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Four community radio licence awards: February 2008

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

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 northwest England (in no particular order):

Rossendale Radio ( Rossendale Valley, Lancashire)
Canalside Radio (Bollington, Cheshire)
Moorlands Radio (Biddulph, Staffordshire)
KCC Live (Knowsley, Merseyside)

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

The RLC was satisfied that both Rossendale Radio and Moorlands 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. Canalside 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 ( Silk FM ). 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).

With regard to KCC Live, the RLC had some concerns that this service may prejudice unduly the economic viability of another local service (section 105(3) BA 1990). Therefore, and in accordance with sections 105(4) and 105(6) BA 1990, the RLC decided to grant a licence with a condition prohibiting the annual income which KCC Live may seek from the sale of advertising and programme/station sponsorship to 15% of its annual income. This is in line with the applicant’s financial projections.

Rossendale Radio (Rossendale Valley, Lancashire)

Rossendale Radio will serve the people of the Rossendale Valley in Lancashire. The directors have considerable relevant experience and the group has strong links with local stakeholders which should help promote sustainability (section 105(1a)) . There is a limited range of local radio services currently available to the target community and the proposed service will broaden choice (1c) and serve a currently underserved community (1e). The group has gained the support of a range of community stakeholders (1d). It has sound proposals with regard to accountability (1f) and is committed to providing access to the wider community (1g).

Canalside Radio (Bollington, Cheshire)

Canalside Radio will serve the people of Bollington and the surrounding area in Cheshire. The group has the experience of three temporary broadcasts (RSLs) within its target community and has received funding from a range of sources (section 105(1a)) . The station’s programming, including some specialist programmes, draws on the experience of its RSLs and should appeal to the tastes and interests of its target community (1b). The group was able to demonstrate the support of, and demand from, its target community (1d). Its social gain proposals are strong, with an established training programme that already has the involvement of a sizeable number of local schools. The station’s listener panel and community steering group demonstrates its commitment to accountability to the local community (1f) and its dedicated training facility located within a community drop-in centre illustrates the accessibility of the service (1g).

Moorlands Radio (Biddulph, Staffordshire)

Moorlands Radio will serve the people of the rural towns of Leek and Biddulph and surrounding areas in the Staffordshire Moorlands. The group’s directors have a range of relevant experience and Moorlands Radio has run three RSLs which have enabled it to embed itself within the target community ( section 105(1a)) . The group’s proposed programming would be locally focussed and draw on the experience of its RSLs to cater for the needs, tastes and interests of the target community (1b). It has secured the support of a large number of community stakeholders (1d). The group’s social gain proposals are strong, with a clear intention to promote discussion and debate and to provide training opportunities for community members through its existing structured training and work experience scheme (1e). The station’s advisory panel and membership scheme that is open to all members of the community should help ensure its accountability to the community (1f).

KCC Live (Knowsley, Merseyside)

KCC Live will serve young people in the economically deprived area of Knowsley, Merseyside. The station is based in a further education college and has many years experience with a long-term RSL which broadcast within the college. The group’s links with its parent college mean that it has access to studios, committed staff and secured funding ( section 105(1a)) . The station’s clearly defined target community and its experience with its community should ensure that it caters for its tastes and interests (1b). The group has the support of a range of relevant community stakeholders (1d). In addition it has strong social gain proposals, with a clear focus on serving its underserved target community, giving its young participants a voice and, through its links to the parent college, a well documented, tried and tested processes for bringing volunteers into the organisation (1e and g).

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 25 July 2007 Ofcom invited applications for licences to provide community radio services in locations in north Wales (defined as all parts of Wales north of a line drawn between where Ceredigion borders Gwynedd and where Powys, Shropshire and Herefordshire meet) and northwest England (including Cheshire, Merseyside, Greater Manchester and Lancashire). These licences were offered for the provision of services on either the FM (VHF) or AM (medium wave) wavebands, with the exception of the Vale Royal District in Cheshire, the Chorley District in Lancashire, Oldham Metropolitan District, Tameside District and Wirral Metropolitan District for which licences were only available on AM. The invitation did not specify the locations of services, but left it for applicants to decide where they wanted to be located.

Ofcom received 24 applications, the non-confidential sections of which were made available for public scrutiny on our website. 11 applications were considered by RLC at its December and January meetings and 9 at its February meeting, leaving a further 5 applications from this region still to be considered for licence award.

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 Radio
Pam Giddy , Content Board Member
Peter Bury , Director of Strategic Resources
Peter Davies, Director, Radio & Convergent Media
Stewart Purvis, Partner - Content and Standards

A summary and assessment of each application was presented to the RLC at its meeting on Tuesday 19 February 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.

February 2008