The regulator seems ready to address complaints by radio companies that the amount of local content they are required to produce, and restrictions on simulcasting a service to more than one licence area or co-locating studios, makes operating small stations uneconomic.
Ofcom's document suggests: "There is a question as to whether current formats require too much local material to be provided. Perhaps Ofcom should simply require a minimum amount of local material from each station to secure public policy goals and let the market decide on provision over and above this minimum."
Ofcom has indicated it is also considering relaxing radio ownership rules. Currently, owners may not gain a monopoly of coverage in local areas, ensuring audiences can access a broad range of news output.
News of possible format change was welcomed by William Rogers, chief executive of UKRD, which handed back its Stroud licence this year, claiming restrictions made the station "uneconomic".
"I have to say this discussion document is not only a welcome development, but indicates a genuine and positive approach on the part of Ofcom to try and address some of the serious problems we face as an industry," he said.
Responses to the document must be with Ofcom by 14 December.
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