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Six community radio licence awards: March 2008

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

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, the east Midlands and Lincolnshire (in no particular order):

Radio Lindum (Lincoln)
Boundary Sound ( Newark-on-Trent)
Gravity FM (Grantham)
Peace Radio ( Manchester)
North Manchester FM
Bolton FM

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

The RLC was satisfied that all of these services 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. The 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).

Radio Lindum (Lincoln)

Radio Lindum will serve the people of Lincoln with a particular focus on the older population. The group and its directors have a direct link with numerous local short term broadcasts dating back to the 1980s, suggesting a sustainable service for the community (section 105(1a)). The group’s proposed programming appears suited to its target community (1b) and would broaden choice locally (1c). Social gain proposals include a clear commitment to promoting discussion and the expression of opinion, and facilitating the active involvement of community volunteers in the service (1e and 1g).

Boundary Sound (Newark-on-Trent)

Boundary Sound will serve the people of Newark-on-Trent. The applicant has the experience of seven temporary broadcasts (RSLs) within its target community and its directors and founder members have a range of useful experience which should help promote sustainability (section 105(1a)). The experience of its RSL broadcasts helps to demonstrate that the service will appeal to the tastes and interests of its target community (1b) and it would broaden choice by providing a localised service in an area with a limited range of radio services (1c). The group was able to demonstrate the support of a wide range of community organisations and the general public (1d). The station has a proven track record of promoting debate and discussion (1e) and of promoting access to the service (1g).

Gravity FM (Grantham)

Gravity FM will serve the people of Grantham. The group has a great deal of experience in delivering community broadcasting and has a sizeable number of active volunteers (section 105(1a)). The station’s proposed programming draws on the experience of its short term broadcasts to serve the tastes and interests of the target community and the clear local focus should help to ensure that it broadens choice locally (1c). The station will work with underserved members of the target community and has a range of programming for facilitating discussion and debate (1e). The station will actively recruit for a listeners’ panel to help ensure its accountability to the target community (1f) and has an open door policy designed to attract participants in the service (1g).

Peace FM (Manchester)

Peace FM will target listeners primarily from the African Caribbean community in and around Moss Side in Manchester, but will also appeal to all listeners who enjoy contemporary black music. The group has run a number of temporary broadcasts (RSLs) within its target community and has secured some funding for its full time service (section 105(1a)). The group has the support of, and input from, local stakeholders across a range of sectors (1d) and will serve a clearly defined, underserved and socially disadvantaged community (1e). Accountability proposals are strong, with an elected steering group (1f) and the station is committed to providing access to volunteers and community groups with community speech and representation central to its programming aims (1g).

North Manchester FM

North Manchester FM will serve the people of North Manchester. The large number of directors include those very experienced in delivering community radio and other relevant local services, and the station has secured some funding and station premises which should help ensure its sustainability (section 105(1a)). The station has the support of a range of community groups (1d) and will serve an area not currently served by community radio (1e). The group’s location within a further education institute will help to ensure that its training programme is accessible and effectively delivered to the target community (1e and g). Accountability proposals are strong, with station members eligible for election to the board (1f).

Bolton FM

Bolton FM will serve the people of Bolton. Its directors have a range of experience including in radio, training and social enterprises and it has secured some funding to promote its sustainability with a detailed and plausible business plan (section 105(1a)). The group has secured the support of a wide range of local organisations (1d). The station has good proposals with regards to training and cross community programming to promote cohesion (1e). The group appears committed to accountability via mechanisms such as the steering group and the election of Board members by members of Bolton FM (1f). The station will have a regular programme of publicity and outreach work to actively encourage participation in the service (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 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.

Ofcom received 24 applications, the non-confidential sections of which were made available for public scrutiny on our website. 20 applications were considered by RLC at its December, January and February meetings, three applications were considered at its March meeting leaving two applications from this region still to be considered for licence award.

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 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. 1 application was considered by RLC at its February meeting and five applications were considered by RLC at its March meeting, leaving a further 26 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

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 18 March 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.

March 2008