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At its meeting on Thursday 11th May, Ofcom's Radio Licensing Committee ('RLC') awarded eight community radio licences. These awards are the last in Ofcom's first round of community radio licensing, which began with the receipt of 194 applications in November 2004. From these, Ofcom has now awarded a total of 107 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 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).

Groups awarded a licence

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

1. 7 Waves Radio (Wirral, Merseyside)
2. Talkin' Toxteth TTFM (Liverpool)
3. Halton FM, (Runcorn, Merseyside)
4. Cheshire FM (Mid Cheshire)
5. Diversity FM (Lancaster)
6. Chelmsford Calling (Chelmsford, Essex)
7. Saint FM (Burnham-On-Crouch, Essex)
8. BRFM (Isle of Sheppey, Kent)

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

1. 7 Waves Radio (Wirral, Merseyside): This group will serve the population of Leasowe and surrounding areas on the Wirral, with a particular focus on the elderly and disadvantaged members of this wider community. With previous RSL broadcasting experience locally (1a), programming proposals were considered to be particularly well-defined in terms of catering for the tastes and interests of members of the target community (1b). With wider proposals also demonstrating a clear understanding of its target community, this group has obtained considerable local support (1d) and intends to develop its full time community-based radio service to support the delivery of media training and other 'social gain' provision (1e). The accountability proposals put forward by this group (1f) were considered to be particularly strong.

2. Talkin' Toxteth TTFM (Liverpool): This group put forward a set of well-developed and well-rounded proposals which were clearly focussed on its target multicultural, inner-city, community. With RSL and other broadcast experience (1a) behind its plans, this group put forward programming proposals likely to be of considerable relevance to members of its target community (1b) and which would also broaden available choice locally (1c). With 'social gain' proposals which were considered to be both relevant and reasonably well-developed, the accountability proposals put forward by this group (1f) were also considered to be strong.

3. Halton FM, (Runcorn, Merseyside): Seeking to serve the community living, working, or undergoing training or education in the borough of Halton, this applicant's ability to maintain its proposed service (1a) was considered a particular strength. Its programming proposals were considered likely to be relevant to members of its target community (1b) and to broaden available choice locally (1c). 'Social gain' delivery (1e) and accountability measures (1f) were considered to be above average, with the group's approach to ensuring access to, and training in, the use of broadcasting facilities (1g), considered to be a particularly strong aspect of its overall proposals.

4. Cheshire FM (Mid Cheshire): This group brings previous broadcasting experience at board level to its proposals (1a) which, in terms of programming, were felt likely to cater for the tastes and interests of members of its target community (1b). Seeking to serve a relatively rural community, this group's plans were well- supported (1d) and well-developed in terms of the mechanisms and specific approaches taken to ensure the delivery of 'social gain' (1e).

5. Diversity FM (Lancaster): A community station for those who live, work or study in Lancaster, this application is from a group with RSL broadcasting experience, the two main parties involved being Lancaster YMCA and St. Martin's College (1a). Programming proposals which were considered to be relevant to the tastes and interests of members of the target community (1b) and likely to broaden available choice locally (1c) comprised part of this group's overall plans which were well supported locally (1d). 'Social gain' delivery (1e), accountability mechanisms (1f) and the approach taken to ensuring the provision of access to, and training in, the use of this group's broadcasting facilities (1g) were each considered to be particularly strong.

6. Chelmsford Calling (Chelmsford, Essex): This group put forward strong proposals for the provision of a community-based service seeking to serve the retired population of Chelmsford. Ofcom considered its ability to maintain the proposed service (1a), the relevance of its programming proposals to the tastes and interests of members of its target community (1b), and the degree to which such proposals would broaden choice (1c), to be particularly strong. Proposals for the delivery of 'social gain' (1e) were considered to be of above average quality, whilst mechanisms to ensure accountability (1f) and the provision of access to, and training in, the use of the group's broadcasting facilities (1g) were each also considered to be adequate.

7. Saint FM (Burnham-On-Crouch, Essex): This group will broadcast to a relatively rural area on the Essex Coast, south of Chelmsford. With considerable previous RSL broadcasting experience over several years (1a), its programming proposals were considered likely to cater for the tastes and interests of members of the target community (1b) and to broaden available choice locally (1c). This group's plans were well-supported locally (1d) and considered adequate in terms of specific proposals for the provision of 'social gain' (1e), accountability mechanisms (1f) and access to, and training in, the use of its technical facilities (1g).

8. BRFM (Isle of Sheppey, Kent): Based in Sheerness, the main population centre on the Isle of Sheppey, this group is seeking to serve the geographical 'community of place' on the island. An amalgamation of several previous RSL broadcasters, this group is experienced and well-resourced (1a). Its programming proposals were felt to be likely to be of particular relevance to members of its target community (1b), and its overall proposals were very well supported locally. Plans for the provision of 'social gain' (1e) were considered to be of above average quality, whilst mechanisms to ensure the group's accountability to members of its target community (1f) and practical steps to provide access to, and training in, the use of the group's technical facilities (1g) were both felt to be particular strengths of the group's wider plans.

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.

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 our website. Ofcom has now completed this first round of the community radio awards process, and expects to begin a second round later this year.

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
Peter Davies, Director, Radio & Multimedia
Peter Bury, Director of Strategic Resources
Martin Campbell, Head of Radio Content
Neil Stock, Head of Radio Planning & Licensing

A summary and assessment of each application was presented to the RLC at its meeting on Thursday 11th May 2006. 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.

May 2006

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