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Local Commercial Radio Licence Award: Liverpool

The FM local commercial radio licence for Liverpool was awarded on 9 November 2006 to Radio City (Sound of Merseyside) Limited (CityTalk).

Liverpool licence award decision

In considering the applications in relation to section 105(a), Ofcom’s Radio Licensing Committee (RLC) felt that the applicant’s track record of success in the operation of Radio City in this marketplace, coupled with opportunities for cross-promotion and the sharing of resources, gave confidence in its ability to maintain a service that will require comparatively high levels of resources to operate.

With regard to sections 105(b) and (c), the RLC considered the applicant’s proposals in the light of clarification contained in its response to Ofcom questioning that it would commit, inter alia, to “a minimum of 30 hours per week of content rich non-mainstream programming” and “a minimum of 14 hours per week of ‘flagship programming’”. In the RLC’s view, the provision of an all-speech service, with a commitment to studio discussions, documentaries, and other non-phone-in based programmes, will both cater to the particular local tastes and interests identified in CityTalk’s application, and broaden choice.

In relation to section 105(d), the successful applicant conducted a good range of research whose methodology was considered to be robust and the findings from which were deemed to be reliable. This research also identified the challenges likely to face this type of service, allowing the applicant to address these in its application. It identified a clear market gap, particularly amongst older listeners, and found a high level of support for its programme proposals.

The RLC considered that, in relation to section 314 of the Communications Act 2003, CityTalk’s programming proposals contained a suitable proportion of local material and locally-made programmes for this licence area. The station will be locally produced and presented 24 hours a day (other than a limited amount of national and international news coverage which will be provided from elsewhere); while its Format includes commitments to deliver a wide range of local material.

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 Liverpool 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:

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 Liverpool licence was advertised on 6 April 2006. By the closing-date of 13 July 2006, ten applications were received, as follows:

allTALK FM Liverpool Limited
The Arrow (Liverpool) Limited
Radio City (Sound of Merseyside) Limited (CityTalk)
Liverpool Radio 1059 Limited (Jack FM)
Liverpool Local Radio Limited (Liver FM)
Merseylife Limited
Original Liverpool FM Limited
Planet Rock Limited
Rock Talk Liverpool
UK Media and Radio Liverpool Limited (Wicked FM)

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
Pam Giddy, Content Board member
Joyce Taylor, Content Board member

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 14 September 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.

Points for future applicants

1. Applicants are again reminded of the importance of the Format in the application process, and that it should represent a meaningful encapsulation of the character of the proposed service, presented in a readily enforceable way. It should not include notional statements, such as those of broad intent, or matters outside Ofcom's remit. Any specific commitments should carry just enough detail to make clear the proposition and subsequent obligation.

2. Applicants for licences in other areas should note that this licence award was made based on the particular characteristics of the Liverpool licence area, and the applications which were submitted. Each licence award will be made on an individual basis, with regard to the factors which, in the view of Ofcom, are particularly relevant to that case.


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