The Otago University Students' Association (OUSA) has decided Radio One will not be sold. But it says other assets may have to be pruned to keep the association solvent.
OUSA commissioned a review of all its services in May as it contemplates the possibility of reduced revenue should Parliament adopt the Voluntary Student Membership Bill.
Accountancy consultant Deloitte said Radio One had little commercial value, and the association recommended the station be sold.
Students overwhelmingly opposed the recommendation and the radio station went off air for a week in protest.
OUSA president Logan Edgar said yesterday that Radio One would not be sold because the community had shown it was "a valued service".
"There's a lot of good things that Radio One does.
"Students who have left and gone to other places around the world continue to listen and keep in touch with what is happening at the university.
"It works like a bridge," Mr Edgar said.
Radio One station manager Sean Norling was pleased with the announcement.
"I think OUSA has made the right decision.
"I was of the mind that, voluntary student membership or not, Radio One is a crucial service to the city and to the university.
"It's the connection between the town and the gown. There is no other OUSA service that connects Dunedin to the university."
Although Radio One was now off the OUSA endangered list, Mr Norling said the station would have to improve its financial performance and engage more effectively with students.
Mr Edgar said he had faith Mr Norling could make that happen.
"With voluntary student membership looking more and more likely, we are definitely going to have to make Radio One cost-neutral.
"We will also have to look at other cost-cutting measures in terms of our assets.
"But that will be a wait-and-see situation."
OUSA owns the University Book Shop, Critic magazine, Planet Media, Radio One, The Clubs and Societies Centre, the Aquatic Centre, the squash courts, Mojo's Activities Hall, and 40% of the Unipol gym.
