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Ofcom's Radio Licensing Committee ('RLC') has awarded four community radio licences in April.

All community radio services must satisfy certain 'characteristics of service' which are specified in Article 3 of the Community Radio Order 2004. The RLC was satisfied that each of the applicants awarded a licence met these 'characteristics of service'. In addition, each application was considered having regard to the criteria set out in section 105 of the Broadcasting Act 1990 ('BA 1990') (as modified by the Community Radio Order 2004). A summary of these criteria is set out below. The key considerations in relation to these criteria, which formed the basis of the RLC's decisions to award licences to particular applicants, are also set out below. Where applicable, the relevant subsection of section 105 (1) of the BA 1990 is noted in brackets. (Please see specific community radio licence award criteria, set out below, for full details of each subsection.)

Applicants awarded a licence

Ofcom's Radio Licensing Committee made licence awards to the following applicants in locations in the east Midlands and Lincolnshire (in no particular order):

1. Amber Sound FM (Ripley, Amber Valley, Derbyshire)
2. Erewash Sound (lkeston, Derbyshire)
3. Tulip Radio (Spalding, South Holland, Lincolnshire)
4. Takeover Radio (Sutton-in-Ashfield, Nottinghamshire)

Each of these services will be licensed for a period of five years from the date of their launch.

The RLC was satisfied that Amber Sound FM, Erewash Sound and Tulip Radio should be allowed to seek up to 50% of their respective annual income from the sale of advertising or programme/station sponsorship if they so wish, in accordance with section 105(6) BA 1990. Takeover Radio will have a condition in its licence prohibiting income from the sale of advertising or programme or station sponsorship. This is because the coverage of the service falls within the coverage area of a local commercial radio service which has more than 50,000, but fewer than 150,000, adults living in its measured coverage area ( Mansfield 103.2 ). Under the legislation, community radio services in such areas are prevented from seeking advertising and programme or station sponsorship revenue (section 105(4)(b)) if the coverage of the two stations overlaps by 50% or more in terms of adult (15+) population. RLC was satisfied that none of these new services would prejudice unduly the economic viability of any other local service (section 105(3) BA 1990).

Amber Sound FM (Ripley, Amber Valley, Derbyshire)

Amber Sound FM will serve the people of Ripley and surrounding areas of the Amber Valley in Derbyshire. The group’s previous local Restricted Service Licence (RSL) broadcasts have enabled it to obtain studio facilities and local support; it has also secured some funding ((1a) and (1d)). The programming proposals have been refined to meet the tastes and interests of the target community through feedback from the RSLs and are realistic and sustainable (1b). By offering a distinct local focus programming would also broaden choice locally (1c). Social gain is focussed on training, and the promotion of local community groups and businesses, coupled with clear access proposals ((1e) and (1g)).

Erewash Sound (lkeston, Derbyshire)

Erewash Sound is an established RSL and internet radio group which will serve the people of Ilkeston and surrounding areas of Erewash in Derbyshire. It has a board of eight, with radio experience as well as good local business and community links (1a). The proposed programming is based on RSL and internet experience which will help ensure it meets the tastes and interests of the target community (1b). Social gain is focussed on the promotion of local community groups and businesses, as well as training and work placements for younger people helped by its good relationship with local education providers (1e). Accountability will be promoted through its listener panel and a diverse board from various backgrounds with good community links (1f).

Tulip Radio (Spalding, South Holland, Lincolnshire )

This station will serve the people of Spalding and surrounding areas of South Holland in Lincolnshire. With short-term RSL broadcasting experience in the area and an existing asset base which should promote sustainability (1a), this group will provide a range of locally-focused speech and music-based programming which will also include output in various minority languages. Programming proposals, developed in light of feedback obtained from research and as a result of earlier temporary broadcasting experience, are designed to cater to the tastes and interests of the target community and to broaden choice locally ((1b) and (1c)). The station has also secured the support of a sizeable number of local stakeholders (1d). Its social gain proposals include the provision of services relevant to underserved groups within the local population and measures to strengthen links within the community through working with other community groups to support and improve social cohesion and the integration of different nationalities (1e). The group’s open access policy, road show and formal training programme will all help promote access to the service (1g).

Takeover Radio (Sutton-in-Ashfield, Nottinghamshire)

This group will serve the young people of Sutton-in-Ashfield in Nottinghamshire. It is separate from but will draw on the experience of Takeover Radio in Leicester and has directors with a range of appropriate radio and educational experience (1a). The group has undertaken research to demonstrate demand for the service (1d) and identify what programming will appeal to its target community (1b). By focussing on young people it will broaden choice (1c) and serve an underserved community (1e). Accessibility to the service is at the core of the proposed operation, with well developed links with key education providers ((1e) and (1g)).

Statutory requirements relating to community radio licensing

The following pages set out the statutory requirements relating to community radio licensing, and details of the licensing process. Further information about these, and detailed information relating to community radio, can be found at:

http://www.ofcom.org.uk/radio/ifi/rbl/commun_radio/

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) BA 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.

The characteristics of a community radio service

In respect of the licensing of community radio services in particular, all community radio licensees must satisfy 'characteristics of service' requirements which are specified in Article 3 of the Community Radio Order. The characteristics of community radio services are:

• That they are local services provided primarily for the good of members of the public, or of particular communities, and in order to deliver social gain, rather than primarily for commercial reasons or for the financial or other material gain of the individuals involved in providing the service;
• That the service is intended primarily to serve one or more communities (whether or not it also serves other members of the public);
• That the person providing the service does not do so in order to make a financial profit by so doing, and uses any profit that is produced in the provision of the service wholly and exclusively for securing or improving the future provision of the service, or for the delivery of social gain to members of the public or the community that the service is intended to serve;
• That members of the community it is intended to serve are given opportunities to participate in the operation and management of the service;
• That, in respect of the provision of that service, the person providing the service makes himself accountable to the community that the service is intended to serve.

Article 2 of the Community Radio Order includes four mandatory “social gain” objectives. ”Social gain” means the achievement, in respect of individuals or groups of individuals in the community that the service is intended to serve, or in respect of other members of the public, of the following objectives:

• the provision of sound broadcasting services to individuals who are otherwise underserved by such services,
• the facilitation of discussion and the expression of opinion,
• the provision (whether by means of programmes included in the service or otherwise) of education or training to individuals not employed by the person providing the service, and
• the better understanding of the particular community and the strengthening of links within it.

Article 2 also includes a number of other objectives of a social nature which may be considered to represent "social gain".

Specific community radio licence award criteria

There are seven specific selection criteria set out in section 105(1) BA 1990 that Ofcom must have regard to when considering whether to make a community radio licence award. In summary these are:

• The ability of each applicant to maintain its proposed service over the licence period (section 105(1)(a));
• The applicant’s ability to cater for the tastes and interests of the target community (section 105(1)(b));
• The extent to which each applicant would broaden the range of local radio services available in the area, and have a content distinct from those services (section 105(1)(c));
• The extent to which there is evidence of local demand or support for a proposed service (section 105(1)(d));
• The extent to which the service would deliver social gain benefits to the public or relevant community (section 105(1)(e));
• Provisions for making the operator of service accountable to the relevant community (section 105(1)(f));
• Provisions for allowing access by members of the public or the relevant community to the station facilities, and the provision of training in the use of those facilities (section 105(1)(g)).

Considering whether, or to whom (and on what conditions), to grant a community radio licence, Ofcom must also have regard to the need to ensure that any service provided under that licence does not prejudice unduly the economic viability of any other local service. Sections 105(4) to (6) BA 1990 require Ofcom:

• not to grant a community radio licence which would overlap with a commercial radio service serving no more than 50,000 persons of 15 years or older;
• to prohibit paid advertising and sponsorship of programmes in respect of any community radio service where that service overlaps with any other local radio service serving between 50,000 and 150,000 persons of 15 years or older; and
• in all other cases, to prohibit any community radio service from receiving an appropriate proportion (at least 50%) of relevant income from paid advertising and sponsorship of programmes.

For the avoidance of doubt, programme sponsorship includes station or channel sponsorship.

Ofcom is also prohibited, by subsection 2 of section 105, from granting a licence to any applicant who proposes to receive from any one person (or company) more than 50% of its annual funding.

Process for assessment of applications

On 10 October 2007 Ofcom invited applications for licences to provide community radio services in locations in the west Midlands, east Midlands and Lincolnshire. These licences were offered for the provision of services on either the FM (VHF) or AM (medium wave) wavebands, with the exception of the City of Nottingham, the Gedling District in Nottinghamshire, Telford & Wrekin Unitary Authority and the City of Wolverhampton Metropolitan District, for which licences were only available on AM.

Ofcom received 31 applications, the non-confidential sections of which were made available for public scrutiny on our website. Six applications were considered by RLC at its February and March meetings and five applications were considered by RLC at its April meeting, leaving a further 20 applications from this region still to be considered for licence award.

The invitations did not specify the locations of services, but left it for applicants to decide where they wanted to be located.

The membership of the RLC for the licence awards detailed above was as follows:

Philip Graf, Ofcom Deputy Chairman (Chair)
Joyce Taylor, Content Board Member for Scotland
Martin Campbell, Chief Adviser, Radio
Neil Stock, Head of Broadcast Licensing
Pam Giddy, Content Board Member
Peter Bury, Director of Strategic Resources
Peter Davies, Director, Broadcast Licensing & Radio Policy
Stewart Purvis, Partner - Content and Standards

A summary and assessment of each application was presented to the RLC at its meeting on Tuesday 22 April 2008. These papers summarised the proposals put forward by the applicants as they relate to the statutory criteria, and highlighted any issues of relevance under those criteria.

April 2008

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