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Seven community radio licence awards: December 2005

At its meeting on the 12th of December, Ofcom's Radio Licensing Committee ('RLC') awarded a further seven community radio licences.

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 groups 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 of the BA 1990 is noted in brackets.

Finally, the RLC was satisfied that each group awarded a licence (with the exception of Colchester Garrison FM) 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 none of the new services would prejudice unduly the economic viability of any other local service (section 105(3) BA 1990).

Colchester Garrison FM will have a condition in its licence prohibiting income from the sale of advertising or programme sponsorship. This is because its coverage falls within the existing coverage area of a local radio service (SGR Colchester) with more than 50,000, but fewer than 150,000 adults living in its measured coverage area. Under the legislation community radio services in such areas are prevented from seeking advertising and programme sponsorship revenue (section 105(4)(b)) if the coverage of the two stations overlaps by 50% or more in terms of adult (15+) population.

The Licensees

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

1. West Hull Community Radio (West Hull)
2. Radio Reverb (East and Central Brighton)
3. Colchester Garrison FM (Colchester)
4. Spirit of Plymouth (Plymouth)
5. Resonance FM (Central London)
6. Desi Radio (Southall, West London)
7. Sound Radio (Hackney, East London)

West Hull Community Radio (West Hull): This group will serve the geographically based community in West Hull. This group has broadcasting experience at board level as well as directors that are involved in local organisations and agencies at a senior level (1a and 1d). Its proposals for training as part of its wider 'social gain' proposals are strong (1e) as are its plans to ensure access to, and training in, the use of broadcasting facilities (1g).

Radio Reverb (East and Central Brighton): Will serve the East and Central Brighton areas, focussing on the needs of various underserved areas and groups. This group has considerable funding in place and is closely supported by an established local training organisation (1a). Programming proposals will considerably broaden choice locally, (1c), and the group demonstrates high levels of local demand and support for its proposed service (1d). This group puts forward a wide range of appropriate 'social' gain' commitments (1e) as well as specific proposals to ensure its accountability to its target community (1f) and its plans to ensure access to, and training in, the use of broadcasting facilities (1g).

Colchester Garrison FM (Colchester): This group will serve soldiers, their families and other Ministry of Defence personnel. A financially secure group (1a) with programming proposals relevant to its specific target community (1b), it has demonstrated a high level of demand and support for its proposals (1d). This group includes strong proposals for the provision of training (1e) as well as appropriate mechanisms for ensuring its accountability (1f) and access to, and training in, the use of broadcasting facilities (1g).

Spirit of Plymouth (Plymouth): This group is seeking to serve the Christian community in the City of Plymouth. It has relevant community broadcasting experience at board level (1a), and has developed local links with its target community (1d). The group sets out a range of appropriate 'social gain' objectives (1e) and proposals to ensure its accountability to the target community (1f). A strong aspect of its proposals is its plans to ensure access to, and training in, the use of broadcasting facilities (1g).

Resonance FM (Central London): Serving "inner London's community of practising artists and engaged consumers", this group put forward a unique and wide ranging set of strong proposals. This group has a well developed structure, a strong board and some secured funding (1a). Its programming proposals greatly broaden choice (1c) and its proposals are well supported (1d). This group also puts forward proposals for the provision of a diverse range of training options, which are both well developed and appropriate (1e & 1g)

Desi Radio (Southall, West London): Serving the Panjabi community in West London, this group put forward very strong proposals across the range of statutory requirements set out in the relevant broadcasting legislation. The group is financially secure (1a) and has established and wide-ranging community links (1d). Its proposals for providing various forms of 'social gain' are diverse, and are particularly strong in relation to the delivery of training (1e). The strongest aspect of its proposals are its plans to ensure access to, and training in, the use of broadcasting facilities (1g).

Sound Radio (Hackney, East London): Serving a range of communities within the London Borough of Hackney, this group puts forward programming proposals which are both relevant to its target communities (1b) and will broaden the choice of programming available locally (1c). Its proposals concerning the delivery of a wide variety of 'social gain' benefits were particularly strong (1e), as were its proposals to ensure its accountability to its target communities (1f).

The first five services listed above will broadcast on FM. The last two services will broadcast on AM. All will be licensed for a five-year period

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:

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.

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 commercial 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 1 September 2004 Ofcom invited applications for licences to provide community radio services in most parts of the United Kingdom. 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 194 applications, the non-confidential sections of which were made available for public scrutiny on the Ofcom website.

Given the large number of applications received for community radio licences, Ofcom decided to assess them in order of priority by first considering applications in areas where the 14 pilot community radio (formerly known as 'Access Radio') stations are currently broadcasting, before moving on to look at applications for areas not involved in the pilot scheme. Ofcom expects to complete this round of the community radio awards process by early 2006.

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

Kip Meek, Chief Policy Partner (Chair)
Pam Giddy, Content Board Member
Matthew MacIver, Content Board Member for Scotland
Peter Bury, Director of Strategic Resources
Martin Campbell, Head of Radio Content
Peter Davies, Director, Radio & Multimedia
Neil Stock, Head of Radio Planning & Licensing

A summary and assessment of each application was presented to the RLC at its meeting on 12 December 2005. 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.

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