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At its meeting on Thursday 11th January, Ofcom's Radio Licensing Committee ('RLC') awarded two community radio licences. These awards are the first in Ofcom's second round of community radio licensing.

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 both 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.

Finally, the RLC was satisfied that each applicant awarded a licence should be allowed to seek up to 50% of its annual income from the sale of advertising or programme sponsorship if it so wishes, in accordance with section 105(6) BA 1990, and that neither of the new services would prejudice unduly the economic viability of any other local service (section 105(3) BA 1990).

Applicants awarded a licence

Ofcom's Radio Licensing Committee made licence awards to the following applicants:

1. Stroud FM (Stroud, Gloucestershire)
2. 10Radio (Wiveliscombe and surrounding area, Somerset)

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

Stroud FM, Stroud, Gloucestershire

This applicant brings a considerable amount of external broadcasting experience to its proposals for a service which would have a clearly defined local focus, supported by a motivated management team (1a). This group has put forward plans to gradually increase its speech-based content over time and deliver a local radio service with a clearly defined and appropriate community ethos (1b and 1e) which would broaden choice locally (1c). It has built relationships with a range of local organisations which support the application (1d).

10Radio, Wiveliscombe, Somerset

A coherent and realistic set of proposals from a group that has honed its plans through the operation of two temporary restricted service licences (RSLs). The board of ten includes people with experience of training, community development, broadcasting and local business (1a). A training partnership has been forged with the local school, in return for funding (1a and 1e). Live output is proposed on Fridays and weekends only at first, and will include coverage of the local arts scene including local music (1b and 1c).

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.

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 16 August 2006 Ofcom invited applications for licences to provide community radio services in locations in the southwest of England and south/mid Wales. These licences were offered for the provision of services on either the FM (VHF) or AM (medium wave) wavebands. The invitation did not specify the locations of services, but left it for applicants to decide where they wanted to be located.

Ofcom received 21 applications, the non-confidential sections of which were made available for public scrutiny on our website. The first two licence awards were made by the RLC on 11 January, and the remainder of the applications received from applicants wishing to serve localities in this region will be considered by the RLC in the coming months.

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

Ian Hargreaves, Board Member (Chair)
Tim Suter, Partner, Content & Standards
Pam Giddy, Content Board Member
Joyce Taylor, Content Board Member for Scotland
Peter Davies, Director, Radio & Multimedia
Peter Bury, Director of Strategic Resources
Martin Campbell, Chief Adviser, Radio
Neil Stock, Head of Radio

A summary and assessment of each application was presented to the RLC at its meeting on Thursday 11th January 2007. 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.

January 2007

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