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

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 north Wales and northwest England (in no particular order):

1. Tudno FM (Llandudno, north Wales)
2. Radio Elwy/Point FM (Rhyl, north Wales)
3. Preston FM (Lancashire)

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

The RLC was satisfied that Preston FM should be allowed to seek up to 50% of its annual income from the sale of advertising or programme/station sponsorship if it so wishes, in accordance with section 105(6) BA 1990, and that none of the new services would prejudice unduly the economic viability of any other local service (section 105(3) BA 1990).

Both Tudno FM and Radio Elwy/Point FM will have conditions in their licence prohibiting income from the sale of advertising or programme or station sponsorship. This is because the coverage of each 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 (Coast 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.

Tudno FM (Llandudno, north Wales)
This group will run a bi-lingual station in English and Welsh in Llandudno and surrounding areas. This includes areas of significant social deprivation and two of the poorest wards in Wales. The directors have a range of relevant experience and the group is in a strong financial situation with existing studio facilities and sizeable secured funding (section 105(1a)). The group has a Welsh language policy and has conducted extensive research to help shape programming proposals which should therefore cater for the interests of the target community (1b). The group has formed strong links with local groups and organisations, including educational establishments, which will assist in the delivery of social gain such as training for the target community (1e). In addition its studio is within a community centre used by a number of community organisations which will help promote access to the service (1g).

Radio Elwy/Point FM (Rhyl, north Wales)
Radio Elwy/Point FM will serve the people of Rhyl and surrounding areas in north Wales. The directors have previous broadcast experience - including with RSLs in Rhyl - and the group has strong links with local stakeholders which should promote sustainability (section 105(1a)). The group’s proposed output is based on survey data and community feedback during RSLs which should therefore insure it caters for the tastes and interests of the target community (1b).The group has received support from a range of local stakeholders including practical support in the shape of premises for the studio and transmitter site (1d). The station will be directly accountable to its members (1f) and is committed to opening its facilities and operations to persons who wish to use them (1g).

Preston FM (Lancashire)
Preston FM will serve the people of Preston. The group has considerable relevant experience and success in obtaining funding, and its long-established parent organisation has liquid assets to call upon if required (section 105(1a)). It has used audience research and its RSL experience to inform its programming proposals (1b). The group provided considerable evidence of demand and support for its proposed service from a range of relevant local groups (1d). The station also provided detailed proposals for the delivery of social gain including its commitment to providing space for those individuals and groups who do not normally have access to the media (1e & 1g) and its steering group will allow members of the target community to influence station operation and output (1f).

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. Three applications were considered by RLC at its December meeting and eight at its January meeting, leaving a further 13 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 22 January 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.

January 2008

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