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The FM local commercial radio licence for Swindon was awarded on 5th September 2005 to Ridgeway Radio Limited (NOW FM).

Swindon licence award decision

When the Swindon licence was advertised in March, we stated that, given the relatively small population coverage afforded by the licence, Ofcom would be likely to place particular emphasis on the ability of each applicant to maintain its proposed service for the duration of the licence period (section 105(a) of the 1990 Broadcasting Act).

As a 'smaller' licence serving a locality which is not the sole focus (in editorial terms) of any existing service, we also said that Ofcom was likely to consider speech content to be more important than music proposals in assessing section 105(c) - the extent to which each applicant would broaden the range of local commercial radio services available in the area, and that 105(c) might be considered less significant overall than section 105(b) - the applicants' ability to cater for local tastes and interests.

Finally, in respect of section 105(d) - the extent to which there is evidence of local demand or support for a proposed service - we said that non research-based evidence of local support would be likely to be considered alongside evidence of demand.

We 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.

This licence attracted four applications all offering relatively similar programming proposals. However, Ofcom’s Radio Licensing Committee (RLC) considered NOW FM to be the strongest on a balance of the criteria.

In considering the applications in relation to section 105(a), the committee felt that the backing of The Local Radio Company (TLRC) gives NOW FM financial stability, coupled with extensive experience of operating smaller stations in similar markets. The group’s board offers strong radio and management experience, as well as an understanding of the local area. It was also noted that TLRC owns a number of neighbouring stations which are performing ahead of expectations. This would indicate that NOW FM appears to be well-placed to maintain its service, in competition with, in particular, the heritage station for Swindon and West Wiltshire, GWR-FM.

With regard to sections 105 (b) and (c), NOW FM commits to an emphasis on local news and information, including seven-days-a-week local news provision throughout daytime, an extended local bulletin each weekday, and a wide range of specific non-news speech items. The station will also benefit from being able to call upon the news resources of TLRC’s neighbouring stations. When coupled with a broad mix of music and a promise that no era will dominate, the RLC considered that this Format would both cater to local tastes and interests, and broaden choice.

In relation to section 105(d), NOW FM conducted two robust quantitative research surveys which it used to shape and confirm demand for its music and speech proposals. The group also demonstrated support from a range of businesses, other organisations and individuals, notably through a telephone survey of 150 local businesses.

The RLC considered that, in relation to section 314 of the Communications Act 2003, NOW FM’s programming proposals contained a suitable proportion of local material and locally-made programmes. The station will be locally produced and presented for a minimum 18 hours per day, and 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 Swindon licence, can be found at: http://www.ofcom.org.uk/radio/ifi/rbl/car/ifmapps/

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 Swindon licence was advertised on 3 March 2005. By the closing-date of 2 June 2005, four applications were received, as follows:

• Moonraker FM (Swindon) Limited
• Ridgeway Radio Limited (NOW FM)
• Radio Swindon Limited
• Swindon Radio Limited (Swindon FM)

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

• Ian Hargreaves, Ofcom Board member (Chair)
• Kip Meek, Senior Partner, Competition & Content (Co-chair)
• Matthew MacIver, Content Board member for Scotland
• Peter Bury, Director of Strategic Resources
• Peter Davies, Director of Radio and Multimedia
• Martin Campbell, Head of Radio Content & Standards
• 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 4 July 2005. 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 5 September 2005 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 Swindon 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. Where possible, the likely weight accorded to each of the statutory criteria will be signalled as part of each licence advertisement.

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