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The FM local commercial radio licence for Aberdeen was awarded on 11 January 2007 to Original Aberdeen FM Limited.

Aberdeen licence award decision

In considering the applications submitted for the Aberdeen licence in relation to section 105 (a) of the Broadcasting Act 1990, Ofcom’s Radio Licensing Committee (RLC) considered that the business plan proposed by Original Aberdeen FM Limited (which is 95% owned by CanWest MediaWorks, a subsidiary of CanWest Global Communications Corp, and 5% owned by Seven Broadcast) demonstrated the ability of the applicant company to maintain its proposed service. While the Committee acknowledged that Original Aberdeen FM Limited’s financial forecasts were slightly ambitious when compared with the performance of existing services of a similar size, the RLC also noted the high level of initial funding for the station. In general, the RLC felt that Original Aberdeen’s application demonstrated an understanding of the Aberdeen market, and in particular identified a gap in the current local commercial radio provision for ABC1 listeners (which is also reflected by the RAJAR figures for the existing stations in the market) which its proposed service is intended to fill; it was also noted that the proposed target audience of the service is likely to increase its appeal to potential advertisers.

With regard to sections 105 (b) and (c), the RLC felt that Original Aberdeen’s eclectic and distinctive ‘Adult Alternative’ music policy would significantly broaden choice in the Aberdeen market, and would also cater for local tastes and interests as demonstrated by the group’s research. In particular, the inclusion in the main mix of a number of genres and styles that are currently under-represented in the Aberdeen market (such as rock, soul, R & B, blues and 'eclectic') would provide listeners in the area with access to a greater number of different styles of music than is currently available to them. It was noted that Original Aberdeen’s Format commitment to restrict airplay of top 20 chart singles (past or present) to no more than 35% of the total tracks played, and the commitment to low rotation levels, would ensure distinctiveness from the existing commercial services. This proposal was well-supported by the applicant's monitoring, which demonstrated the dominance of mainstream contemporary music, both past and present, in the marketplace.

In addition, the Committee felt that the range and nature of Original Aberdeen’s speech proposals, which include round-the-clock news bulletins and a minimum of 40% speech during weekday breakfast and drive-time, would further extend choice in the local marketplace and would be likely to appeal to the station’s target audience.

In relation to section 105 (d), the RLC observed that Original Aberdeen had conducted reasonable and robust research with comprehensive local market analysis, the findings from which underpinned its proposals. Original Aberdeen migrated its top-testing speech specifics to the Format document, and excluded those items which scored less well with the respondents to its research. The research demonstrated clear demand for a service which features a mixture of music genres and eras (rather than a radio station defined mainly by a particular era or genre) as well as a significant proportion of album tracks.

Finally, the RLC considered that, in relation to Section 314 of the Communications Act 2003, Original Aberdeen demonstrated evidence of demand for the amount of local material and proportion of locally-made programming proposed in its application. The station’s proposed Format includes a requirement to provide locally-made programming 24 hours per day (apart from the occasional networked or syndicated programme), and includes a commitment to airing local news bulletins 24 hours a day and other locally-relevant information.

The following pages set out the statutory requirements relating to radio licensing, and details of the licensing process. Further information about these, and detailed information relating to the applications for the Aberdeen licence, can be found at: http://www.ofcom.org.uk/radio/ifi/rbl/car/

Statutory requirements relating to radio licensing

In carrying out all of its functions, Ofcom is required to have regard to the general duties set out in section 3 of the Communications Act 2003. In addition, under section 85(2)(b) of the Broadcasting Act 1990, it is the duty of Ofcom to do all that it can to secure the provision within the UK of a range and diversity of local radio services.

'Localness'

In carrying out its functions in relation to local commercial radio services specifically, Ofcom is required (under section 314 of the Communications Act 2003) to act 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 the purposes of the licensing process, Ofcom does not consider it appropriate to prescribe an amount of local material or a proportion of locally-made programming that new services should contain, as such matters may well vary greatly between different types of service. Rather, it is for applicants to set out in their application the amount of local material and the proportion of locally-made programming they propose to provide, supported, as appropriate, by evidence of demand or support for such proposals. Ofcom will then consider on the basis of the application whether the amount of local material included is appropriate, and whether the proportion of locally-made programming is suitable, for that particular service proposal.

Specific local licence award criteria

In considering the applications it receives for local commercial radio licences, Ofcom is required to have regard to each of the statutory criteria set out in section 105 of the Broadcasting Act 1990. These are as follows:

1. the ability of each of the applicants for the licence to maintain, throughout the period for which the licence would be in force, the service which he proposes to provide;
2. the extent to which any such proposed service would cater for the tastes and interests of persons living in the area or locality for which the service would be provided, and, where it is proposed to cater for any particular tastes and interests of such persons, the extent to which the service would cater for those tastes and interests;
3. the extent to which any such proposed service would broaden the range of programmes available by way of local services to persons living in the area or locality for which it would be provided, and, in particular, the extent to which the service would cater for tastes and interests different from those already catered for by local services provided for that area or locality; and
4. the extent to which there is evidence that, amongst persons living in that area or locality, there is a demand for, or support for, the provision of the proposed service.

The legislation does not rate these requirements in order of priority, but it may be that Ofcom will regard one or more of the criteria as being particularly important in view of the characteristics of the licence to be awarded and the applications for it.

Process for assessment of applications

The Aberdeen licence was advertised on 4 July 2006. By the closing-date of 5 October 2006, four applications were received, as follows:

• Aurora FM Limited
• Original Aberdeen Limited
• Real Radio (Scotland) Limited
• Waves Radio Limited

The membership of Ofcom's Radio Licensing Committee (RLC) for this licence award was as follows:

Ian Hargreaves, Ofcom Board Member (Chair)
Tim Suter, Partner, Content and Standards (Deputy Chair)
Peter Bury, Director of Strategic Resources
Martin Campbell, Chief Advisor, Radio
Peter Davies, Director of Radio & Multimedia
Pam Giddy, Content Board member
Neil Stock, Head of Radio
Joyce Taylor, Content Board member for Scotland

The applications were circulated among all members of the RLC set out above as well as among relevant Ofcom colleagues. Copies of the non-confidential sections of the applications were made available for public scrutiny on the Ofcom website, and public comment on the local radio needs of listeners in the area, and the type of programme service required, was invited both at the time of the licence advertisement and on the day after the applications were received. The RLC took all replies into account when reaching its decision.

The RLC had an initial discussion of the applications at its meeting on 9 November 2006. This comprised an initial presentation by a member of Ofcom's Radio Planning & Licensing team, summarising the proposals put forward by each applicant as they relate to the statutory criteria, followed by an opportunity for the RLC members to highlight any questions of clarification and/or amplification they wished to be put to the applicants.

Shortly after this meeting, each applicant was invited to respond, within a two-week period, to written questions of clarification and/or amplification on aspects of their proposals. The non-confidential questions and responses were subsequently made available for public scrutiny on the Ofcom website.

In line with Ofcom's published procedures, each application was awarded a score (of between 0 and 10) for each of the four statutory criteria contained in section 105 of the Broadcasting Act 1990. These scores provided an indicative picture of the perceived strengths and weaknesses of each application, and were used for guidance only. A summary of the scores was presented to the RLC at its 9 November 2006 meeting, as part of a paper which summarised the issues of relevance for each application under each of the statutory criteria. The information included in this paper was drawn both from the applications and the subsequent responses to questions of clarification and/or amplification.

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