat,  purchased Radio Helsinki, a free-form, no-playlist local station. The station features a popular call-in program called “Paskalista” or “Shit List” offering listeners a vote on the worst music.

The company also operates a news service for commercial radio and television stations in Finland. The Radio Helsinki license was renewed.

“SanomaWSOY's strategy is to be a multimedia player in Finland. The now received radio channel licenses supplement significantly our service and product portfolio. Internationally we will focus on magazine publishing, educational publishing, and press distribution,” said CEO Hannu Syrjänen, in a press release. In an investors presentation in March he indicated interest in radio broadcasting because of its stability.

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