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Pullout quote to follow… A N Other, Job TitleCompany, Day Month 200•Many voices, one world…Annual Review 2002/2003

AnnualR

eview2002/2003

Broadcasting in43 languages

MANY VOICES,

Shumë Zëra, Një Botë

Isi imwe, amajwi menshi

Muitas vozes, um mundo só

Un monde, un seul…tant de voix!

Sokféle hang, egy világ

,

Contents01 Our aims02 Chairman’s introduction04 Director’s overview08 Coverage of the Iraq crisis10 BBC Arabic12 Reconstruction of

Afghanistan – one year on15 Seventy years of BBC World

Service20 BBC World Service

new media21 BBC Monitoring24 BBC World Service Trust25 Looking forward – priorities

for 2003-06

28 Output and performancemeasures

32 BBC Board of Governors’World Service ConsultativeGroup Report

33 BBC World ServiceManagement Board 2002/03

34 Financial review 35 Financial statements 38 Statement of accounting

policies 40 Notes to the financial

statements 50 Reports on compliance

and regulatory matters 60 Further information

Front Cover ImageAfter 24 years under Saddam Hussein, Iraqis are facing an unpredictable future.The World Service remains committed to providing trusted news and informationin Arabic and English to the Iraqi people

1BBC World Service Annual Review 2002/2003

Our aims

To be the world’s best-known and most-respected voice ininternational broadcasting, thereby bringing benefit to Britain

To be the world’s first choice among internationalbroadcasters for authoritativeand impartial news andinformation, trusted for its accuracy, editorialindependence and expertise

To be a global hub for high-quality information and communication

Projecting Britain’s values of trustworthiness,openness, fair-dealing, creativity,enterprise and community

Providing a forum for the exchange of ideasacross cultural, linguistic and national boundaries

Promoting the Englishlanguage, learning and interest in a modern,contemporary Britain

Offering a showcase for British talentacross the world

2 BBC World Service Annual Review 2002/2003

Chairman’s introductionA beacon of independence

During the Iraq war, the BBC Arabic Service begana new daily debate programme, Nuqtat Hewar. Itoffered a forum for radio listeners and online usersto exchange opinions – a unique offer across theArab world.

The programme has received thousands of emailsand texts every day, allowing major global leaders,local politicians and ordinary Arabs to jointogether. This type of debate can really help toachieve greater understanding, openness anddialogue.

This is why in December 2002 we broughttogether our international services across radio,television and online, under the umbrella of thenew BBC World Service & Global News Divisionled by Mark Byford.

The division comprises World Service radio, ourinternational television channel, BBC World, andthe BBC’s international online services.

These services are available on three differentplatforms, but all share the same values ofindependence, impartiality, quality, accuracy,breadth and depth of agenda, expertise andeyewitness reportage.

With better co-ordination across all these services and under a strict fair-trading framework,we will maximise our potential editorially andachieve greater impact for the BBC brand amongaudiences around the world. By so doing, we will bring credit to Britain.

Gavyn DaviesBBC Chairman

They were par t of a season of specialprogrammes of considerable range and ambition.They showed that the BBC still has the capacity to fulfil a powerful role on the world stage, just as it has from its bir th in 1932.

This has been a momentous year for internationalbroadcasting. The war in Iraq has meant thatglobal news services have never been moreprominent or important. But the war alsodemonstrated that while the world is connectedtechnologically, it is far from connected in terms of mutual understanding.

This globalised world increases the scale ofinternational business and the specialisation of trade which could dramatically improve thestandard of living of all the world’s citizens.But it also increases the speed of social change,the potential for a rapid spread of bigotry andother bad ideas, and the impact with whichcultures can collide.

Fostering mutual understanding acrossinternational borders and cultural divides must be a key way forward.

The global news service of the BBC is one of onlya few organisations in the world well positioned to make a contribution to this healing process.

The challenge for BBC World Service is to makesense of what seems a confusing and contradictoryworld, providing a forum for the exchange of ideasacross cultural, linguistic and national boundaries.If the service can continue to contribute in thesecrucial areas, it will be worth the cost, many times over.

In December 2002, BBC World Service celebrated its 70th birthday with a global concert across five continents and a 14-hour broadcastthat linked some 50 locations around the globe

As reconstructioncontinues in Afghanistanthe BBC’s Pashto andPersian Services remainsof vital importance toaudiences there

BBC World Serviceprovided a lifeline serviceof trusted information tothe Iraqi people 24 hoursa day, offering a forum forlisteners and online users


“All the Iraqis, even those who defend Saddam, know the extent of this sadistic regime…” Listener, Kuwait

“I do not support Blair, Bush or this war, but I can rely on the World Service to bring the truth.” Listener, Iraq

Excerpts from calls taken on the Arabic interactive programme Nuqtat Hewar


Director’s overviewBuilding for the future in a changing world

more important time to connect with ouraudiences and encourage them to connect with each other.

In July 2002, the Government announced aSpending Review settlement for the World Servicewith an average 3.4% above RPI annual increasefor 2003-06. New investment plans focus oncontent enrichment in radio for services to theArab world and Afghanistan; FM expansion in the major global conurbations; and building our multi-lingual internet presence with enhancedinteractivity.

We retained our global audience of at least 150 million weekly listeners in a world of explodingcompetition. This has been achieved by expandinglocal partnerships and our FM presence. The WorldService is now available on FM in 138 capital cities.

In some countries, BBC World Service has as great an impact as BBC Radio 2 – Britain’s most-listened-to station – has in the UK. For example,World Service programmes in Nigeria and Kenyahave a weekly reach of over 30%.

Moreover, the first independent city-wide survey in Kabul since the fall of the Taleban showed BBCWorld Service to be the leading broadcaster in theAfghanistan capital with an unprecedented 82% of Afghans listening to BBC broadcasts in Persianand Pashto every week.

Audiences in the USA listening via FMrebroadcasters on public radio are now at theirhighest level ever. Audience figures have increasedby 70% in the past two years – up from 2.3 millionin 2001 to 3.9 million, in one of the world’s most

As the Iraq war began, the BBC World Service inEnglish undertook its biggest news programmingoperation ever, providing continuous news andanalysis for over 220 hours.

The BBC Arabic Service also played a pivotal rolein providing independent, trusted information tothe people of Iraq and across the Arab world. Itbroadcast live from Cairo at breakfast time andproduced an extra 13 hours of news and currentaffairs output every day.

A wide range of voices and opinions was ref lected in daily interactive discussion forums onthe English and Arabic radio services and online,which became a strong and distinctive feature ofthe output.

In Iraq itself during the war, we were providing alifeline service of trusted information to the Iraqipeople through the BBC Arabic Service. At thesame time, coalition forces were tuning in to theWorld Service in English on the battlefield as theyadvanced to Baghdad. Meanwhile, at the CentralCommand Centre in Qatar, BBC World was a key source of information.

It was a vivid reminder of the role andresponsibility the BBC plays in providing trusted,reliable, accurate, impartial information to all itsaudiences; to make sense of a complex, confusingand contradictory world; and to provide a forumfor the exchange of ideas.

At its best, international broadcasting has thepotential to foster understanding and establish a genuine dialogue across cultural, linguistic andnational boundaries. There has never been a

It has been an extraordinary year for the BBC World Service in which we built on our outstanding reputation as a beacon of trust, independence and quality

The World Servicecovered the 2002Commonwealth Games,which took place inManchester in the United Kingdom

Pro-democracy leaderAung San Suu Kyi wasreleased in May 2002after 19 months of housearrest by the Myanmargovernment. “I dependeda lot on the BBC WorldService. It was my only connection with the world”


BBC Monitoring, based at Caversham, respondedto the par ticularly high demand for fast andaccurate global media monitoring in the past year,par ticularly during the Iraq conf lict. Customersatisfaction ratings for usefulness, range, selectionand responsiveness remained high.

The World Service marked its 70th anniversarythroughout December 2002 with high-profileevents of ambition and innovation that madeimpact both globally and at home. Programmesincluded a global concert – live from Dakar, Kabul,London, Mexico City and Mumbai – and a special14-hour programme on the anniversary day of19 December, linking more than 50 outsidebroadcasts around the world.

UN Secretary-General Kofi Annan, in his special70th anniversary lecture, memorably described the World Service as a “lifeline to learning,enlightenment and to hope itself ”.

It’s a testimony we will strive to uphold.

Mark ByfordDirectorBBC World Service and Global News

competitive markets. An average 22% of opinionformers in Boston, New York and Washingtonlisten to the World Service each week.

Surveys from nine selected markets around the globe show that the BBC World Service is the most trusted and objective internationalbroadcaster in each market.

A MORI survey of UK MPs showed a fur ther rise in the World Service favourability rating to its highest level ever. Moreover, the latestindependent survey of British Ambassadors andHigh Commissioners reveals that 93% agree thatthe BBC World Service enhances Britain’s imageabroad. Some 70% of the UK population is nowaware of the World Service.

An international English language version ofthe BBC news online site – bbcnews.com – was successfully launched in July. It built on theBBC’s reputation for convenience, depth, analysis,expertise and innovation – a trusted and widelyused news forum on the internet for debating key global issues, promoting interactivity anddialogue. It won the prestigious 2002 Webbyaward for the best news website in the world.

With the Iraq war creating huge interestworldwide in our online news offer, internationaltraffic in March 2003 increased year-on-year byover 200% for the combined international facingnews site in English and the language services to228 million page impressions. This easily broke allprevious records. There were par ticularly largegains for online services in English, Arabic, Spanishand Persian.

As world leadersincluding Thabo Mbeki,South African President,gathered at the EarthSummit in Johannesburgin September the WorldService broadcast in-depth analysis

Riots broke out in the northern city ofKaduna, Nigeria over the Miss World beautycontest that was due to take place in Abuja in November


Rageh Omaarreported live asBaghdad fell tocoalition forces

Clive Myrie reported forthe BBC whilst travellingwith the Royal Marines of 40 Commando Unit

“An American warplane hasbombed a Kurdish convoy in northern Iraq which hadbeen joined by members ofthe US Special Forces, killingseveral people in a ‘friendlyfire incident’.” The BBC’sworld affairs editor JohnSimpson who was travellingwith the convoy broadcast live from the scene minutesafter the attack. His translatorKamaran Abdurazaq Muhamedwas one of those killed

BBC journalists reporting for the World Service, bothembedded with coalition forces and reporters travellingindependently, provided insight and analysis during the Iraq war


Paul Wood spent ten weeks in the Iraqi capital where he had to work under restrictionsimposed by officials

“One of the joys of being part of the WorldService is the ability to be on the road, live,whenever it happens,” says Lyse Doucet,presenter of Newshour and Talking Point, whoreported for the World Service from Baghdad

John Simpson described a“scene from hell”, with all thevehicles in the convoy on fire andbodies – American and Kurdish –burning in front of him


A year in reviewCoverage of the Iraq crisis

“Thanks to the revolution in satellite telephonetechnology, our reporters were able to file livefrom the battlefield, giving our audiences a closerglimpse of war than ever before,” says Peter Burdin.“We received breaking news on the militaryengagements as the fighting unfolded. They wereour eyes and ears on the ground, giving us a bettergrasp of the story than in any previous conf lict.”

“We were ‘embeds’ with a unit keen to have us onboard, so from the star t we were not treated likeoutsiders but as an integral par t of the team,” sayscorrespondent Clive Myrie, who was embeddedwith the Royal Marines 40 Commando Unit. “Thepressures were enormous, having, of course, todeal with the dangers of life close to the frontlineof a major conf lict, but also the daily pressure ofnot knowing whether or not we would get ourmaterial on air. I hope we managed to give a littlebit of insight into what life is like for a marinefighting a war. We could never hope to provide a wide-ranging view of the war overall – what we provided was a valuable snapshot, I think.”

BBC World Service’s experts on defence andmilitary strategy ensured that these eyewitnessaccounts were put into context, as well asexploring what the war meant to the Arab worldand the wider international community. DefenceCorrespondents, based at the headquarters of the US Central Command in Qatar, providedregular analysis of the military position.

“During the conf lict it proved essential not just to report what Central Command was saying,but to report what was happening on the groundwith the accuracy and impartiality our audiencesexpect – but also to find room for the widestpossible range of voices and perspectives. BBCNews journalists and programme-makers worked

As the first bombs fell on Baghdad, news teamsbegan over 220 hours of live, continuous coverageon the English network, combining vivid eyewitnessreportage from the hear t of the conf lict withanalysis from the World Service’s team ofspecialists on diplomatic, military and Islamic affairs.

In Iraq, news teams reported directly fromBaghdad and the north of the country on theKurdish response and the advance of coalitionforces. Despite the fact that their reports andmovements were restricted by Iraqi Ministry of Information officials, Andrew Gilligan, RagehOmaar and Paul Wood, together with BureauEditor Paul Danahar, were able to maintaina regular supply of compelling reports from the capital.

“Many other media organisations were expelledfrom Baghdad before and during the war and welived with the constant fear that we would also beforced off air at any moment,” says Peter Burdin,Assignment Editor, World Newsgathering. “It is a tribute to the professionalism and accuracy ofour team that they were able to stay on air, eventhrough the final days when their hotel suffered a direct hit, killing several of their colleagues fromthe international press. They demonstrated thehighest levels of maturity and courage and wereable to tell the story of the fall of Baghdad for our audiences around the world.”

BBC World Service reporters also gainedunprecedented access to frontline action, withmore than a dozen teams ‘embedded’ with UKand US military forces during the conf lict. Theresult of weeks of negotiation with the Ministry ofDefence and the Pentagon prior to the war, theseteams were a key source of eyewitness material.

To cover the conflict in Iraq, and events leading up to it, BBC World Service’sEnglish network mounted its most comprehensive news operation – thelargest it has ever undertaken

More than 150correspondents,producers and technicalstaff were involved inspecial programmes of hour-by-hour newscoverage, debate and discussion

As events unfolded during the militaryconflict all generations in Iraq listened to theradio for news of thelatest developments

During the Iraq conflict of 2003, the ubiquitousimages of Saddam whichdominated both publicand private spaces weretorn down or vandalised


“The strange thing for me, as a first-time visitor to Egypt, was the extent of anti-American feelingamong the people when the government there is ostensibly pro-American,” says correspondentMark Doyle, who was based in Cairo. “There were lots of noisy demonstrations at mosques anduniversities. They were not really violent but moreformulaic, with shouting, then suppression from the massive police presence because people knowfrom long experience that they will be locked up if they go fur ther.”

Throughout its coverage of the conf lict, BBCWorld Service ensured that listeners could hearfrom all the different groups with an importantperspective on the conf lict. Studio discussionsfeatured experts from Arab and non-Arab Muslimcountries, as well as those from Britain and theUSA. The views of people and politicians incountries such as France, Germany and Russia who opposed the coalition action were givenprominence, too. Coverage also examined theimpact of the crisis on important long-runningglobal relationships, for example between the US and Europe, and the role of the UN.

It was not only experts and officials who wereable to voice their opinions. Through its interactiveprogramming, BBC World Service invited listenersto share their views. Setting a new precedent foraudience par ticipation, letters, emails, telephonecalls and, for the first time, SMS text messagesprovided an immediate response to events fromaudiences around the world.

“It has been vital to our credibility to give as broad a perspective on the story as possible,” saysMary Hockaday, Editor, BBC World Service NewsProgrammes and Current Affairs. “Whether it’s a five-minute bulletin or a rolling broadcast, wehave tried to put the detail into a bigger picture.”

closely with the regional specialists in the Arabicand the other language services to make the most of the World Service’s unique strengths,”said Phil Harding, Director English Networks andNews. “And listeners told us in unprecedentednumbers what they thought of the war. Therewere so many conf licting views, it proved essentialto try to guide our audience to as complete anunderstanding of the conf lict as we could provide,”he added.

In London, the World Service trebled the size of its specialist unit to ensure that experts were available to provide analysis live 24 hours a day. The team included experienced diplomaticcorrespondents William Horsley and BarnabyMason, plus additional World Affairscorrespondents and reporters.

News teams reported from Kuwait, Bahrain,Jordan, Syria, Israel, Egypt, Saudi Arabia, Iran andTurkey. To give audiences access to a wider rangeof voices, sections of major news programmeswere presented directly from Amman, Kuwait City and Cairo, as well as from Washington andthe UN headquarters in New York.

“One great example from Jordan was a debate on the war between Jordanian, Kuwaiti, Saudi andIraqi analysts and academics,” says Liliane Landor,Editor, Programmes, BBC World Service News and Current Affairs. “It was so compelling thatmany in the depar tment stood still just listening to it. To hear all those different Arab voices and tofind out how the separate representatives saw thesituation was absolutely fascinating, and their viewswere not necessarily what one would expect.”

Hans Blix speaks to themedia in New York after a UN Security Councilmeeting on Iraq in March

Tony Blair, in a majorinterview for the BBCArabic Service, pledgedthat Iraq’s futuregovernment would consist of Iraqi people


A year in reviewBBC Arabic

The BBCArabic.com website recorded a massiveincrease in traffic at the star t of the conf lict.On 20 March 2003, page impressions reached an unprecedented one million milestone within a 24-hour period. Audiences were also able to air their views about the war live on the popular,twice-daily debate programme Nuqtat Hewar,hosted by Hosam El Sokkari, the Head ofBBCArabic.com. Interactive forums have been animportant and distinctive way of capturing a widerange of views from across the Muslim and Arabic-speaking world about the conf lict. Emails, too,offered a valuable insight into audience reaction to our radio programmes and online sites.

This year, delivery has been improved across the Arabic-speaking world. Additional short wavefrequencies have been introduced into NorthAfrica and the Gulf area, while medium wavetransmissions have also been boosted. Anadditional FM station, set up in northern Jordan,can be heard in Israel and as far north asDamascus in Syria. It supplements FM coveragefrom Amman. BBC Arabic is also available on FMin Kuwait, Bahrain and Qatar and in Khar toum andWad Madani in Sudan. BBC Arabic and BBC WorldService in English have been made available onseveral satellite stations’ audio channels, includingNilesat, Arabsat, Orbit and Worldspace, and localstations are also rebroadcasting programmes.

As seismic shifts occur in the geopolitical landscapeand international diplomacy reacts to dramaticand fast changes in Iraq, Afghanistan and theMiddle East, the thirst for reliable, authoritative and impartial news and information remains at an all time high. The World Service remainscommitted to bringing insightful news and topicalfeatures and debate in Arabic and English.

Presented from London and the new media centrein Cairo, the Arabic service produced an extra 13 hours of news and current affairs output everyday. The broadcasts carried live set-piece events,including statements and press conferences by US President George Bush, British Prime MinisterTony Blair and senior Iraqi ministers, together withSecurity Council debates and military briefings.

In addition to hourly news bulletins, an extensivenetwork of reporters – based in Baghdad, Arbil in the Kurdish zone in northern Iraq, Kuwait,Amman, Riyadh, Istanbul and Tehran – were ableto provide regular live updates as well as ref lectingthe diversity of Arab views about the conf lict.

As the war progressed, presenters and technicalsupport staff were deployed from Cairo to other capitals in the region.

Reporting from Baghdad was par ticularlydemanding for correspondents from the BBCArabic Service. Iraqi reporter Sobhy Haddad was based in Baghdad and was first to report the opening bombardment around the capital.He and his Jordanian colleague, Sa’ad Hattar,continued filing their reports despite the dangers.

In addition to its reporters in the region andLondon, the BBC Arabic Service was able to utilisethe specialist skills, knowledge and analysis of theBBC’s defence and diplomatic correspondents,plus its news reporters in Washington, Moscowand other European capitals to provide depth,context and global opinion.

From the outbreak of military action in Iraq on 20 March 2003, theBBC Arabic Service began broadcasting rolling news and analysis round the clock to its global audience of Arabic-speaking listeners

The BBCArabic.comwebsite recorded amassive increase intraffic at the start of theconflict. On 20 March2003, page impressionsreached anunprecedented onemillion milestone withina 24-hour period

BBCArabic.com offersinteractive forums for Arabic speakersaround the world

Anti-war demonstratorsin Cairo protested asArab foreign ministersdiscussed unfolding events


Listeners from across theMiddle East – includingsoldiers, refugees andresidents directly affectedby the conflict – tunedextensively to the BBCWorld Service. In Iraq,electricity failures leftbattery operated radios as the only reliable sourceof information


Since the fall of the Taleban, the challenge for BBC World Service has been to maintain itsrelevance in the face of growing choice andchanging audience needs as the country embarkson reconstruction.

“It has been a year of challenges andopportunities,” says Baqer Moin, Persian andPashto Service Head. “In moving from war topeace in Afghanistan we have had much to dealwith, reporting how the Afghan people would like to see their society moving.”

Building on its strong reputation, the World Servicehas shifted from being a lifeline broadcaster toserving a more diverse set of audiences with acompelling mix of bilingual rolling news, specialprogramming and features.

Output in Pashto and Persian has ref lected theaudience’s changing habits with the critical themebeing the reconstruction of the country and stronginternational and regional coverage.

The World Service’s Pashto and Persian servicestarget Afghanistan with a mixture of national and international news and features, including a range of development-focused programming.The main delivery platform has been short andmedium wave, boosted by a new 1314 medium wave frequency. Audibility in the major conurbationshas now been greatly enhanced by securing 24-hour FM relays in Kabul and Mazar-e-Sharif.

In June, the Pashto and Persian services markedthe importance of the Loya Jirga – Afghanistan’smost important traditional and political eventwhen 2,000 representatives from 30 provincesgathered to elect a new administration – with

A year in reviewReconstruction of Afghanistan – one year on

The Persian and Pashtoservices mounted aspecial week ofprogrammes to cover the Loya Jirga whichelected a new presidentfor Afghanistan

Politicians like AshrafGhani took part ininteractive debates with listeners

a week of specially extended programming.This included reporting from inside the nationalassembly, capturing debates and broadcasting the voices of political representatives, members of the public and a variety of experts.

“Feedback from across the cities in Afghanistanstar ted national debates among people fromdifferent par ts of the country and throughout the diaspora,” says Behrouz Afagh, Head ofEurAsia Region.

Other highlights included the live broadcast from Kabul as par t of the World Service’s 70thanniversary celebrations. “It was unimaginable untilthen that Afghan musicians could play to the worldfrom a country where music was banned until a short time ago,” says Afagh.

But it’s not just formerly silenced musicians whovalue the work of the Persian and Pashto servicesin Afghanistan. The World Service provides aforum for politicians like Hamid Karzai, AshrafGhani, Dr Abdullah and President Bush’s specialenvoy to Afghanistan, Zalmay Khalilzad,to share their views, and an unprecedentedopportunity for Afghan people to question them directly.

“Because of our impact we have no trouble getting big names. International leaders recognisehow important our service is; they know we arethe direct line to the Afghan people,” says Behrouz Afagh.

The editorial team includes a significant number of women, including Asma Habib, Najiba Kasreeand Meena Baktash. There has been a deliberateand concerted effor t to bring women’s issues tothe fore, and to ensure that women’s voices areheard in programmes.

BBC World Service’s Pashto and Persian services have long enjoyed an unparalleled reputation in Afghanistan, effectively serving as a nationalbroadcaster through two decades of civil war and humanitarian crises

“Feedback from acrossthe cities in Afghanistanstarted national debatesamong people fromdifferent parts ofAfghanistan andthroughout thediaspora”


Women journalists in Afghanistan saw theirrole supported by theBBC World Service Trust which launched its Afghan Women’sEmpowerment Project in January

The BBC brought the first reports of the attemptedassassination of theAfghan president HamidKarzai in September

The role of women within the media is still a hotly debated issue in Afghanistan. To help women increase their involvement, the BBC World Service Trust launched the AfghanWomen’s Empowerment Project in January 2003.This culminated in Afghan Women’s Month inKabul, which featured films, discussion groups,training courses and talks related to the work of women journalists and media workers inAfghanistan, encouraging women to form theirown journalism associations and to mentor female journalism students.

The BBC has near-universal awareness and hightrust ratings in Afghanistan. The first independentresearch, following the launch of FM broadcasts in 2002, showed that the BBC World Service hasan 82% weekly reach in Kabul, the highest reach of any broadcaster in the capital.

A team made up of the Pashto and Persianservices, the BBC World Service Trust and a widerange of experts from BBC Technology, BBC PublicPolicy, and the Afghan Education Project providedRadio Afghanistan with two fully equipped, self-operating studios, digital-editing equipment,computers and mini discs, satellite phones andother essential production equipment. It alsoopened a Media Resource Centre in Kabul. Thecentre, currently managed by the BBC, includestraining facilities, computers and audio-visualequipment. It currently provides basic computerand digital-recording training to nearly 300 staff,as well as to other outside organisations.

The Trust provided a strategic advisor to theMinistry of Information and Culture to helpdevelop a plan for the media. As a result, theAfghan Interim Authority issued a Policy

Declaration in June 2002 and, in conjunction with the Trust, organised the country’s first mediareconstruction and development conference in September.

With much of the country destroyed, it is difficultfor journalists to operate effectively, par ticularlyoutside Kabul. Through long years of war, Afghanshave come to rely on international radio foraccurate, balanced news to the extent that familieshave been prepared to do without necessities toobtain batteries to hear the radio.

“With the help of the BBC, Afghanistan has drawn up a new strategy for its media which isprogressive and comes closest to the acceptedinternational standards of ‘free’ media, in thewhole of the region,” says Moin.

“The government of Afghanistan says the majorityof Afghans are illiterate, yet the level of politicaldiscourse in Afghanistan is very sophisticatedbecause they have been listening to BBC WorldService radio for 50 years,” says Moin. “It istherefore very rewarding to work with Afghans as they are some of the most sophisticatedconsumers of the media. In terms of reacting tonew ideas, you take one step and they take ten –they seem to have a real hunger for learning and a determination to improve their lives and tobecome a 21st century country with a 21stcentury media.”

The World Service is determined to ensure that the Persian and Pashto services continue to provide their Afghan audiences with trustedinformation, adding purpose, learning and sharedunderstanding for people there.


“For many the BBC World Service has been a lifeline – to learning, to enlightenment,to hope itself. Even today, to hear thattrademark series of bleeps signalling the topof the hour is to hear humankind awakened,informed, empowered. No matter where one listens, no matter what one’s station in life, the BBC’s programmes resonate with special urgency.”Kofi Annan,Secretary-General, United NationsDecember 2002


A year in reviewSeventy years of BBC World Service

most ambitious live outside broadcast we haveever done,” comments David Stead, the season’seditor. “We were broadcasting via satellite fromMexico City, Dakar, Kabul, Mumbai and London.”

The event necessitated a huge amount ofcollaboration between BBC departments andother media providers, with many workingtogether for the first time. Roger Short, aproducer with the BBC’s domestic station Radio 3,travelled to Dakar with two studio managers fromthe African Service to organise broadcasts fromthere. In Kabul, the Pashto and Persian servicesworked with the Afghan Educational Trust to co-ordinate the concert in Afghanistan.

The concert was a resounding success. Anchoredby broadcasters John Peel and Emma B fromLondon, the event featured many leading namesfrom world music, including the acclaimedSenegalese musicians Youssou N’Dour and BaabaMaal, the Mexican band Los de Abajos, Indiandrummer Trilok Gurtu, UK star Ms Dynamite, andrenowned Afghan musicians, who had not playedlive in their country since the Taleban seizedcontrol in Kabul in 1996.

“The 70th anniversary programmes showcasedthe best of what we’ve done in the past but alsohighlighted what we are capable of today,” saysNigel Chapman, Deputy Director, BBC WorldService, who led the co-ordination of the season.“We connected our listeners with the worldleaders who shape their lives, put on majorconcerts, mounted technically challengingbroadcasts from unlikely places and produced a range of programmes of celebration andref lection. The feedback was very positive withlisteners telling us that we continue to make a big difference to their lives.”

During the inaugural broadcast in 1932, the BBC’sfirst Director General, Sir John Reith, said thatradio would become “a connecting and co-ordinating link between the scattered par ts of theBritish Empire”. Twelve months later, a programmewas broadcast back to London for the first time.Produced by the Africa Broadcasting Company, itwas transmitted from the top of Table Mountain.In 2002, it was the turn of Ben Dotsei Malor, aproducer and presenter with the African Service,to wish listeners a good morning as the sun roseover the ocean to mark another historic occasion.

Highlights of the programming on 19 Decemberincluded interviews with Archbishop DesmondTutu, actress Angelina Jolie, singer and UN SpecialEnvoy Geri Halliwell and footballer Thierry Henry.A special edition of the interactive programmeTalking Point gave listeners across the globe theopportunity to put their questions to Mark Byford,Director, BBC World Service and Global News.And during the day, the presenters read outlisteners’ emails and broadcast calls from aroundthe world.

The anniversary season began with two special broadcasts which gave listeners a uniqueopportunity to question two world leaders.From 10 Downing Street, the British PrimeMinister, Tony Blair, answered calls and emails sent in to a special Talking Point. Days later, UNSecretary-General Kofi Annan gave the WorldService 70th Anniversary Lecture from New York,offering his perspective on the challenges facingthe world, and then engaged in discussion withlisteners around the globe.

The other highlight of the 70th anniversarycelebrations was the global concert, broadcast live on 15 December from five cities. “It was the

Tony Blair took questionsfrom listeners around theworld in Talking Point aspart of the BBC WorldService 70th anniversarycelebrations

Youssou N’Dour was one of many internationalmusicians invited to playat the 70th anniversaryglobal concert, broadcastlive on 15 Decemberfrom five cities

On 19 December 2002, BBC World Service broadcast a day of special liveprogramming from the top of Table Mountain in Cape Town, South Africa to mark its 70th anniversary

“The 70th anniversaryprogrammes showcasedthe best of what we’vedone in the past butalso highlighted what weare capable of today”


70 years of changeMany voices, one world…

For 70 years BBC World Service has maintainedits reputation for broadcasting excellence andhigh standards of accuracy and impartiality

1932 1937 1942 1947 1952 1957 1962

0 5 10 15 20 25 301932 The Empire Service first beganbroadcasting to the BritishEmpire from makeshift huts in Daventry

During the Service’s inauguralshort wave broadcast, theBBC’s first Director General,Sir John Reith, said that radiowould become “a connectingand co-ordinating link between the scattered parts of theBritish Empire”

Six days later, echoing SirJohn’s sentiments, King GeorgeV took his place before themicrophone to deliver the first Christmas message to his subjects. Rudyard Kiplingwrote it for him

1933A programme was broadcastback to London for the firsttime. Produced by the AfricaBroadcasting Company, it wastransmitted from the top ofTable Mountain by Post Officewireless beam

1934 The Empire Service acquiredits own news section

1935 The Silver Jubilee ofGeorge V was broadcast

1938BBC Arabic – the BBC’s firstforeign-language service – was launched. Soon followedby Spanish and Portuguese for Latin America. French,German and Italian wereheard for the first time thisyear too, when, during theCzechoslovak crisis, theForeign Office asked for a broadcast by Prime MinisterNeville Chamberlain to betransmitted in those languages.Today the World Service canbe heard in 43 languages

1936 The abdication announcementof Edward VIII broadcast

1939 Outbreak of World War II.The Nazis had been jammingBBC broadcastsexperimentally for severalmonths, and on the day Britain and, France declaredwar, listening to the BBC was made illegal in Germany

The Ministry of Informationasked the BBC to set up a monitoring operation andagreed to pay for it

The BBC Empire Orchestra is created

1940Winston Churchill famouslybroadcast a message on theFrench service, just before the French surrender

The BBC broadcast inBurmese for the first time in September at the outbreakof war in the Far East. Hindiand Urdu were launched thesame year

In October a delayed-actionbomb killed seven people,injured many others and blewout part of the west side ofBroadcasting House. Listenersto the nine o’clock newsheard the announcer pause,and then continue

In December a land minecaused so much damage toBroadcasting House that theEuropean service had to bemoved to a disused skatingrink in Maida Vale. This washardly the best place to bewhen London was beingbombed every night and a new home was found. Thiswas Bush House, where there were already somebasement studios and offices

1942The BBC began to broadcastin Morse code in the earlyhours of the morning to help clandestine newspapers,which were beginning to appear in most of theoccupied countries

1943The BBC began teachingEnglish through the airwavesfor a few minutes early in the morning to help peoplealready studying English

George Orwell resigns fromthe World Service because he felt he was wasting both his time and public money

The Monitoring Service movedto its present site, CavershamPark, just outside Reading

1944“Almost all Germans listen tothe BBC’s Hier ist England. Nodeath penalties are imposedbecause it would entail mostof the Wehrmacht’s demise”reported a French studentwho escaped from occupiedBrittany

1945Death of Hitler announced on the German Service afterKurt and Willi, a satirical ‘take’on the effects of the war onthe English

Alistair Cooke

King George V

1946Russian Service opened inMarch after the Sovietgovernment lifted a wartimerestriction on privately-ownedradio sets capable of receivingoverseas broadcasts

Wartime programmeguide

Caversham Park

Miss Dynamite’selectrifyingperformance at the70th celebrationsshows that WorldService is at the cuttingedge of modern music


1972 1977 1982 1987 1992 1997 2002

40 45 50 55 60 65 70

1956At the time of the Suezcrisis BBC broadcasts inArabic were increased

1997 Westway, the longest runningdrama serial broadcast to theworld, began. In 2002, theworld’s first knowninternational soap charactertransfer happened whenWestway character Zamiraturned up a month later in theWorld Service’s Albanian soapRruga Me Pisha

1962 New technology allowed asatellite to send informationabout the ionosphere, whichwould improve the quality of short wave broadcasts

1965 The Empire Service, havingundergone many namechanges, finally became theWorld Service

1970Radio Newsreel became apurely overseas programme

1971Towards the end of the Indo-Pakistan war a BBCBengali reporter was draggedout onto the streets andmurdered in front of his wifeand children by supporters of Pakistan infuriated by theBBC broadcast. The murderedreporter was not responsiblefor the reports

1982 The BBC began to takeadvantage of satellitebroadcasting to send signals by satellite to its relay stations

1986Agreement was reached for the American Public Radio network to take World Service news andcurrent affairs programmesand distribute them to itsaffiliated stations

1987The Soviet authorities stoppedjamming the BBC WorldService

The World Service gainedaccess to a satellite coveringmost of Europe

1988 The title World Service,originally confined to theservice in English, wasextended to services in foreign languages replacing the term External Services

The BBC resumed its dailyservice to the Caribbean.This had been abolished in1974 as a result of fundingshortfalls

1990 The Liberian civil war of 1990provided an extraordinaryexample of BBC influence,and its coverage resulted inperhaps the closest the BBCever came to a saturationaudience

1991 The first World Servicetelevision news bulletin wenton the air with a version of Lilliburlero, the tune thatintroduced World Servicebulletins for many years

New control room in BushHouse formally opened

1992A new computer system(EDiT) came into operation,revolutionising the distributionof news material within BushHouse. It was described as the ‘probably the largest andmost complex system of itskind in the world’ with 1,000terminals, 300 printers and100km of fibre optic cabling

2002On 19 December, BBC WorldService broadcast a day ofspecial live programming fromthe top of Table Mountain inCape Town, South Africa tomark its 70th anniversary.Ben Dotsei Malor, a presenterwith the African Service,wished listeners a “GoodMorning” as the sun rose overthe Indian Ocean to markanother historic occasion

1998Arabic became the WorldService’s first foreign-languagewebsite. Expanded asBBCArabic.com in 1999.Chinese, Russian, Spanish,Hindi, Urdu, Persian andPortuguese for Brazil soonfollowed. Today audio from all 43 languages can be heardvia the BBC World Servicewebsite

Wole Soyinka, 1986winner of the Nobelprize for literature haswritten plays for theWorld Service

Ben Dotsei Malor

Dylan Thomas is just one of many internationalliterary greats whose works have been featuredon the World Service

1979 The Shah of Iran blamed thePersian service for his fall frompower. It was later confirmedby the British ambassador atthe time that the BBC hadreported fairly by telling theIranians, in their own language,of events that were happeningin the country


“I think BBC World Service is a fantastic service, a serviceof information that has greatresponsibility and that reachesthe whole world.” Ronaldo


During the Iraq crisis in March 2003, traffic onthe World Service’s newssites doubled from theprevious month’s figure

New technologies offer audiences a moresophisticated level of interaction

A year in reviewBBC World Service new media

site was relaunched successfully to provide two editions, one for UK users and the other,bbcnews.com, for international users.

In 2002, BBCArabic.com was redesigned to include extra index pages. The World Service alsolaunched new news sites in Hindi, Urdu and Pashto– breaking new ground in language web publishing.Many journalists now work in bi-media newsrooms,creating content for both radio and online.

There is also a move to make World Servicecontent available on other platforms, such asmobile phones and Personal Digital Assistants(PDA). People in China can now learn Englishthrough a new BBC English language teachingservice giving them hints, tips and vocabulary viatheir mobile phones. News headlines and radiobulletins are now available on mobile phones incountries ranging from Nigeria to India. Onlinecontent is syndicated to par tners around theworld such as UOL in Brazil and Yahoo! in Spanish,helping to raise awareness of BBC World Servicenews sites and reaching out to new users.

“New technologies are giving us a level ofinteraction with our audiences we have never seenbefore. It is remarkable and rewarding,” says NigelChapman, Deputy Director, BBC World Service.

“As well as offering services to scattered diasporacommunities, the World Service keeps people intouch with their language, country of origin and itsnews, by creating shared communities of interestwhich cross traditional broadcasting boundaries,”says Myra Hunt.

Demand for news about the Iraq war led tounprecedented levels of traffic for the WorldService’s news websites. In March 2003, trafficalmost doubled from the previous month’s figure to 228 million page impressions. More than 13 million users visited World Service sites duringthe conf lict. There were nearly 22 million pageimpressions registered at BBCArabic.com, morethan seven million at BBCMundo.com (the Spanishsite) and more than six million at BBCPersian.com.

Listening to news reports online also increasedsubstantially. On 20 March, there were more than a million ‘listens’ online to World Service live news coverage.

“The internet is now a trusted source of news and information,” says Myra Hunt, Head of NewMedia. “Around the world the BBC World Servicesites are a key source for both headline news and comprehensive analysis. In par ticular,BBCArabic.com and BBCMundo.com have firmlyestablished themselves as primary worldwidereference points in Arabic and Spanish.”

Throughout the year, BBC World Service sites ran multilingual, multimedia Talking Point forums.Among those responding to audience questionswere Russian Foreign Minister Igor Ivanov, UKForeign Secretary Jack Straw and the Saudiambassador to the UK, HRH Prince Turki al-Faisal.

World Service news sites have been built to berobust and reliable at times of high traffic. This was helped by the relaunch of the English newssite in a new widescreen format (800 pixels wide)in February 2003. In July 2002, the English news

The war in Iraq coincided with the internet’s coming of age as an indispensable source of news and information for millions of users

Around the world theBBC World Servicesites are a key sourcefor both headline newsand comprehensiveanalysis


International audiences,newsrooms, andgovernment departmentsneed to know what themedia around the world is saying

BBC Monitoring analysedRussian media as theMoscow siege unfolded

A year in reviewBBC Monitoring

BBC Monitoring maintained high customersatisfaction ratings. Of those customers surveyed,35% said the service had improved over the past12 months, citing its access to key sources, theselection skill of its staff and increasedresponsiveness as important attributes.

In April 2003, Dr Chris Westcott – formerly Headof New Media at BBC World Service – took overas Director BBC Monitoring, succeeding AndrewHills. “To capture both the significant content andthe powerful impact of the world’s media is adaunting task, but a vital one,” Dr Westcott said of his new role.

Based at Caversham in Berkshire, BBC Monitoringhas overseas units in Moscow, Kiev, Baku, Tashkentand Nairobi, and a network of independentcontractors. Funded by the Foreign Office, theMoD, the Cabinet Office and BBC World Service,it employs over 500 staff and monitors more than3,000 radio, TV, press, internet and news agencysources in over 100 languages. It works closelywith the US Foreign Broadcasting InformationService (FBIS), the two units sharing newsgatheringduties around the world.

Today, the impact of world media reporting hasnever been greater and technological advancesmean that reports can be around the world inseconds. “Increasingly, the media not only reportson world events but ref lects international opinionand helps to shape global debate. More than everbefore, audiences, newsrooms and governmentdepartments rely on BBC Monitoring to tell themwhat the rest of the world is thinking,” says Dr Westcott.

The conf lict in Iraq presented a huge challenge to BBC Monitoring in its role as an internationalmedia watchdog, tracking global broadcasts forstories of impact and significance. Extra staff werebrought in to monitor the coverage of the crisis by the world’s media, with Arabic-speaking staffworking round the clock.

BBC Monitoring produced special mediasummaries, providing an overview of all that was happening in the region. It also increased itstracking of new stations broadcasting into Iraq,such as Radio Tikrit. The team was also able toprovide feeds from various Iraqi and regional TV stations back to the BBC and governmentdepartments.

Staff kept a close watch on the Iraqi media’sreporting of the war, tracking speeches by theIraqi leader, Saddam Hussein, and his ministers,following the broadcast news reports and assessingthe mood of Iraq as conveyed by the media there.

In March 2003, a new Arabic television channel,Al-Alam (The World), suddenly came on air.Based in Tehran and run by IRIB (the Iranian stateradio and TV service), it quickly gained viewers inBaghdad. One of the latest 24-hour news channelsto appear in the Middle East, Al-Alam’s broadcastswere traced by BBC Monitoring to an area on theIran-Iraq border.

As well as informing its customers of what themedia in the Arab and Muslim worlds were saying,during this international crisis, BBC Monitoring alsomaintained its full range of in-depth reporting onother countries and regions of the world, theirinternal politics and foreign relations.

“Monitoring the world’s media during the Iraq crisis was tougher than it wasduring the first Gulf War. The range of influential media that needed monitoringwas bigger and BBC Monitoring played a more prominent role that led to greaterdemands,” says Brian Rotheray, Managing Editor, BBC Monitoring Customer Services

Today, the impact ofworld media reportinghas never been greaterand technologicaladvances mean thatreports can be aroundthe world in seconds


“Audiences,newsrooms andgovernmentdepartments relyon BBC Monitoringto tell them whatthe rest of theworld is thinking”Dr ChrisWestcott


A year in reviewBBC World Service Trust

than 3,500 video screenings of the programmes in rural villages with poor access to radio andtelevision. These were followed by communitydiscussions conducted by NGO facilitators.

The campaign is aimed at preventing an epidemicin India’s northern states. With an estimated four million cases at the end of 2001, India has the world’s second highest absolute number ofHIV cases after South Africa. In a country wherediscussing sexual health is still considered taboo,using television and radio to promote changes in behaviour and attitudes towards HIV/Aids has proved to be an effective way of tackling the problem.

Other highlights during the year include the rapidresponse which the Trust was able to mount tothe crisis in Afghanistan. A week after the fall ofKabul, the Trust put together a BBC team toundertake an assessment of the immediate needsof the Afghan media. These findings were fed intothe UN’s reconstruction conference, which tookplace in Tokyo in early 2002. The Trust thenembarked on a comprehensive programme oftraining Afghan journalists, equipping Radio TVAfghanistan with the country’s first digital studiosand working alongside the Ministry of Informationand Culture to help develop the first policy forchanging Radio TV Afghanistan into a publicservice broadcaster.

All the Trust’s work in Afghanistan is nowmanaged by the Afghan Education Project, a highlyskilled resource of Afghan dramatists, writers andproduction staff. They have been producing theinnovative radio soap opera, New Home New Life,in Peshawar in Pakistan for the past eight years.The team moved to Kabul in October 2002 andre-established production of the educational soapalong with a distance-learning programme forchildren and is now at the forefront of educationaland developmental broadcasting in Afghanistan.

An independent charity established in 1999 andthe international development arm of the BBC,the Trust has supported reconstruction work in Afghanistan, launched the largest HIV/Aidscampaign ever undertaken in India, concluded an 18-month trachoma-awareness initiative inEthiopia, Ghana, Nepal and Niger, and launched a ground-breaking literacy initiative in Somalia.

“There is no shortage of ideas,” said Stephen King,Director, BBC World Service Trust. “The range andscale of our projects is growing rapidly and withthe right funding there is much more we can do to reduce poverty in a highly effective way.”

This past year, the Trust’s HIV/Aids media campaignhas yielded some impressive results. Four monthsinto the 10-month campaign, an independent surveyconducted by A C Neilsen and Johns HopkinsUniversity found that the campaign had reached60% of the target population in five northernIndian states – more than 50 million people.

On a national level, some of the televisionprogrammes are watched weekly by more than150 million people. The campaign developed newradio and television programmes to reinforce keymessages about HIV/Aids. These were primarilybased on the need for young people to protectthemselves and for an end to discriminationagainst those living with Aids. The programmesincluded Jasoos Vijay (Detective Vijay), India’s firstinteractive detective drama which was screenedthree times a week and involved the audience in the detection process; Haath Se Haath Milaa(Let’s Join Hands Together), a weekly youth ‘reality’television travel show; and Chat Chowk, a weeklyradio phone-in show dealing with personal health issues. In addition to these programmes,adver tising spots ran three times a day, on bothtelevision and radio, for the duration of thecampaign. In total, over 1,000 individual broadcastswere aired and the campaign also organised more

Through the innovative use and reach of mass media, the BBC World ServiceTrust has been pioneering new ways to aid reconstruction, promote health and reduce poverty in the developing world

The World Service Trusthas recently concluded an 18-month trachoma-awareness initiative

Haath Se Haath Milaa(Let’s Join HandsTogether) a weekly youth‘reality’ television travelshow is part of India’slargest ever mass-mediacampaign aimed atincreasing awareness of HIV/Aids

The HIV/Aids campaigndeveloped new radioand televisionprogrammes in India toreinforce key messages,reaching more than 50 million people


This provides an average increase of 3.4% aboveRPI for each of the three years in the SpendingReview period and will enable BBC World Serviceto focus investment in:

+ Enriching programme content in languages with major geo-political impact

+ Building our internet presence, with enhancedinteractivity

+ Improving audibility including FM expansion in capitals and major cities

At this critical time for the Arabic-speaking world, the World Service is devoting specificfunding to enhanced newsgathering and specialprogramming in radio and online. The BBC ArabicService has maintained its 24-hour news presencethroughout the conf lict in Iraq and will continue to offer enhanced current affairs, analysis andinteractive debates.

Despite the focus of world attention havingmoved to Iraq and the Arab world in recentmonths, the World Service’s enhanced programmingin key languages of relevance to South West Asia(Persian, Pashto and Urdu), which was temporarilyintroduced after 11 September 2001, remains acritical broadcasting priority.

Africa continues to be a priority for newprogrammes and services. The World Service is investing in a weekly programme in English,Africa Live, to increase understanding of vitaldevelopment issues, and it will be enhancingnewsgathering for this critically important region.

The temporarily funded services for Rwanda and Burundi in Kinyarwanda and Kirundi will be supported on a permanent basis followingresearch which demonstrated the very high level of listenership there.

Africa Live has pioneereda new interactive formatwhere listeners all overthe continent use theirmobile phones to debatecritical development issues

A solar-powered FMtransmitter has been built to bring the World Service to thepredominantly Hazarapopulation of the Baimanregion in Afghanistan

A year in reviewLooking forward – priorities for 2003-2006

The World Service will also be investing in majorlandmark series on themes of global importance,such as international security, Islam and modernity,and HIV/Aids.

Investments in internet services have been a keyfeature of the World Service’s evolution in thedigital age. The World Service’s online offer isalready reaching significant numbers of users andgaining recognition as an industry leader. TheWorld Service aims to improve this service overthe Spending Review period. We will be increasingthe depth and breadth of our English and Arabicsites, extending Russian and Portuguese for Brazilonline to full 24/7 services and enhancing theonline provision for users in South Asia. The World Service will also invest in improvinginteractivity in English and key languages includingArabic, by developing ‘world forums’ to promoteengagement and dialogue across nations andcommunities.

BBC World Service is already available in 138capitals around the world, but FM expansion mustcontinue if the service is to remain competitive.In a growing number of markets, FM is now themain method of delivery of World Serviceprogramming. As well as targeting specific capitalcities not yet reached by FM, including in the Arabworld and Russia, we will expand our networks oftransmitters and local par tners to include majorconurbations in our most important markets.

In July 2002, the UK Government announced the Spending Reviewsettlement for BBC World Service for the period 2003-06, withadditional operating funds of £27 million per annum by 2005/06,increasing Grant-in-Aid to £239 million per annum

At this critical time forthe Arabic-speakingworld, the WorldService is devotingspecific funding toenhanced newsgatheringin the region and specialprogramming in radioand online

The BBC World ServiceTrust uses media to raiseawareness of humanrights and health issuesacross the globe

The BBC World ServiceTrust uses media to raiseawareness of humanrights and health issuesacross the globe


A year in reviewOutput and performance measures

1 Global Radio AudienceAverage weekly audience (millions)Number of adults listening in an average week, through direct and/or indirect broadcasting via par tners,excluding areas where measurement is not possible. Global totals are shown rounded to wholenumbers; regional figures are shown rounded to nearest half million. The regional figures, therefore,may appear not to add up to the global total.

National surveys are carried out in a range of countries every year in order to update the globalaudience figure and to assess performance among target audiences. From 2002/03, surveys are nowcarried out annually in countries covering around 75% of the global audience, with other countries being surveyed periodically.

2001/02 2002/03 2002/03Actual Target Actual

Global 150 156 150

RegionalAfrica and the Middle East 59.0 62.0 61.5

Americas 9.5 12.5 11.5

Asia and the Pacif ic 57.0 55.5 55.0

EurAsia 10.5 11.0 8.5

Europe 14.5 15.0 13.0

Awareness, Reach, Objectivity and RelevanceFrom 2002/03, national surveys now include data on awareness, reach, objectivity and relevance, bothfor BBC World Service and for international public service radio competitors. This data will be reportedannually which will enable trends to be identified over time. Prior year data has been omitted from thetables below as it is not on a comparable basis.

Awareness Percentage of adult population who are aware of BBC World Service (BBC WS)/main international radio competitor

2002/03 2002/03Country Main international radio competitor BBC WS Competitor

Nigeria Voice of America 50.2 40.2

Egypt Radio Monte Carlo 26.6 28.2

Kenya Voice of America 54.7 25.6

Pakistan Voice of America 40.6 9.1

Bangladesh Voice of America 39.4 29.7

Indonesia Voice of America 9.2 3.4

Russia Radio Liber ty 31.8 28.8

Poland Deutsche Welle 36.6 11.8

Romania Radio Free Europe 41.3 61.2



1 Global Radio Audience continuedReach Percentage of adult population who listen to BBC World Service/main international radio competitor weekly


Nigeria Voice of America 32.0 22.2

Egypt Radio Monte Carlo 5.0 6.2

Kenya Voice of America 32.6 9.2

Pakistan Voice of America 15.7 1.2

Bangladesh Voice of America 15.8 7.3

Indonesia Voice of America 3.3 0.7

Russia Radio Liber ty 1.7 1.4

Poland Deutsche Welle 5.0 0.6

Romania Radio Free Europe 12.0 5.2

ObjectivityPercentage of listeners who say that BBC World Service/main international radio competitor “providesunbiased and objective news and information”


Nigeria Voice of America 63 47

Egypt Radio Monte Carlo 17 9

Kenya Voice of America 74 37

Pakistan Voice of America 25 10

Bangladesh Voice of America 85 47

Indonesia Voice of America 39 16

Russia Radio Liber ty 18 13

Poland Deutsche Welle 32 17

Romania Radio Free Europe 27 14

RelevancePercentage of listeners who say that BBC World Service/main international radio competitor “providesnews that is relevant to me”


Nigeria Voice of America 69 52

Egypt Radio Monte Carlo 14 7

Kenya Voice of America 61 29

Pakistan Voice of America 43 8

Bangladesh Voice of America 60 37

Indonesia Voice of America 43 40

Russia Radio Liber ty 12 10

Poland Deutsche Welle 12 4

Romania Radio Free Europe 26 10



2 Online AudienceMonthly text and audio page impressions (millions)

March 2002 March 2003 March 2003Actual Target Actual

BBC World Service site 28.9 38.0 77.3

International facing news site(a) 46.4 67.0 150.4

Total 75.3 105.0 227.7

(a) A new international facing news site was launched in July 2002, replacing the World News site

3 Short Wave AudibilityAudibility reports are based on data from the total number of signals monitored. Quality is rated as follows:

5 very good4 good3 acceptable2 poor1 unacceptable

Percentage of all short wave signals scoring 3, 4 or 5


Global 85 86 86

Africa and the Middle East 84 86 87

Americas 74 76 77

Asia and the Pacif ic 83 85 85

EurAsia 88 88 88

Europe 93 93 90(a)

(a) The Europe ratings were affected by a number of factors, including propagation conditions leading to poor receptionfrom the Antwerp transmitter, and an aerial fault on 12095 kHz requiring services to be temporarily transferred

4 Capital Cities with FM PresenceMarch 2002 March 2003 March 2003

Actual Target Actual

Number of capital cities with FM presence 129 131 138

5 Staff NumbersFigures refer to the number of equivalent full-time staff in World Service Broadcasting

March 2002 March 2003 March 2003Actual Target Actual

UK based 1,086 1,299 1,290(a)

Overseas based 247 263 278

Total 1,333 1,562 1,568

(a) In the year ended 31 March 2002 and prior years, studios and associated resources were provided by a BBC supplierdivision. On 1 April 2002 this activity was integrated into World Service, resulting in an increase of 185 in equivalent full-time staff



6 Hours of Output per Member of Staff per WeekThis indicator is based on the hours of language programming produced per week and the numbers of equivalent full-time staff employed both in the UK and overseas, excluding staff involved with onlineoutput. To aid consistency, the 185 equivalent full-time staff transferred to World Service on 1 April 2002,as explained above, have been excluded


Hours 0.93 0.93 0.91

7 Revenue EarningThese figures refer to gross revenue – not net profit. They ref lect the additional revenue generated by World Service Broadcasting from sources other than the Foreign and Commonwealth Office Grant-in-Aid. They also include income generated by the BBC World Service Trust, a charitable companyassociated with BBC World Service. The BBC World Service Trust is not included within the financialstatements of BBC World Service


£m £m £m

BBC World Service 5.0 5.0 4.7

BBC World Service Trust 4.9 6.8 6.5

Total 9.9 11.8 11.2

The BBC World Service Trust figures exclude grants receivable from BBC World Service. The Trust’srevenue for 2001/02 has been restated to ref lect the Trust’s audited financial statements published in January 2003.

These figures exclude any quantification of benefits in kind, for example gaining rebroadcastingagreements with local par tners around the world, which increase BBC World Service’s audience reach at no additional cost.

The BBC World Service figure includes turnover from the BBC World Service shop of £0.7 million(2001/02 £0.6 million). The shop is operated by another BBC division and therefore this income does not appear in the BBC World Service financial statements.


BBC Board of Governors’ World Service Consultative Group Report

The Governors’ World Service Consultative Group was originally established following the 1996 BBCrestructuring to provide the Governors with independent external advice on the range and quality of World Service output. The Consultative Group aims to review World Service output in English andother languages over a three-year cycle.

In 2002/03 the Consultative Group reviewed output in English, Arabic, Hausa, Somali, Portuguese, Spanishand Chinese. This selection followed the three-year research cycle, but was also informed by the politicaldevelopments in the Middle East and the wish to review World Service output (Arabic) to that region.For each of these languages, a number of assessors were recruited by an independent market research and consultancy firm. Up to six assessors were chosen for each output category and a total of 46 reportswere received. The assessors were asked to listen to up to ten hours of output spread over one week in December 2002. The assessors’ reports were compiled during a very busy period in terms of worldnews, with the report from the UN arms inspectors in Iraq dominating the agenda.

The Consultative Group is satisfied that all the World Service output reviewed this year attracted highscores for authority and accuracy. This is particularly commendable since the week of output selected for the assessment was exceptional in terms of the world news agenda.

The Consultative Group notes that the BBC Arabic Service is an important language service performingwell in a challenging market. Recent data shows that in March 2003, during the Iraq War, usage of theArabic online site increased by 135%, to a record of over 20 million page impressions. The Group notesthat some of the scores given by the assessors are lower than the previous year, when the Arabic outputwas also reviewed by the Group. The Consultative Group urges World Service to continue with itsprogramme of improvement, notably with the aim of:+ Obtaining a wide range of opinions within its news output+ Involving listeners more in the output+ Ensuring presentation style is more contemporary and continues to be seen be as independent,

fair, impartial and authoritative+ Increasing the appeal to a broader range of age groups

The Consultative Group notes the impressive impact made by the World Service output to Africa inEnglish, Hausa and Somali, as well as the high scores this output attracted from assessors. The ConsultativeGroup believes that the World Service output to Africa has a strong educational dimension, bearing inmind its appeal across all socio-economic groups.

The Consultative Group commends World Service for achieving a significant impact in the USA in thecontext of a highly competitive media environment, with a weekly audience of 3.9 million, its highest ever.It notes that co-productions with American public radio are crucial in attracting that audience. However,it asks World Service to keep such co-productions under review to ensure that they demonstrate theBBC’s strengths of accuracy, impartiality, relevance and depth, and do not lose BBC tone and style.

The Consultative Group observes that the World Service faces difficulties in making an impact in LatinAmerica in Spanish and Portuguese. The Group is concerned that the awareness of the BBC output in the region appears to be low and agrees that high profile local partnerships are key to the delivery ofthe output both on radio and online.

The Consultative Group notes that restrictions imposed by the Chinese authorities on the distribution ofthe BBC World Service limits its impact, both on radio and online. In that context, the Consultative Groupurges World Service to develop local partnerships based on the provision of education, business, scienceand language training programmes, which the Chinese authorities are less likely to object to. The WorldService should also review the definition of the target audience for its Mandarin online site and the scopefor broadening its agenda beyond news and current affairs.

The Consultative Group notes the continuing growth in usage of the World Service English news onlinesite. In particular in March 2003, during the Iraq War, usage of the site grew to its highest level ever atover 150 million page impressions, a growth of 80% compared to the previous month. The ConsultativeGroup feels that this provides an impressive testimonial of the value of the site for a world audience.The Consultative Group believes that the site could be more actively promoted on World Service radio.

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1 Dame Pauline Neville-JonesDCMGBBC Governor (Chair)

2 Professor Monojit ChatterjiProfessor of AppliedEconomicsUniversity of Dundee

3 Bill EmmottEditor : The Economist

4 Sir Michael Perry CBEChairman, Centrica plc

5 William ShawcrossJournalist and author


BBC World Service Management Board 2002/2003

A Mark ByfordDirector BBC World Service and Global News

B Behrouz AfaghHead of EurAsia from 15 March 2003(David Morton left the BBC on 31 March 2003)

C Benny AmmarHead of Go Digital

D Alan BoothController Marketing

E Nigel ChapmanDeputy Director BBC World Service

F Mike CronkController Distribution And Technology

G Francois DelazunBBC World Service Secretary(Left the BBC on 31 May 2003, succeeded by Hugh Saxby)

H Lesley GrangerDirector Human Resources

I Phil HardingDirector English Networks and News

J Andrew HillsDirector BBC Monitoring(Chris Westcott became Director BBC Monitoring in April 2003)

K Andrew HindChief Operating Officer and Director of Finance

L Zdenka KrizmanHead of Europe

M Barry LangridgeHead of Asia and the Pacific from 7 February 2003(Elizabeth Wright left the BBC on 31 March 2003)

N Fred MartensonHead of Strategy

O Lucio MesquitaHead of Americas from 17 February 2003(Previously Jerry Timmins)

P Jerry TimminsHead of Africa and Middle East from 3 March 2003(Previously Barry Langridge)

Q Chris Westcott Head of New Media(Myra Hunt who became Acting Head of New Media in April 2003, was appointed permanently in June 2003)

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Financial review

Broadcasting The major editorial challenges in the year necessitated tight cost control to ensure that BBC World Servicereacted appropriately to world events without undermining the sound management of our finances. Iam pleased to report that, after some difficult decisions on reprioritising spend, the continuation of theadditional output and transmission commenced in 2001/02 following the events of September 11th wasfunded from within our existing funding base. We also responded with additional programming duringthe early phase of the conf lict in Iraq as the financial year drew to a close.

Within the framework of the Government’s 2000 Spending Review, Grant-in-Aid increased by £13million in 2002/03. This brought total Grant-in-Aid to £201 million, comprising £168.9 million foroperating expenditure, £5.1 million for a subscription to BBC Monitoring and £27.0 million for capital.The surplus for the year of £6.8 million (note 1a page 40) arises primarily from an excess of capitalGrant-in-Aid over depreciation and other capital charges.

A major focus for capital activity over the last three years has been the building of a new transmittersite in Oman. This site came into service on time and within budget in autumn 2002, and is alreadyproviding improved reception and coverage to large and important audiences in the Middle East, CentralAsia, Afghanistan and South Asia.

Looking forward, the Government’s 2002 Spending Review announced last July provides an averageincrease of 3.4% above RPI for each of the three years of the Spending Review period, commencing in 2003/04. This will help to ensure that BBC World Service is effectively equipped to face the fierce and growing competition in key media markets across the world.

Value for moneyBBC World Service continued its ongoing programme of increasing value for money. We were able toincrease fur ther, to 88.6%, the proportion of funding spent directly on content production and delivery,with only 11.4% spent on support functions and overheads. We aim to increase this content percentageto 91% by 2005/06, the final year of the 2002 Spending Review period. We were also able to achieveefficiency savings of £2.6 million in the year.

We continue to search for opportunities to offset costs by raising additional income in a mannerconsistent with the BBC’s editorial and commercial guidelines. Despite tough market conditions aroundthe world, external income of £4.0 million was generated in the year.

We add fur ther value to the core Grant-in-Aid through par tnerships with radio stations and internetservice providers around the world, which rebroadcast our programmes and material at no cost to BBC World Service. This enables us to fur ther expand reach without additional distribution costs.

BBC Monitoring Subscription income from official customers (including BBC World Service Broadcasting) for the financialyear 2002/03 amounted to £21.2 million which, combined with income from other sources, producedtotal revenue for BBC Monitoring of £24.3 million.

Andrew HindChief Operating Officer and Director of Finance


Statement of income and expenditure for the year ended 31 March2003 2002

Note £m £m

Grant-in-Aid 201.0 187.9Other income 23.2 23.2

Total income 1 224.2 211.1Operating expenditure 2 (216.3) (205.0)

Operating surplus 7.9 6.1Profit on disposal of a proper ty – 3.3

Surplus before interest and taxation 7.9 9.4Interest receivable 0.6 0.6

Surplus before taxation 8.5 10.0Taxation 4 – (0.2)

Surplus for the financial year 1,11 8.5 9.8Transfer to capital reserve 11 (11.5) (7.2)Transfer from revaluation reserve 11 0.8 0.8

(Deficit)/surplus for the year transferred to operating reserve (2.2) 3.4

The above results are derived from continuing operations.

Financial statements



Balance sheet at 31 March2003 2002

Note £m £m

Fixed assetsTangible fixed assets 5 134.0 123.3

Current assetsStocks 7 – 0.2Debtors 8 13.5 14.8Cash at bank and in hand 13 12.5 11.4

26.0 26.4Creditors – amounts falling due within one year 9 (13.3) (10.7)

Net current assets 12.7 15.7

Total assets less current liabilities 146.7 139.0Provisions for liabilities and charges 10 (3.9) (4.7)

Net assets 142.8 134.3

Represented byCapital reserve 128.4 116.9Revaluation reserve 5.6 6.4Operating reserve 8.8 11.0

11 142.8 134.3

The financial statements were approved by the Governors and the BBC World Service ManagementBoard on 19 June 2003 and signed on their behalf by:

Gavyn DaviesBBC Chairman

Greg DykeDirector-General, BBC

Mark ByfordDirector, BBC World Service and Global News

Andrew HindChief Operating Officer and Director of Finance, BBC World Service


Statement of total recognised gains and losses for the year ended 31 March2003 2002

£m £m

Surplus for the financial year 8.5 9.8Prior year adjustment for the adoption of FRS 17 – 0.3

Total recognised gains and losses since the previous financial year 8.5 10.1

Historical cost surplus for the year ended 31 March2003 2002

Note £m £m

Surplus before taxation 8.5 10.0

Difference between historical cost depreciation charge and actualdepreciation charge for the year calculated on revalued assets 11 0.8 0.8

Historical cost surplus before taxation 9.3 10.8

Historical cost surplus for the financial year 9.3 10.6

Reconciliation of movement in reserves for the year ended 31 March2003 2002

Note £m £m

Opening reserves as previously stated 134.3 124.2Prior year adjustment for the adoption of FRS 17 – 0.3

Opening reserves as restated 134.3 124.5Surplus for the financial year 8.5 9.8

Closing reserves 11 142.8 134.3

Cash flow statement for the year ended 31 March2003 2002

Note £m £m

Net cash inf low from operating activities 12 25.7 20.4Return on investments and servicing of financeInterest received 0.6 0.6TaxationTaxation paid (0.5) –Capital expenditure and financial investmentsPurchase of tangible fixed assets (24.8) (23.1)Proceeds from the sale of tangible fixed assets 0.1 3.3

Increase in cash 13 1.1 1.2



Statement of accounting policies

BBC World Service, funded principally by parliamentary Grant-in-Aid, is a division of the BritishBroadcasting Corporation, a body incorporated by Royal Charter.

The financial statements have been prepared in accordance with the provisions of the BBC’s Charterand Agreement. Although not mandatory, BBC World Service has chosen to follow the accounting anddisclosure provisions of the Companies Act 1985 and applicable UK accounting standards to ensure thatits financial statements are prepared on a basis consistent with that of UK companies.

BBC World Service does not produce consolidated financial statements. Although BBC World Service is technically the parent of the BBC World Service Trust, the Trust is exempt from consolidation. This isbecause the Trustees have a fiduciary duty to act in the best interests of the Trust’s beneficiaries andsubstantially all of the Trust’s income is made up of grants which are classified as restricted fundsbecause their use is specified by donors, such that BBC World Service has no direct control over, orfinancial interest in, the assets of the Trust.

The activities of the other subsidiaries and associates of BBC World Service are not material eitherindividually or in aggregate.

Basis of accountingThe financial statements are presented under the historical cost accounting convention as modified by the revaluation of cer tain plant, machinery and furniture and fittings.

IncomeGrant-in-Aid from the Foreign and Commonwealth Office is intended to meet estimated expenditure in the year but unexpended receipts for the year, within predetermined limits, are not liable to surrender.

Other income received by BBC World Service, principally BBC Monitoring subscriptions, is set out innote 1a of the financial statements.

Foreign currency translationTransactions in foreign currencies are translated into sterling at the rates of exchange ruling at the dateof the transactions.

Assets and liabilities denominated in foreign currencies are translated into sterling at the rates ofexchange ruling at 31 March. Surpluses and deficits arising from the translation of assets and liabilities at these rates of exchange, together with exchange differences arising from trading, are included in the statement of income and expenditure.

Pension costsThe BBC operates both defined benefit and defined contribution schemes for the benefit of employees.

Defined benefit schemeThe defined benefit scheme, the BBC Pension Scheme, provides benefits based on final pensionable pay.The assets of the scheme are held separately from those of the BBC group.

BBC World Service, following the provisions within FRS 17: Retirement Benefits, accounts for the schemeas if it were a defined contribution scheme. This is because it is not possible to identify the share of theunderlying assets and liabilities of the scheme relating to BBC World Service on a reliable and consistentbasis. The expenditure charge therefore represents the contributions payable in the year.

Defined contribution schemeThe amount charged as expenditure for the defined contribution scheme represents the contributionspayable by BBC World Service for the accounting period in respect of this scheme.


Operating leasesOperating lease rentals are charged on a straight-line basis over the term of the lease.

Tangible fixed assetsExpenditure on fixed assets is capitalised together with incremental and internal direct labour costsincurred on capital projects.

Depreciation is calculated so as to write off the cost or valuation, less estimated residual value, of fixedassets on a straight-line basis over their expected useful lives. Depreciation commences from the date an asset is brought into service.

The useful lives for depreciation purposes for the principal categories of assets are:

Land and buildingsFreehold land – not depreciatedFreehold and long-leasehold buildings – 50 yearsShor t-leasehold land and buildings – unexpired lease termPlant and machinery – three to 25 yearsComputer equipment – three to five yearsFurniture and fittings – three to ten years

Plant and machinery and furniture and fittings are stated at the estimated current replacement cost ofthe assets, as adjusted for remaining service potential, as at 1 April 1996, or cost if acquired subsequently,less accumulated depreciation.

Originated programme stocks and work in progress Originated programme stocks and work in progress, including those commissioned from independentproducers, are stated at cost. The full stock value is written off on first transmission.

Acquired programmes The costs of acquired programmes are written off on first transmission.

ReservesThe value of the capital reserve is equal to the net book value of fixed assets at historic cost. Therevaluation reserve ref lects the difference between this sum and fixed assets at their revalued amount.The operating reserve is the accumulated surplus of the income and expenditure account to the balancesheet date.

Grant-in-Aid is used to fund both capital and revenue expenditure and a transfer is made to or from the capital reserve equal to the movement in the historic cost net book value of tangible fixed assetsduring the year.

Statement of accounting policies


Notes to the financial statementsfor the year ended 31 March

1 Income, surplus and net assets1a Analysis by activity

Broadcasting Monitoring Total2003 £m £m £m

Grant-in-Aid 201.0 – 201.0Subscriptions – 16.1 16.1Intra BBC World Service trading (5.1) 5.1 –Other income 4.0 3.1 7.1

Total income 199.9 24.3 224.2Operating expenditure (193.4) (22.9) (216.3)

Operating surplus 6.5 1.4 7.9Interest receivable 0.2 0.4 0.6

Surplus before taxation 6.7 1.8 8.5Taxation 0.1 (0.1) –

Surplus for the financial year 6.8 1.7 8.5Transfer to capital reserve (10.7) (0.8) (11.5)Transfer from revaluation reserve 0.8 – 0.8

(Deficit)/surplus for the year transferred to operating reserve (3.1) 0.9 (2.2)

Net assets 115.9 26.9 142.8

Broadcasting Monitoring Total2002 £m £m £m

Grant-in-Aid 187.9 – 187.9Subscriptions – 15.6 15.6Intra BBC World Service trading (5.0) 5.0 –Other income 4.4 3.2 7.6

Total income 187.3 23.8 211.1Operating expenditure (182.0) (23.0) (205.0)

Operating surplus 5.3 0.8 6.1Profit on disposal of a proper ty 3.3 – 3.3

Surplus before interest and taxation 8.6 0.8 9.4Interest receivable 0.2 0.4 0.6

Surplus before taxation 8.8 1.2 10.0Taxation (0.1) (0.1) (0.2)

Surplus for the financial year 8.7 1.1 9.8Transfer to capital reserve (6.3) (0.9) (7.2)Transfer from revaluation reserve 0.8 – 0.8

Surplus for the year transferred to operating reserve 3.2 0.2 3.4

Net assets 109.1 25.2 134.3


1 Income, surplus and net assets continued1b Analysis by geographical locationBBC World Service income, operating expenditure and surplus primarily arise in the United Kingdom.

Within the total net assets of £142.8 million (2002 £134.3 million), the majority of transmission fixedassets are located overseas.

United Rest ofKingdom the world Total

2003 £m £m £m

Land and buildings 11.4 18.1 29.5Plant and machinery 15.7 59.5 75.2Fixtures and fittings 1.8 0.4 2.2Assets under construction 18.4 8.7 27.1

Total fixed assets 47.3 86.7 134.0Other net assets 8.8 – 8.8

56.1 86.7 142.8

United Rest ofKingdom the world Total

2002 £m £m £m

Land and buildings 12.9 13.1 26.0Plant and machinery 15.5 39.6 55.1Fixtures and fittings 1.6 0.4 2.0Assets under construction 9.2 31.0 40.2

Total f ixed assets 39.2 84.1 123.3Other net assets 11.0 – 11.0

50.2 84.1 134.3

2 Operating surplusThe operating surplus is stated after charging the following items:

2003 2002£m £m

Payments under operating leases:– Land and buildings 7.7 7.5– Plant and machinery 0.7 0.6– Other 0.1 –Depreciation 14.4 15.8Loss on disposal of tangible fixed assets 0.3 0.4Auditors’ remuneration – audit 0.1 0.1

Notes to the financial statements



3 Employees and remuneration3a Persons employedThe average number of persons employed (full-time equivalent) in the year was:

2003 2002Number Number

Broadcasting 1,549 1,291BBC Monitoring 508 506

2,057 1,797

In the year ended 31 March 2002 and prior years, studios and associated resources were provided atcost by a BBC supplier division. On 1 April 2002 this activity was integrated into BBC World Service,creating the Broadcast Operations business unit. This resulted in an increase of 185 in the number ofpersons employed, but no increase in overall costs.

Within the averages above, 209 (2002 163) par t-time employees have been included at their full-timeequivalent of 116 (2002 89) and 69 (2002 82) persons on guaranteed minimum contracts have beenincluded at their full-time equivalent of 14 (2002 18).

In addition to this, BBC World Service employed an average 83 (2002 70) persons on a casual basis.Their payroll costs are included in note 3b.

3b Staff costs2003 2002

£m £m

Salaries and wages 64.2 56.2Social security costs 5.3 4.7Pension costs 2.3 2.1Redundancy costs 1.4 2.4

73.2 65.4

Staff costs for 2002/03 include £6.5 million as a result of the integration of Broadcast Operations intoBBC World Service, as outlined above.

3c Management Board remuneration The members of the Management Board who served during the year are shown on page 33. On page57, the remuneration report contains more information on the remuneration policy of the BBC for theBBC World Service Management Board. The remuneration of the permanently appointed members ofthe Management Board is set out below.

2003 2002£000 £000

Management Board emoluments 1,975.5 1,964.2Employer’s pension contributions 69.9 69.1

2,045.4 2,033.3

In addition to the emoluments set out above, termination payments totalling £224,000 were made to two members of the Management Board on leaving the BBC on 31 March 2003.


3c Management Board remuneration continuedThe highest paid member of the Management Board in the year was Mark Byford, Director, BBC WorldService and Global News. The aggregate of his total emoluments to 31 March 2003 was £306,000(2002 £294,000). Following the establishment of the BBC World Service and Global News Division on 1 December 2002, one third of Mark Byford’s remuneration has been borne by BBC World Limited.Emoluments of £34,000 and pension contributions of £1,000 have been paid by BBC World Limited in 2002/03 and have been excluded from the table on page 42. As a member of the BBC’s definedbenefit scheme, Mark Byford’s total accrued annual pension at 31 March 2003 was £88,000 (2002 £75,000).

16 of the 17 permanently appointed members of the Management Board as at 31 March 2003 haveretirement benefits accruing under the BBC Pension Scheme (2002 16 members).

3d PensionsBBC Pension SchemeMany BBC World Service employees are members of the BBC Pension Scheme which provides salaryrelated pension benefits on a defined benefit basis from assets held in separate, trustee-administeredfunds.

BBC World Service, following the provisions within FRS 17: Retirement Benefits, accounts for the schemeas if it were a defined contribution scheme. This is because it is not possible to identify the share ofthe underlying assets and liabilities of the scheme relating to BBC World Service on a consistent andreliable basis.

The pension cost charged for this scheme represents contributions payable by BBC World Service,amounting to £1.6 million in the year (2002 £1.3 million).

The scheme is subject to independent valuation by a professionally qualified actuary at least every threeyears, on the basis of which the actuary cer tifies the rate of employer’s contributions. These, togetherwith the specified contributions payable by employees and proceeds from the scheme’s assets, areexpected to be sufficient to fund the benefits payable under the scheme. The most recent full actuarialvaluation of the scheme was prepared as at 1 April 2002 by Watson Wyatt, consulting actuaries, usingthe projected unit method.

At 1 April 2002 the actuarial valuation showed a surplus of £441 million and the actuarial value of theassets was sufficient to cover 109% of the benefits due to members after allowing for expected futureincreases in earnings.

Employer contributions have remained steady for a number of years. However, in order to maintain the financial health of the scheme, it has been agreed with the trustees that employer contributions will rise by 0.5% a year for three years from the current 4.5% of pensionable pay, with the first 0.5%increase taking effect from 1 April 2003. In addition, employee contributions will rise 0.5% per year from 4.5% to 6.0% over the three-year period commencing 1 April 2004.

Additional disclosure about the scheme and its financial position under FRS 17 is provided in the BBC Annual Report and Accounts that can be obtained from The Secretary, BBC, Broadcasting House,London W1A 1AA.

Other SchemesBBC World Service made payments of £0.7 million (2002 £0.8 million) into the Group Personal PensionScheme and other schemes.




4 Taxation4a Analysis of charge for the periodThe charge for the year is based on a rate of corporation tax of 30% (2002 30%).

2003 2002£m £m

Current year – UK corporation tax 0.2 0.2Adjustment in respect of previous years (0.2) –

– 0.2

4b Factors affecting the tax chargeThe BBC World Service taxation charge is based primarily on interest receivable. The tax assessed for the year is therefore significantly lower than the standard rate of corporation tax in the UK (30%),as explained below.

2003 2002Note £m £m

Surplus before taxation 8.5 10.0

Surplus before taxation multiplied by the standardrate of corporation tax in the UK of 30% (2002 30%) 2.5 3.0Effect of non-taxable external income/deductible costs (2.3) (2.8)

Current tax charge for the year 4a 0.2 0.2

4c Factors that may affect future tax chargesBBC World Service anticipates a similar tax charge in future years as Grant-in-Aid and BBC Monitoringsubscriptions, the principal components of BBC World Service’s income, are not subject to taxation.

5 Tangible fixed assetsLand and Plant and Furniture Assets under buildings machinery and fittings construction Total

£m £m £m £m £m

Cost or valuationAt 1 April 2002 56.1 118.3 4.2 40.2 218.8Additions 1.0 5.3 0.4 18.8 25.5Brought into service 5.0 26.5 0.4 (31.9) –Disposals – (1.7) (0.1) – (1.8)

At 31 March 2003 62.1 148.4 4.9 27.1 242.5

DepreciationAt 1 April 2002 30.1 63.2 2.2 – 95.5Charge for the year 2.5 11.3 0.6 – 14.4Elimination in respect of disposals – (1.3) (0.1) – (1.4)

At 31 March 2003 32.6 73.2 2.7 – 108.5

Net book valueAt 31 March 2003 29.5 75.2 2.2 27.1 134.0

At 31 March 2002 26.0 55.1 2.0 40.2 123.3


5 Tangible fixed assets continuedBBC World Service’s plant and machinery and furniture and fittings were revalued at 1 April 1996 basedon the estimated current replacement cost of the assets, adjusted for service potential. Following theintroduction of FRS 15:Tangible Fixed Assets, BBC World Service has retained these revalued assets attheir valuation as adjusted for depreciation. BBC World Service does not plan to revalue these assets on an ongoing basis.

Historical cost basisThe net book value of tangible fixed assets included in the above table determined on an historical costbasis is as follows:

Plant and Plant and Furniture Furnituremachinery machinery and fittings and fittings

2003 2002 2003 2002£m £m £m £m

Cost 203.1 173.0 7.6 6.9Depreciation (133.5) (124.3) (5.4) (4.9)

Net book value 69.6 48.7 2.2 2.0

Included within fixed assets is £24 million at cost relating to a relay station in Thailand. These assets aretransferable to the Royal Thai Government in return for the payment of a nominal sum. BBC WorldService will retain the right to repurchase the assets, should the operation cease, for a similar nominalsum. The use of these assets is not affected by this transaction and therefore they will continue to becarried at cost less attributable depreciation in the balance sheet.

Land and buildings at net book value comprise:

2003 2002£m £m

Freeholds 15.4 15.7Shor t-leaseholds 14.1 10.3

29.5 26.0

The members of the Management Board are satisfied that there has been no impairment in thecarrying values of freehold properties at the balance sheet date.

Land and buildings include freehold land at a cost of £4.2 million (2002 £4.2 million) which is notdepreciated.




6 InvestmentsBBC World Service holds the following interests in companies, at cost:

Holding of issuedordinary shares

%

SubsidiariesBBC East Asia Relay Company Limited (incorporated in Hong Kong) 100BBC Radiocom (Bulgaria) EOOD (incorporated in Bulgaria) 100BBC Radiocom (Hungary) KFT (incorporated in Hungary) 100BBC Radiocom (Praha) s.r.o. (incorporated in the Czech Republic) 100BBC Radiocom (Slovakia) s.r.o. (incorporated in the Slovak Republic) 100BBC Romania SRL (incorporated in Romania) 100BBC Polska Sp. z.o.o. (incorporated in Poland) 100BBC do Brazil Limitada (incorporated in Brazil) 100BBC Radiocom Deutschland GmbH (incorporated in Germany) 100BBC Croatia d.o.o. (incorporated in Croatia) 100BBC World Service Trust *

AssociatesCaribbean Relay Company Limited (incorporated in Antigua) 45Multimedia Ventures Limited (incorporated in Great Britain) 50WRG-FM SA (incorporated in Switzerland) 40

*The BBC World Service Trust is a charitable company limited by guarantee, of which the BBC is the sole member.

Although BBC World Service is technically the parent of the BBC World Service Trust, the Trust isexempt from consolidation. This is because the Trustees have a fiduciary duty to act in the best interestsof the Trust’s beneficiaries and substantially all of the Trust’s income is made up of grants which areclassified as restricted funds because their use is specified by donors, such that BBC World Service hasno direct control over, or financial interest in, the assets of the Trust.

The results and balances of the other companies listed above are not material to BBC World Serviceeither individually or in aggregate.

7 Stocks2003 2002

£m £m

Work in progress – programmes – 0.2

8 Debtors2003 2002

£m £m

Receivable within one yearTrade debtors 5.4 4.3Amounts owed by BBC Group 2.5 5.1Amounts owed by associates 0.2 0.3Amounts owed by subsidiaries 0.6 0.8VAT recoverable 1.4 1.9Other debtors 0.3 0.4Prepayments 3.1 2.0

13.5 14.8


9 Creditors2003 2002

£m £m

Amounts falling due within one year

Trade creditorsProgramme creditors 0.2 0.4Salaries and wages 4.0 2.5Other trade creditors 2.3 2.4

6.5 5.3

Other creditorsFixed asset creditors 1.4 0.7Corporation tax 0.2 0.7Accruals and deferred income 5.2 4.0

6.8 5.4

13.3 10.7

Creditors payment policyIt is the BBC’s policy to comply with the CBI prompt payment code in relation to the payment ofsuppliers, provided that the supplier is complying with the relevant terms and conditions of theircontract. BBC World Service monitors compliance against the terms of this code. BBC World Service’snumber of creditor days outstanding at 31 March 2003 was 17 (2002 16).

10 Provisions for liabilities and chargesDilapidations Restructuring Total

£m £m £m

At 1 April 2002 3.6 1.1 4.7Utilised during the year – (1.0) (1.0)Released during the year – (0.1) (0.1)Charge for the year – 0.3 0.3

At 31 March 2003 3.6 0.3 3.9

The dilapidations provision represents a liability to restore Bush House to its original condition on thefuture move of BBC World Service to Broadcasting House in London W1.

11 ReservesCapital Revaluation Operatingreserve reserve reserve Total

£m £m £m £m

At 1 April 2002 116.9 6.4 11.0 134.3

BroadcastingSurplus for the financial year – – 6.8 6.8Revaluation reserve transfer – (0.8) 0.8 – Capital reserve transfer 10.7 – (10.7) –

10.7 (0.8) (3.1) 6.8

BBC MonitoringSurplus for the financial year – – 1.7 1.7Capital reserve transfer 0.8 – (0.8) –

0.8 – 0.9 1.7

At 31 March 2003 128.4 5.6 8.8 142.8




12 Reconciliation of operating surplus to net cash inflow from operating activities

2003 2002£m £m

Operating surplus 7.9 6.1Loss on disposal of tangible fixed assets 0.3 0.4Depreciation 14.4 15.8Decrease in stocks 0.2 –Decrease/(increase) in debtors 1.3 (4.8)Increase in creditors 2.4 2.4(Decrease)/increase in provisions (0.8) 0.5

Net cash inf low from operating activities 25.7 20.4

13 Analysis of changes in net funds2003 2002

£m £m

Cash at bank and in hand at the beginning of the year 11.4 10.2Increase in cash 1.1 1.2

Cash at bank and in hand at the end of the year 12.5 11.4

BBC Monitoring’s cash at bank and in hand of £9.2 million includes amounts arising as a result ofcharging a return on capital employed to stakeholder customers. Until 31 March 2003 there werelimitations placed upon the use of these funds, such that they accumulated within the cash balance.However, it has now been agreed with HM Treasury that these funds can be utilised from 1 April 2003.

14 Commitments14a Contracts placed for future expenditure

2003 2002£m £m

Fixed asset additions 15.5 19.3Programme acquisitions and spor ts rights 0.1 0.3Other 1.1 1.5

16.7 21.1

14b Other financial commitmentsBBC World Service has entered into contracts with VT Merlin Communications Limited for a period of ten years commencing March 1997 for the provision of transmission services. The contractual chargefor the year ended 31 March 2003 was £31.5 million (2002 £30.6 million).

14c Operating leasesOperating lease commitments payable in the following year, analysed according to the period in whichthe lease expires:

Land and Land and Plant and Plant andbuildings buildings machinery machinery

2003 2002 2003 2002£m £m £m £m

Within one year 0.4 0.2 – 0.1In two to five years 6.9 7.2 2.3 0.3After five years 0.4 – – –

7.7 7.4 2.3 0.4


15 Contingent liabilitiesIn the normal course of business, BBC World Service has a number of contingent liabilities arising fromlitigation. BBC World Service provides for an estimate of probable damages and costs.

16 Related party transactionsThe related par ty transactions of BBC World Service have been presented in accordance with FRS 8: Related Party Disclosures.

16a Transactions with subsidiariesAt 31 March 2003 BBC World Service Trust owed BBC World Service £0.6 million (2002 £0.8 million)in respect of operating expenses incurred on its behalf.

BBC World Service made grants of £0.4 million (2002 £0.4 million) during the year to the BBC WorldService Trust, towards education projects and general management and administration costs.

16b Transactions with associatesAt 31 March 2003 the Caribbean Relay Company owed BBC World Service £0.2 million (2002 £0.3 million), being funds transferred in respect of working capital requirements.

16c Transactions with key managementDuring the year there were no disclosable transactions with key management.

16d Other transactionsDuring the year BBC Group charged BBC World Service net costs of £136.4 million (2002 £131.3 million) in respect of operating costs. At 31 March 2003 BBC World Service was owed £2.5 million (2002 £5.1 million) by BBC Group.



Reports on compliance and regulatory matters

Responsibility for BBC World Service is vested in the BBC Board of Governors appointed under theBBC Royal Char ter. The Governors have clear responsibilities under the BBC’s Charter to ensure thatBBC World Service operates responsibly and follows all applicable regulations and codes of practice.They must satisfy themselves that BBC World Service:

+ complies with all legal obligations+ has an appropriate management structure+ maintains adequate controls to protect its assets+ adheres to the BBC’s own guidelines and codes of practice

This and the following pages contain reports on BBC World Service’s policies, procedures andcompliance as follows:

1 Statement of Board of Governors and BBC World Service Management Boardresponsibilities for the preparation of the financial statements

2 Report of the independent auditors to the Governors of the BBC3 Governors’ report on BBC World Service Trading Protocols4 Risk and control processes5 Remuneration report6 People7 Political donations and gifts

1 Statement of Board of Governors and BBC World Service Management Boardresponsibilities for the preparation of the financial statements

The Governors and Management Board are required by the BBC’s Charter and Agreement and theFinancial Memorandum with the Foreign and Commonwealth Office to prepare financial statements for each financial year which give a true and fair view of the state of affairs of BBC World Service andof its income and expenditure for that period. In preparing those financial statements, the Governorsand Management Board are required to:

+ select suitable accounting policies and then apply them consistently+ make judgements and estimates that are reasonable and prudent+ state whether applicable accounting standards have been followed and disclose and explain

any material depar tures in the financial statements+ prepare the financial statements on a going concern basis unless it is inappropriate to do so

In addition, the Governors and Management Board have voluntarily decided to comply with theaccounting and disclosure provisions of the Companies Act 1985 and, where applicable, of the FinancialServices Authority Listing Rules.

The Governors and Management Board are also responsible for keeping adequate accounting recordsand taking such steps as are reasonably open to them to safeguard the assets of BBC World Service and to prevent and detect fraud and other irregularities.

2 Report of the independent auditors to the Governors of the British BroadcastingCorporation (BBC)

We have audited the financial statements on pages 35 to 49.

This report is made solely to the BBC’s Governors, as a body, in accordance with the Royal Charter for the continuance of the BBC which came into force on 1 May 1996 (the Charter) and the FinancialMemorandum with the Foreign and Commonwealth Office. Our audit work has been undertaken so that we might state to the BBC’s Governors those matters we are required to state to them in anauditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the BBC and the BBC’s Governors as a body, for our audit work, for this report, or for the opinions we have formed.


2 Report of the independent auditors to the Governors of the British BroadcastingCorporation (BBC) continued

Respective responsibilities of the Governors and BBC World Service Management Board and auditorsThe Governors and Management Board are responsible for preparing the Annual Review including, asdescribed above, the financial statements in accordance with applicable United Kingdom law andaccounting standards. Our responsibilities as independent auditors are established in the United Kingdomby statute, by the Auditing Practices Board, our profession’s ethical guidance and, in accordance with theterms of our appointment, the Companies Act 1985.

We report to you our opinion as to whether the financial statements give a true and fair view and areproperly prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion,the financial review on page 34 is not consistent with the financial statements, if BBC World Service hasnot kept proper accounting records, if we have not received all the information and explanations werequire for our audit, or if information specified by law regarding Management Board remuneration andtransactions with BBC World Service is not disclosed.

We read the other information contained in the Annual Review, including the corporate governancestatement, and consider whether it is consistent with the audited financial statements. We consider theimplications for our report if we become aware of any apparent misstatements or materialinconsistencies with the financial statements.

In addition to our audit of the financial statements, the Governors and Management Board haveinstructed us to review their corporate governance statement as if BBC World Service were required to comply with the Listing Rules of the Financial Services Authority in relation to these matters. Wereview whether the statement on pages 52 to 56 ref lects BBC World Service’s compliance with theseven provisions of the Combined Code specified for audit review by those rules, and we report ifit does not. We are not required to form an opinion on the effectiveness of BBC World Service’scorporate governance procedures or its internal controls.

Basis of audit opinionWe conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board.An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in thefinancial statements. It also includes an assessment of the significant estimates and judgements made bythe Governors and Management Board in the preparation of the financial statements, and of whetherthe accounting policies are appropriate to BBC World Service’s circumstances, consistently applied andadequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurancethat the financial statements are free from material misstatement, whether caused by fraud or otherirregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentationof information in the financial statements.

OpinionIn our opinion the financial statements give a true and fair view of the state of affairs of BBC WorldService at 31 March 2003 and of the surplus of BBC World Service for the year then ended and havebeen properly prepared in accordance with the provisions of the BBC’s Charter and Agreement, theFinancial Memorandum and the provisions of the Companies Act 1985 as if those provisions had appliedto these financial statements.

KPMG LLPChartered Accountants, Registered Auditor, London 19 June 2003




3 Governors’ report on BBC World Service Trading ProtocolsBBC World Service is responsible for commissioning and scheduling its own programmes and for makingprogrammes for its language services, but purchases English language programme-making and technicaland support services from other divisions of the BBC (the Supplier Divisions). BBC World Service alsoreceives services from and supplies services to the BBC’s commercial subsidiaries (the Subsidiaries).

It was agreed by a joint Foreign and Commonwealth Office (FCO)/BBC World Service Working Groupthat the BBC would draw up guidelines to govern the trading relationship between BBC World Serviceand other par ts of the BBC, in order to ensure that BBC World Service maintains its distinctive voiceand to preserve the clear separation between Grant-in-Aid and licence fee income. These TradingProtocols were approved by the Governors’ Fair Trading Compliance Committee (FTCC) in 1997.Each of the Supplier Divisions then drew up detailed agreements with BBC World Service, specifying:

+ the services to be provided+ criteria to ensure the quality of the services+ the cost of the services

The FTCC is responsible for monitoring and reviewing compliance with the Trading Protocols. TheFTCC receives regular reports from management on the effectiveness of the systems and procedures in place to ensure compliance with the Trading Protocols.

KPMG LLP (the external auditors) have reviewed a summary of the value of transactions and therelated cash f lows which have taken place during the year between BBC World Service and the SupplierDivisions and Subsidiaries. KPMG LLP have reported to the Governors that, in their opinion, theinformation contained in the summary of transactions for the year ended 31 March 2003 has beenaccurately extracted from the books and records of BBC World Service and the Supplier Divisions andSubsidiaries, and has been properly prepared on the bases of cost allocation and apportionmentmethods set out in the agreements between BBC World Service and the Supplier Divisions andSubsidiaries and, on this basis, there has been no material cross-subsidy between Grant-in-Aid andlicence fee funds or between Grant-in-Aid and the BBC’s commercial subsidiaries.

Governors’ statement on BBC World Service Trading ProtocolsFollowing regular reports to the FTCC by the Head of Fair Trading, and internal and external auditors,the Governors are satisfied that:

+ the Trading Protocols ref lect the requirements of the FCO/BBC World Service Working Group+ agreements are in place which are consistent with the Trading Protocols+ there has been no material cross-subsidy between Grant-in-Aid and licence fee funds or between

Grant-in-Aid and the BBC’s commercial subsidiaries

4 Risk and control processesThe BBC, including BBC World Service, has an obligation to apply the highest standards of corporategovernance.

BBC World Service follows the seven principles of public life set out in the Nolan Committee reports on Standards in Public Life.

The Combined Code, issued by the London Stock Exchange in June 1998, sets out principles ofgood governance. BBC World Service voluntarily complies with the Combined Code to the extent it is applicable. The requirements of the Combined Code apply to BBC World Service with the following exceptions:

+ those requirements relating to shareholders BBC World Service is not accountable to external shareholders. Rather, through the stewardship of the Governors, it is accountable to the Foreign and Commonwealth Office, to Parliament and totaxpayers.


4 Risk and control processes continued+ those requirements relating to non-executive directors, remuneration and audit committees

The Governors consider that BBC World Service should comply with the Combined Code in a mannerwhich is common practice for an entity whose parent is complying with it. Hence the Governors donot consider it appropriate for BBC World Service to have separate non-executive directors orremuneration and audit committees from those established by the BBC, or to disclose the remunerationof the members of the BBC World Service Management Board, except to the extent that this isrequired by the Companies Act 1985.

Details of how BBC World Service has applied the remuneration principles are covered separatelywithin the remuneration report on page 57.

Board structureThe structure of the BBC World Service Management Board is shown on page 33. As explained above,BBC World Service does not have any non-executive directors. However, the Management Board isrepresented on the BBC’s Executive Committee and is accountable to the Governors who constitutethe members of the Corporation and act as trustees for the public interest.

The Governors are appointed by the Queen in Council. They are appointed for a term of four yearsand are independent of BBC executive management. A register of interests of the Governors ismaintained and may be inspected by written application to the Secretary of the BBC.

The Board of Governors refers some matters relevant to BBC World Service to its sub-committees as follows:

+ Audit Committee+ Fair Trading Compliance Committee+ Remuneration Committee

The Governors’ World Service Consultative Group also provides the Governors with independentexternal advice on the range and quality of BBC World Service output.

The Governors are supported by the Governance and Accountability depar tment.

The BBC World Service Management Board meets every two weeks. Other members ofmanagement attend as required. A formal schedule of matters is reserved for Management Boarddecisions. This includes:

+ considering management structure and senior management responsibilities+ agreeing membership and terms of reference of board committees and task forces and receiving

minutes, reviewing decisions taken and deciding action on recommendations+ agreeing contracts with major suppliers+ deciding significant staff and industrial relations issues+ agreeing business strategy+ approving financial statements+ approving annual budgets, subject to final approval by the Governors+ agreeing a code of ethics and business practice, establishing an overall framework for proper controls

The Management Board members have access to the advice and services of the BBC World ServiceSecretary who is responsible for ensuring that Board procedures are followed.

Relationship with Foreign and Commonwealth Office (FCO)BBC World Service Broadcasting is primarily funded by parliamentary Grant-in-Aid received through theFCO. BBC Monitoring is funded by stakeholder subscriptions. The relationship between the FCO andBBC World Service is defined in the FCO/BBC World Service Broadcasting Agreement which sets outthe aims and objectives of BBC World Service and provisions for performance assessment. The financialarrangement with the FCO is set out in the FCO/BBC World Service Financial Memorandum.




4 Risk and control processes continuedAccountability and internal controlFinancial reporting and going concernThe respective responsibilities of the Governors, BBC World Service Management Board and theexternal auditors are set out on page 51.

A review of the financial position of BBC World Service is included on page 34. This, together with thedirector’s overview on pages 4 to 5, provides an assessment of BBC World Service’s performance andcurrent position.

The going concern basis has been adopted in the preparation of the financial statements as theGovernors and Management Board believe that BBC World Service will continue to receive adequateresources to continue its operations for the foreseeable future.

Internal controlThe BBC World Service Management Board is responsible for maintaining an adequate system ofinternal control and for reviewing its effectiveness. Such a system is designed to manage rather thaneliminate the risk of failure to achieve business objectives and can provide only reasonable, and notabsolute, assurance against material misstatement or loss.

The Governors and Management Board consider that there is an ongoing process for identifying,evaluating and managing the significant risks faced by BBC World Service. This process has been in place for the year ended 31 March 2003 and up to the date of approval of this report and financialstatements. As par t of the BBC’s overall risk management process it has been reviewed by theGovernors and BBC Executive Committee and accords with the guidance set out in the ICAEW’sguidance for directors Internal Control: Guidance for directors on the Combined Code.

The key control procedures operating during the year are described below:

+ risk managementThe Management Board is responsible for identifying and managing risk on an ongoing basis. BBCWorld Service has a formally constituted Internal Control Committee (ICC), comprising the membersof the Management Board, World Service Financial Controller and a representative of BBC InternalAudit. The ICC meet three times a year to update their assessment of BBC World Service’s exposureto risk, and the extent to which these risks are controlled.

+ monitoring of controlsBBC Internal Audit undertakes testing of control systems and compliance with core businessprocesses, based on a regularly updated assessment of key risks and issues facing BBC World Service.The results of testing are reported to each meeting of the Governors’ Audit Committee, whichscrutinises the operation of controls throughout the year.

+ business unit controlsManagement have defined the controls and procedures with which each business unit is required tocomply. Key controls over major business risks include performance review and exception reporting.Reviews by BBC Internal Audit monitor the operation of controls.


4 Risk and control processes continued+ business continuity

During the year BBC World Service has reviewed broadcasting contingency arrangements, includingthose in respect of overseas activities. An updated contingency plan has been put in place which willprovide improved back-up arrangements. Fur ther work is being carried out to improve resilience inoverseas offices.

+ computer systemsBBC World Service has established controls and procedures over the security of data held oncomputer systems. Arrangements are in place for computer processing to continue and data to be retained in the event of failure of BBC World Service’s own data processing facility.

+ controls over outsourced transaction processingThe majority of BBC World Service’s financial transaction processing is outsourced to a servicecompany, Medas, which is independent of the BBC. The Chief Operating Officer and Director ofFinance has established monitoring procedures to review the performance of Medas on a regularbasis. These include regular review by BBC Internal Audit in a programme of work based on acontinuing assessment of key risks and issues.

+ whistle-blowingThe BBC has a ‘whistle-blowing’ policy. This policy facilitates the anonymous communication to the BBC of any incident in which there is a suspicion that there has been wrongdoing. The process is administered by an independent external company to ensure anonymity. Each reported incident is notified to the BBC Head of Internal Audit who ensures that every incident is investigated, aresponse communicated and action taken as appropriate.

+ financial reporting and controlsBBC World Service has a comprehensive budgeting system with an annual budget approved by the Governors, prepared in line with the BBC World Service Three Year Plan. Monthly financialinformation is reported against budget figures, with corrective action being taken by the ManagementBoard as appropriate. All capital expenditure over cer tain upper thresholds must be approved by a BBC investment approval committee and, in some cases, by the FCO and HM Treasury.

Governors’Audit CommitteeMatters relating to BBC World Service are also considered by the Governors’ Audit Committee.The Committee meets at least four times each year, and is charged with:

+ reviewing the effectiveness of internal control+ approving and monitoring the BBC Internal Audit work plan+ considering issues arising from external and internal audit work+ reviewing management’s response to internal control issues+ approving the external audit fee+ discussing with the external auditors their audit strategy and plans+ reviewing the independence of the external auditors, specifically considering and approving

any non-audit services+ reviewing the performance and effectiveness of the external auditors+ reviewing the external auditors’ reports+ reviewing and approving the financial statements.




4 Risk and control processes continuedIn reviewing the financial statements of BBC World Service, the Committee considers any significantissues and the appropriateness of accounting policies adopted in relation to significant or unusualtransactions where more than one policy may apply.

The Committee is comprised exclusively of Governors of the BBC. Members of BBC executivemanagement attend meetings by request of the Committee.

The Committee has considered the recommendations contained in the report of the FinancialReporting Council (issued January 2003), the Smith Report, and have implemented the necessarymeasures to ensure that the BBC fully meets those recommendations.

Independence of external auditorsBoth the Governors’ Audit Committee and the external auditors themselves have safeguards in place to avoid the possibility of the auditors’ objectivity and independence being compromised.

The Committee regularly reviews the independence of the external auditors, currently KPMG LLP.The Committee holds discussions with the external auditors without management being present.The Committee is notified of all non-audit services proposed to be commissioned from KPMG LLP and reviews the level of non-audit fees paid to them. Any significant consulting work is put out to competitive tender. The external auditors are specifically excluded from being considered for cer tain types of work, where the effect could be to prejudice their ability to express an independentand objective opinion. Recruitment from KPMG LLP into any senior management position requires the prior approval of the Committee.

Fair trading compliance proceduresThe BBC’s fair trading obligations are embodied in its Fair Trading Commitment, compliance with whichis scrutinised throughout the year by the Governors’ Fair Trading Compliance Committee (FTCC). TheCommittee is advised directly by independent auditors commissioned and managed by the Governanceand Accountability depar tment, and by the BBC’s Head of Fair Trading and Head of Internal Audit, ifnecessary without the mediation of BBC management. All staff with commercial responsibilities arerequired by the Committee to be trained in the BBC’s fair trading policies.

The management of the BBC’s fair trading arrangements is regularly tested by the British StandardsInstitute and these arrangements have been accredited with the ISO 9001:2000 quality standard.The last assessment conducted in November 2002 confirmed that the procedures are continuing to operate effectively.

Statement of compliance with the Combined Code of Best PracticeBBC World Service has complied throughout the year ended 31 March 2003 with the specific provisionsin section 1 of the Combined Code with the exception of those provisions relating to non-executivedirectors, remuneration and audit committees and shareholder requirements which, as discussed earlier,are not applicable to BBC World Service.


5 Remuneration reportThis report explains the remuneration policy of the BBC for the BBC World Service ManagementBoard. Details of Management Board remuneration are included within Note 3c to the financialstatements on page 42.

The remuneration policy for members of the BBC Executive Committee, including the remunerationpackage for the Director, BBC World Service and Global News, is set by the Remuneration Committeewhich is a sub-committee of the Board of Governors. The remuneration of other members of theManagement Board is recommended by the Director and approved by the BBC Director-General andthe BBC Director of Human Resources and Internal Communications.

The Director assesses the performance of the Management Board members before recommendingtheir annual remuneration and bonus awards. BBC World Service’s Human Resources Director providestechnical support to the Director in this respect, but has no input into decisions affecting her ownremuneration.

The BBC aims to ensure that the packages offered to Management Board members:

+ enable BBC World Service to attract, retain and motivate high-calibre executives+ remunerate individuals fairly for individual responsibility and contribution, while providing an element

of performance-related pay, ref lecting the underlying performance of BBC World Service+ take into account salary policy within the rest of the BBC and the relationship that should exist

between the remuneration of Management Board members and that of other employees

The remuneration arrangements for Management Board members include the following components:

Basic salaryBasic salaries are reviewed in August each year, taking into account external market levels and internalcomparisons as well as the individual’s responsibilities and performance. The basic salary is paid as afixed sum monthly in cash.

Annual bonusManagement Board members are eligible to receive a bonus of up to 10% of basic salary for meetingcer tain performance targets. Qualitative and quantitative objectives are set at the beginning of thefinancial year, and performance is reviewed at the end of the year. As a member of the BBC ExecutiveCommittee, the Director, BBC World Service and Global News, par ticipates in a performance-basedannual bonus scheme under which payments may be awarded up to a maximum level of 30% of basesalary. Bonuses are ref lected in the financial statements on an accruals basis for the performance periodunder review. Actual payments are made in August each year.

Benefits In addition to salary and bonus, the main contractual benefits provided to Management Board members are a car, private health insurance, pension and life insurance. The Director is also entitled to a car fuel allowance.

PensionsManagement Board members are eligible to par ticipate in the BBC Pension Scheme, which providessalary-related pension benefits on a defined benefit basis, with an accrual rate of 1/60th of final salaryper year of service, subject to the Inland Revenue earnings cap where appropriate. Only basic salary is pensionable. The scheme provides for early retirement on medical grounds and life insurance cover of four times salary.




6 PeopleBetween May and November 2002, more than 700 BBC World Service staff, including staff based inPrague, Delhi, Nairobi and Moscow, made their voices heard in Just Imagine workshops, the BBC’s largestever staff consultation. This was par t of Making It Happen, the cultural change programme to transformthe BBC into the world’s most creative organisation. A BBC World Service action plan has now beenannounced, alongside the overall BBC action plan, to address the key issues raised by staff.

After gaining Investors in People (IiP) accreditation in 2000, BBC World Service Broadcasting successfullyreached IiP standards against all criteria in a post-recognition review undertaken in June 2002. BBCWorld Service was specifically commended for being fully committed to developing its people in orderto achieve its aims and objectives. BBC Monitoring also gained IiP accreditation in April 2002.

Recruitment, training and developmentThe attraction of talent from around the world is fundamental to the continued success ofBBC World Service. Over 230 recruitment campaigns have been run during the year to attract the best journalistic talent.

An improved induction process has been introduced to provide additional support to new staff andtheir families. New joiners now attend Upfront, the new four-day induction programme for all new BBC staff.

BBC World Service invested £2.3 million in training and development during the year. Staff in all areashave access to a growing range of opportunities through coaching, courses, workshops, online learningand secondments. Additional investment was made in the year to support a series of secondments from BBC World Service to high profile areas of BBC News.

Employee relations and communicationBBC World Service has a system of regular liaison meetings with the NUJ (National Union ofJournalists) and BECTU (Broadcasting Enter tainment Cinematograph and Theatre Union).

BBC World Service par ticipated in the 2002 BBC annual independent survey of staff opinion to assessthe quality of internal communications. The survey confirmed that the system of core briefing is strongin BBC World Service with almost 80% of staff receiving a face-to-face briefing from their manager eachmonth. Of these, 91% felt they were able to ask questions or raise issues or concerns at these briefings.Overall, 73% of those surveyed felt well informed and 76% felt the information provided was credible.

Health and safetyThe events of the year, including the conf lict in Iraq, again made it essential to ensure that adequate and timely safety training was provided to all staff deployed into hostile environments.

DiversityBBC World Service is committed to continuing to develop a diverse workforce which is representativeof the audience it serves.

Proportion of people from ethnic minoritiesA comprehensive diversity action plan, developed with the trade unions, includes a number of initiativesto encourage the greater representation of minority ethnic groups at senior levels, including a speciallytailored development programme.


6 People continuedThe composition of the workforce of BBC World Service ref lects the multi-lingual nature of itsbroadcasting and therefore exceeds the BBC’s targets. As these targets had already been exceeded,the aim for the year was, as a minimum, to maintain the proportion of ethnic minorities in the BBC World Service workforce and to increase representation at senior levels.

BBC groupAt 31 At 1 target for

March 2003 April 2002 December 2003% % %

Staff working in the United Kingdom 25.8 25.4(1) 10

Senior managers working in the United Kingdom 7.3 5.0 4

(1)On 1 April 2002, 185 Broadcast Operations equivalent full-time staff were transferred into BBC WorldService, 6.8% of whom were ethnic minority staff. The impact of the transfer was to reduce the overallpercentage of ethnic minority staff to 25.4% from the 27.8% previously reported at 31 March 2002.During the year this percentage has risen to 25.8%.

People with disabilitiesThe number of BBC World Service staff declaring a disability at 31 March 2003 is 26, the same numberas in the previous year. The recruitment of more disabled people to BBC World Service remains achallenge, along with the rest of the BBC. A series of seminars was held in the year to improve theawareness of managers about disability.

7 Political donations and giftsBBC World Service does not make political donations.

The Financial Memorandum permits BBC World Service to make gifts of equipment and services.Government accounting guidelines on gifts must be followed with Foreign and Commonwealth Office(FCO) approval required for gifts of a value exceeding £10,000. Gifts of cash, of whatever value, cannotbe made without the prior agreement of the FCO. No gifts of equipment, services or cash were madeduring the year.



Further information

BBC World ServiceBush House, Strand, London WC2B 4PH, UKTelephone +44 (0)20 7240 3456Fax +44 (0)20 7557 1258E-mail [email protected] www.bbc.co.uk/worldservice

Radio Schedules and FrequenciesFor information visitwww.bbc.co.uk/worldservice/schedules

If you have any comments or suggestions aboutBBC World Service programmes in any language,or would like fur ther details about how toreceive them, please contact Audience Relationsat the above address. Listeners in English can alsoair their views in the Write On programme.E-mail [email protected]

BBC On Air NetworkTo keep you up-to-date with our schedules and frequencies, BBC World Service and BBCOn Air magazine now offer a free e-mail servicecalled BBC On Air Network. You can choose e-mail updates on topics such as sport, science,world affairs and ar ts each month. We will also send you scheduling information to keepyou in touch with all that’s new from the World Service. Joining is simple. Just [email protected]

BBC MonitoringCaversham Park, Reading RG4 8TZ, UKTelephone +44 (0)1189 486 000Fax +44 (0)1189 462 927E-mail [email protected] www.monitor.bbc.co.uk

BBC World Service Press Office – mediaenquiries including BBC MonitoringTelephone +44 (0)20 7557 2941Fax +44 (0)20 7557 1912

BBC On Air – international magazine andprogramme guideTelephone +44 (0)20 7557 2211E-mail [email protected] bbconair.com

BBC Focus on Africa magazineTelephone +44 (0)20 7557 2906E-mail [email protected] www.bbc.co.uk/worldservice/focus

BBC English – information on learning Englishmaterials radio and onlineTelephone +44 (0)20 7557 1200Fax +44 (0)20 7557 1311E-mail [email protected] www.bbc.co.uk/learningenglish

BBC World Service ShopThe BBC World Service Shop and InformationCentre at Bush House sells an exclusive range ofWorld Service gift items, along with BBC books,videos, audio cassettes and a range of short waveradios. Information on BBC radio and televisionprogrammes is available. There is a mail orderand online shopping service for the UK only.Telephone +44 (0)20 7557 2576Fax +44 (0)20 7240 4811E-mail [email protected] www.bbcshop.com

BBC Training and Development, World ServiceTelephone +44 (0)20 7557 2200Fax +44 (0)20 7497 0288E-mail [email protected]

BBC World Service TrustTelephone +44 (0)20 7557 2462/3Fax +44 (0)20 7379 1622E-mail [email protected] www.bbc.co.uk/worldservice/trust

Annual Review onlineYou can access a version of the BBC WorldService Annual Review 2002/2003 online atwww.bbc.co.uk/worldservice/aboutus

This Report is printed on Core Silk. Pulps usedin the production of this paper are ElementalChlorine Free (ECF) and are sourced fromsawmill residues, forest thinnings and sustainableforests. The paper mill that produces Core Silkhas ISO 14001 Accreditation. All inks andvarnishes are soya-based and are 100% free ofmineral oils and harmful emissions from volatileorganic compounds. A water-based coating hasbeen used on the inner and outer cover.

Picture CreditsFront Cover Iraq – Getty Images Inset pictures Loya Jirga – AP

Kofi Annan – BBC

Page 2 Afghanistan – Reuters Iraq – Getty Images

Page 3 Afghanistan – APPage 4 Aung San Suu Kyi –

ReutersCommonwealthGames – PA

Page 5 Ear th Summit – AP Nigeria – Reuters

Pages 6-7 John Simpson –NetworkPhotographersRageh Omaar – BBCClive Myrie – BBCPaul Wood – BBCLyse Doucet – Pixsil

Page 8 Radio – APSaddam – NetworkPhotographers

Page 9 Hans Blix – GettyImages Tony Blair – BBC

Page 10 Demonstration –Getty Images

Page 11 Kuwait – PAJordan – ReutersKuwait – PAIraq – Reuters

Page 12 Loya Jirga – APAshraf Ghani –Reuters

Page 13 Afghanistan – AP Page 14 Kofi Annan – BBCPages 16-17 Caversham Park –

Peter Marlow/MagnumPhotosBush House – HultonGettyRuga Me Pisha – BBCWorld Service Trust

Pages 18-19 World Cup winners –Getty Images

Page 21 BBC Monitoring –Peter Marlow/MagnumPhotosMoscow siege – PA

Pages 22-23 BBC Monitoring –Peter Marlow/Magnum Photos

Page 24 BBC World ServiceTrust

Page 25 Africa Live! – BBCSolar transmitter –BBC

Pages 26-27 BBC World ServiceTrust

Pages 32-33 Bill Robinson

Designed and produced by Fitch:London. Printed by Perivan White Dove.

Mnoho hlasu –jeden svet

Vel’a hlasov, jeden svet

Codad Badan, Duni Keli ah

Muchas voces un solo mundo

SAUTI NYINGI,DUNIA MOJA

Tek dünya, çok ses

Muitas vozes, um mundo só

Isi imwe, amajwi menshi

VELIKO GLASOV, EN SVET

43 Languages

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MANY VOICES,


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