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Radio Licensing:FAQs

What are the different types of radio broadcast licence and how are they awarded?

National analogue commercial radio licences

There are three national analogue commercial radio broadcasters in the UK.

The Broadcasting Act 1990 states that two of the three national licences must be awarded to formats prescribed by the Act. One licence must be for a 'non-pop' station (this licence was awarded to Classic FM), and one must be for a predominantly speech-based service (awarded to TalkSport). The third licence is open to 'all-comers' and was awarded to Virgin Radio (a rock and pop service).

National analogue commercial radio licences are awarded by a cash-bid process. Applicants are also required to meet specific criteria set down in the Broadcasting Act 1990 (as amended).

The licences were issued for a period of eight years. However, national radio licensees were entitled to automatic renewal of their licence for a further eight years, without having to take part in a cash bid process, for broadcasting on the national digital multiplex.

Under the provisions of section 253 of the Communications Act 2003, analogue licence holders can apply for an extension of their licence for a period of four years from the date of expiry.

Any new licences will be issued for 12 years. However, due to a lack of available spectrum, Ofcom has no current plans to advertise any new national analogue licences.

Local analogue commercial radio licences

There are currently around 282 local analogue commercial radio broadcasters in the UK. Ofcom is currently in the process of advertising new local analogue licences on a monthly basis.

Ofcom is required to award licences for local commercial radio services in an open competition to the applicant who best meets the statutory criteria set out in the Broadcasting Act 1990 (as amended). These are:

The ability of the applicant to maintain the service for the twelve year licence period.
The extent to which the proposed service would cater for the tastes and interests of people living in the area.
The extent to which the proposed service would broaden listener choice.
The extent to which there is demand or support for the service in the area.

In addition, Section 314 of the Communications Act 2003 requires Ofcom to carry out its functions in relation to local commercial radio services in the manner that it considers is best calculated to secure:

that programmes consisting of or including local material are included in such services but, in the case of each such service, only if and to the extent (if any) that Ofcom considers appropriate in that case; and
that, where such programmes are included in such a service, what appears to Ofcom to be a suitable proportion of them consists of locally-made programmes.

For further information please see: http://www.ofcom.org.uk/radio/ifi/rbl/car/?a=87101

Community Radio licences

The characteristics of community radio services are distinct from commercial radio in that the services will cover a small geographical area and be provided on a not-for-profit basis focusing on the delivery of specific social benefits to enrich a particular geographical community or a community of interest.

Ofcom completed the first round of community radio licensing in May 2006. 107 community radio licences were awarded from the 196 applications received. A second round of licensing is due to commence later this year. To date, 184 letters of intent have been received from groups expressing an interest in applying during the next round.

Specific characteristics are set out in the Community Radio Order which requires that a Community Radio service must:

Be provided primarily for the good of members of the public or of particular communities and in order to deliver social gain, rather than primarily for commercial reasons or for the financial or other material gain of the individuals providing the service.
Be intended primarily to serve one or more communities - whether or not it also serves other members of the public. (A community is defined as either people who live or work or undergo education or training in a particular area or locality, or people who have one or more interests or characteristics in common).
Not be provided in order to make a financial profit, and uses any profit produced wholly and exclusively to secure or improve the future provision of the service or for the delivery of social gain to members of the public or the target community.
Offer members of the target community opportunities to participate in the operation and management of the service.
Be accountable to the target community.

In addition, the Community Radio Order, sets out specific selection criteria to be used by Ofcom when considering Community Radio licence awards. Ofcom must consider:

The ability of an applicant to maintain the proposed service throughout the licence period.
The extent to which the proposed service caters for the tastes and interests of members of the target community.
The extent to which the proposed service would broaden the range of programmes provided by (non-BBC) local radio services.
Evidence of local demand and support for the introduction of the proposed service.
The extent to which the proposed service would result in the delivery of social gain to the public or relevant community.
The extent to which those operating the proposed service would be accountable to the target community in respect of the provision of the proposed service.
The level of provision of access to the facilities of the proposed service by members of the target community.

Some restrictions on the introduction of community radio have been put in place by Parliament to protect existing small-scale commercial radio services. These are as follows:

Where there is a commercial radio service with a coverage area of 50,000 adults or fewer, no community radio service can be introduced if the two services overlap by 50% or more in terms of audience.

For commercial radio coverage areas with between 50,001 and 150,000 adults, community radio services can be introduced. However, if the services overlap by 50% or more, the Community Radio licence cannot carry on air paid-for spot advertising or sponsored programming.

For areas not covered by these small-scale commercial broadcasters, or for proposed community radio services which overlap by less than 50% with any such service, then there are no restrictions, other than the general duty placed upon Ofcom by Parliament to consider the economic impacts of community radio on existing services.

In all cases, community radio must receive funding from multiple sources and no one source can contribute more than 50% of operational funding.

The Government has set up an annual £500,000 fund to help community radio broadcasters to launch a new radio station in their local community. Ofcom administers this fund and a Community Radio Fund Panel has been established to examine applications and make awards from the Fund. £444,026 from the 2005/06 Fund has been awarded to community radio licensees and the Panel is currently assessing applications for the 2006/07 Fund.

For further information please see the community radio pages on our website:

http://www.ofcom.org.uk/radio/ifi/rbl/commun_radio/?a=87101

Radio restricted service licences

There are two types of radio restricted service licence (RSL):

Short-term RSL – these are temporary licences usually issued for a maximum of 28 days for wide range of reasons operating on low-power for limited geographical area.
The licences are issued to cover a special event such as a sports event; religious event; a festival; for educational purposes, or trial broadcasts.
The licences generally are awarded on first-come-first-served basis at the discretion of Ofcom.
A person may hold two short-term RSLs in the same area in any twelve month period provided there is a four month gap between the broadcast of each service.
Long-termRSL – these licences are issued for maximum 5 years (automatically renewable) to provide a radio service within the boundaries of a single site, occupied by a non-commercial establishment, such as a university, hospital, or military base.

For further information, please see: http://www.ofcom.org.uk/radio/ifi/rbl/rsls/?a=87101

Radio licensable content service licences

Radio licensable content service licences are issued at the discretion of Ofcom (generally on request), for sound programme services being provided on a satellite or cable platform.
RLCS licences are issued for an indefinite period unless the licence is surrendered or revoked.
Those awarded RLCS licences will negotiate carriage of their service with a platform operator, i.e. a cable or satellite operator.

DAB national commercial radio multiplex licences

There is currently one DAB national commercial radio multiplex licence in issue. This is held by Digital One. Seven programme services and an entertainment data service are currently broadcast on the multiplex.

Ofcom announced in 2005, as part of the ‘Radio – Licensing Policy for VHF Band III, Sub-band 3’ consultation, its decision to allocate a block of spectrum to be used for a further DAB national commercial radio multiplex. This multiplex will provide additional choice for many listeners, Ofcom expects to advertise this licence before the end of 2006.

Ofcom is required to award national radio multiplex Broadcasting Act licences in an open competition to the applicant who best meets the statutory criteria set out in the Broadcasting Act 1996. When making the award, Ofcom will take into account:

the extent to which the award of the licence to the applicant would be calculated to promote the development of digital sound broadcasting in the UK (otherwise than by satellite);
how much of the potential coverage area applicants plan to serve, and by what timetable this will be achieved;
whether applicants appear able to establish the service and maintain it during the licence period;
to what extent the new radio services proposed by applicants appeal to a variety of tastes and interests;
how applicants will encourage listeners to invest in new radio sets;
whether applicants have behaved in a way likely to ensure fair and effective competition in contracting with those radio stations or data services who wish to appear on the multiplex.

DAB local radio multiplex licences

There are currently 46 local/regional radio multiplexes broadcasting in total more than 200 programme services in the UK.

Ofcom also announced in 2005 allocation of a further three blocks of VHF Band III spectrum to fill the gaps in local multiplex coverage. This will provide the opportunity for every part of the UK to receive local DAB Digital Radio services (including both commercial and BBC local and nations radio services). Ofcom expects to start licensing these local multiplexes late 2006.

When making a DAB local radio multiplex licence award, Ofcom will take into account:

how much of the potential coverage area applicants plan to serve, and by what timetable this will be achieved;
whether applicants appear able to establish the service and maintain it during the licence period;
to what extent the radio services proposed by applicants appeal to a variety of local tastes and interests. The legislation also requires the broadening of local digital choice to be taken into account;
evidence of local demand or support for applicants' proposals;
whether applicants have behaved in a way likely to ensure fair and effective competition in contracting with those radio stations or data services who wish to appear on the multiplex

DAB local radio multiplex licences are issued for 12 years.

Digital sound programme licences

Digital sound programme (DSP) licences are issued at the discretion of Ofcom (generally on request), for radio programme services being provided on a radio or other multiplex. Grounds for refusing a licence are limited by statute.
DSP licences are issued for an indefinite period unless the licence is surrendered or revoked.
Those awarded DSP licences will negotiate carriage of their service with a platform operator, i.e. radio multiplex operator, Freeview.
If a local analogue commercial radio station successfully secures a place on a local radio multiplex, it can apply to have its analogue licence renewed for a further twelve years.

Digital additional services licences

Digital additional services (DAS) licences are issued (generally on request), for data services being provided on a radio multiplex. Grounds for refusing a licence are limited by statute.
DAS licences are issued for an indefinite period unless the licence is surrendered or revoked.
Those awarded DAS licences will negotiate carriage of their service with a platform operator, i.e. radio multiplex operator.