Home > Radio > Information about stations and licensing > Radio Broadcast Licensing > Analogue Commercial Radio > Awards > Southend

The FM local commercial radio licence for Southend was awarded on 13 April 2006 to Southend Radio Limited.

Southend licence award decision

When the Southend licence was advertised in October 2005, Ofcom stated that, given the characteristics of the area, it felt unable to indicate whether any one of the four statutory licensing criteria (see under ‘Specific local licence award criteria’ below) would be likely to regarded as of particular significance. However, it was stated that, in respect of criterion (d) – the extent to which there is evidence of local demand or support for a proposed service, Ofcom would be likely to attach greater weight to robust and meaningful evidence of demand as demonstrated by findings from research undertaken in the licence area and, if appropriate, detailed analysis of the existing market, than to evidence of local support as demonstrated by letters from potential listeners and/or advertisers.

It was also noted that this guidance is subject to discretion, and that Ofcom will always consider each of the four statutory criteria when making a licence award.

In considering the applications in relation to section 105(a), the Radio Licensing Committee (RLC) felt that the combined backing of Stockvale Limited (80% shareholder) and Provincial Radio Limited (20% shareholder) gives Southend Radio a strong degree of financial stability, and appropriate experience of operating small stations in similar markets nearby. The involvement of Provincial Radio Limited (which is a wholly-owned subsidiary of Tindle Radio) would give Southend Radio the opportunity to offer a combined advertising sell, which would be likely to place the new service in a much stronger financial position in relation to the heritage station Essex FM than might otherwise be the case. The group’s board offers strong radio and management experience, as well as an understanding of the local area; the RLC considered that these characteristics enhanced the ability of Southend Radio to maintain its proposed service.

With regard to sections 105 (b) and (c), Southend Radio commits to an emphasis on local news and information as a minimum of 30% of the output, including local news provision throughout daytime, two extended news bulletins, and a variety of non-news speech items. The station will also benefit from being able to call upon the news resources of nearby stations owned by shareholder Tindle Radio.

Southend Radio’s music proposal, which puts a 15% cap on current hits, combined with a broad music policy incorporating music from the 1960’s onwards, was considered to offer a distinct alternative to the FM service available in the area (Essex FM). In addition, the inclusion of some appropriate contemporary music is likely to distinguish Southend Radio from the AM service in the area, Classic Gold Breeze. It was also considered that the group's chosen target audience of over-35s was an appropriate recognition of the age profile of the local population. Overall, the RLC considered that Southend Radio's proposed Format was well-drafted, and would both cater to local tastes and interests and broaden choice.

In relation to section 105(d), Southend Radio conducted robust quantitative research and monitoring which it used to shape and confirm demand for its music and speech proposals. In particular, Southend Radio’s research demonstrated that it’s over-35 target audience has a preference for services with a more balanced mix of music and speech. The group also demonstrated local support for its application from a range of potential advertisers in Southend, largely based on the existing relationships of Stockvale Limited with local businesses in the area.

The RLC considered that, in relation to section 314 of the Communications Act 2003, Southend Radio’s programming proposals contained a suitable proportion of local material and locally-made programmes for this licence area. The station will be located within Southend providing locally produced and presented output at least twenty hours a day, and its Format includes commitments to deliver a 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 Southend licence, can be found at:

http://www.ofcom.org.uk/radio/ifi/rbl/car/lapr/

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 Southend licence was advertised on 6 October 2005. By the closing-date of 12 January 2006, four applications were received, as follows:

Radio UK Holdings Limited (Diamond FM)
Estuary FM Limited (Estuary FM)
Radio Futures Limited (Seacoast Sound)
Southend Radio Limited (Southend Radio)

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, Head of Radio Content Team
Peter Davies, Director of Radio and Multimedia
Matthew MacIver, Content Board member for Scotland
Neil Stock , Head of Radio Planning & Licensing

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 Radio Licensing Committee took all replies into account when reaching its decision.

The Radio Licensing Committee had an initial discussion of the applications at its meeting on 9 February 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 13 April 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 Southend 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.

Back to top