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

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 Scotland and north-east England (in no particular order):

1. 3TFM (Stevenston, Saltcoats and Ardrossan, North Ayrshire)
2. Spice FM (Newcastle-upon-Tyne)
3. Utopia FM (Sunderland)
4. Community Voice FM (Middlesbrough)

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

The RLC was satisfied that each group awarded a licence should be allowed to seek up to 50% of its annual income (as that term is defined in the legislation) 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).

3TFM (Stevenston, Saltcoats and Ardrossan, North Ayrshire)
3TFM will serve the local community of Stevenston, Saltcoats and Ardrossan with a community radio service which places particular emphasis on improving the health and general well-being of local residents. The group includes members with experience of hospital, community and commercial radio, and 3TFM has run two temporary radio restricted services (RSLs) in the area (section 105(1a)). Over the past three years it has established a coalition of appropriate local partners (local government and health and education professionals) and established strong links with local community groups and the voluntary sector (1e). The group has experience of training volunteers, including those with ill-health or disabilities (and has won a Scottish Adult Learners Award). It has plans for continuing this work with some accredited training also planned (1e and 1g).

Spice FM (Newcastle-upon-Tyne)
This station will serve the Black and minority ethnic communities of Newcastle upon Tyne. The applicant is a well-established group that has previously run five RSLs and has relevant internal expertise including radio presenting, finance, technical, and commercial and community fundraising (section 105(1a)). It has demonstrated a detailed understanding of its community which it has used to shape its proposed output (1b) and has built links with, and has the support of, a number of community groups (1d). It has proposed a range of procedures to ensure accountability to the community it wishes to serve (1f). Its focus on Asian music and a sizeable quantity of non-English speech is expected to broaden the choice available locally and serve an underserved community (1c and 1e).

Utopia FM (Sunderland)
Utopia FM will provide a community radio station by and for students at the University of Sunderland and young people in the wider City of Sunderland. Sunderland University, the applicant, has a history of involvement in radio broadcasting, and has run nine temporary RSLs (1a). The board of the station will include representatives from the local community and local business, as well as university and academic staff (1a). The applicant also demonstrates that it has been actively involved with the wider local community through partnerships with local educational institutions and training programmes with local youth groups, and it intends that these partnerships will continue (1e and 1g). Support for the application came from a variety of interest groups across the community and university (1d). The output will focus on ‘new music’ with support for local and regional artists and also include material on local culture, education, training and social inclusion, which will broaden choice locally (1c).

Community Voice FM (Middlesbrough)
This station will serve the people of Middlesbrough , with a particular focus on the poor and disadvantaged. It has built up sizeable assets and its directors have experience in community radio, fundraising, training, marketing and other areas (1a). The station has run an RSL and conducted audience and community research which go some way to ensuring it meets audience demand and broadens choice locally (1b and 1c). The station has the support of a wide range of local stakeholders and has already attracted a sizeable and diverse group of volunteers (1d). It has an appropriate training framework in place in partnership with local 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 25 October 2006 Ofcom invited applications for licences to provide community radio services in locations in Scotland and Northern Ireland. 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 24 applications, the non-confidential sections of which were made available for public scrutiny on our website. The first six licence awards resulting from these applications were made by the RLC on 8 May, a further five awards followed on 12 June and a further seven licences were awarded as a result of the 5 July RLC meeting. The remaining application, from 3TFM in North Ayrshire, was considered and awarded at the RLC’s September meeting (there was no RLC meeting in August).

On 3 January 2007 Ofcom invited applications for licences to provide community radio services in locations in north and north east England (including North Yorkshire). 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 seven applications, the non-confidential sections of which were made available for public scrutiny on our website. The first three licence awards resulting from the applications were made by RLC at its September meeting. It is anticipated that the remaining four applications will be considered at the RLC’s October meeting.

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
Pam Giddy, Content Board Member
Peter Davies, Director, Radio & Convergent Media
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 6 September 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.

September 2007

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