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The FM local commercial radio licence for the city of Oxford and parts of South Oxfordshire was awarded on 12 October 2006 to Absolute Radio International Limited (Jack FM).

Oxford and South Oxfordshire licence award decision

In considering the applications submitted for the Oxford and South Oxfordshire licence in relation to section 105 (a) of the Broadcasting Act 1990, Ofcom’s Radio Licensing Committee (RLC) felt that Jack FM’s application demonstrated convincingly the group's ability to maintain its proposed service. More specifically, the RLC noted that the group's intention to co-locate Jack FM with the co-owned Oxford’s FM 107.9 offered resource-sharing and cross-selling opportunities which would help to enhance the likely financial stability of the service. The RLC also recognised the realism of the group’s financial projections when compared with the performance of existing stations of a similar size and the forecasts of other applicants; this was considered of particular importance given the strength of competition that the new service is likely to face. The radio experience of the board, and the successful performance of the Juice FM service under its ownership, were also noted.

With regard to sections 105 (b) and (c), the RLC was impressed by the innovative nature of the Jack FM Format, for which there was evidence of demand demonstrated in the group's application. In particular, it was considered that Jack FM’s 'Pop Rock' and 'Classic Rock'-based (but nevertheless eclectic) music policy would be likely to give exposure to a variety of genres or styles that applicant monitoring demonstrated are generally under-represented in the music output of existing Oxford commerical stations. It was also noted that Jack FM’s commitment to restrict airplay to avoid current pop and dance music would ensure that the output remains distinctive from the two existing commercial services available in the area. In addition, it was felt that the nature of Jack’s speech proposal to have at least one daily programme of 40% speech centred around current affairs and topical local interest would be genuinely distinctive, and would cater for local tastes and interests, as demonstrated by the group's research.

In terms of section 105 (d), it was felt by the Committee that Jack FM demonstrated that there was demand for a service with a significant proportion of Pop Rock and Classic Rock tracks, in particular within the target audicence group, and for a service which features a mixture of genres and eras (rather than a radio station defined mainly by a particular era or genre). The Committee also noted the information drawn out from the qualitative research, which demonstrated support amongst the target audience for the station's music proposition. The advertiser survey helped to demonstrate the potential commercial viability of the proposed service.

Finally, the RLC considered that, in relation to Section 314 of the Communications Act 2003, Jack FM’s programme proposals contained a suitable proportion of locally-made programming and local material. The station will be locally produced and presented at least 18 hours a day, and will feature extensive local news 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 Oxford 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 Oxford and South Oxfordshire licence was advertised on 10 March 2006. By the closing-date of 9 June 2006, five applications were received, as follows:

Oxford Local Radio Limited (Castle FM)
First Oxfordshire Radio Company Limited (Fox Gold)
Spirit of Oxfordshire Radio Ltd (Inspire 106)
Absolute Radio International Limited (Jack FM)
South Central Media Limited (More FM)

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

Tim Suter, Partner, Content and Standards (Chair)
Peter Bury, Director of Strategic Resources
Martin Campbell, Head of Radio Content Team
Peter Davies, Director of Radio and Multimedia
Pam Giddy, Content Board member
Neil Stock, Head of Radio Planning & Licensing
Joyce Taylor, Content Board member for Scotland

The applications were circulated among all members of the RLC 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 12 October 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 for licences in other areas should note that this licence award was made based on the particular characteristics of the Oxford and South Oxfordshire 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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