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The local radio multiplex licence for Herefordshire and Worcestershire was awarded on 6 September 2007 to MuxCo Hereford & Worcester Ltd.

Herefordshire and Worcestershire licence award decision

In relation to sections 51(2)(a) and (b) of the Broadcasting Act 1996, MuxCo Hereford & Worcester (‘MuxCo’) intends to launch its service by September 2008 using three transmitters at Ridge Hill, Malvern and Bromsgrove. It estimates that this network of transmitters will provide 'outdoor coverage' (to in-car and mobile receivers, for example) to 79.7% of the adult (aged 15+) population of the licensed area, and higher strength 'indoor coverage' (e.g. to kitchen radios) to 66.6% of the local adult population. While the Radio Licensing Committee (RLC) noted some comparative deficiencies in coverage around the Redditch area of Worcestershire, given that this area already has access to DAB digital radio from the West Midlands local radio multiplex service it considered that the MuxCo proposal was, in the circumstances, acceptable.

MuxCo proposes to launch with eight local digital sound programme services (details of which are set out in the table below), including BBC Radio Hereford and Worcester. A ninth service, Local Live, will commence broadcasting within nine months of the launch of the multiplex. The RLC considered the proposed timetable for launching the multiplex and rolling out coverage to be realistic, given the largely music-based nature of the proposed new services and the utilisation of the shareholders’ existing technical resources. It was felt that the extra time allocated for the launch of Local Live, was prudent, given the station’s relatively high speech minimum of 30%.

With regard to section 51(2)(c), the RLC considered that although MuxCo is a new company, many of its executives have extensive experience in the management of local DAB multiplexes and the operation of digital radio services. Furthermore, it was noted MuxCo shareholders include established radio companies with knowledge of local markets. The Committee felt that MuxCo’s business plan demonstrated the group’s ability to operate the multiplex over the term of the licence, although it was acknowledged that there was no definite agreement in place with GCap Media for the proposed carriage of Wyvern FM.

In relation to section 51(2)(d) and (e), the RLC noted that MuxCo’s proposed bouquet of local digital sound programme services includes simulcasts of two existing local analogue services (Wyvern FM and Sunshine 954/1530). In addition, MuxCo plans to broadcast five further services – Traffic Radio, Easy Radio, Smithy Rock, Shuffle and Local Live – which are not currently available in the Herefordshire and Worcestershire area either on analogue or via the West Midlands DAB multiplex (which overlaps the coverage area of this multiplex). Taken together, it was felt that this package of services would be likely to appeal to a broad range of listeners in the area through their differing formats and target demographics.

The Committee considered that the proposed multiplex line-up would broaden local digital choice by offering local services specific to the Herefordshire and Worcestershire area on DAB for the first time, coupled with a range of new stations which should therefore provide an extension of choice to listeners in the Herefordshire and Worcestershire area.

With regard to section 51(2)(f), MuxCo conducted a reasonably robust (in methodological terms) programme of quantitative research in the local market, although the RLC noted that the applicant could have demonstrated a stronger link between the results of its format research and the final line up of programme services proposed. Ofcom also received several letters of support for MuxCo’s application from individuals based in the local area.

The Radio Licensing Committee agreed that the following commitments should be included as conditions of MuxCo’s licence when granted:

• The implementation by September 2008 of the three transmitters and transmission parameters proposed in the technical plan, or of a network of transmitters and transmission parameters offering broadly equivalent coverage.
• The provision of seven local digital sound programme services from the launch of the multiplex service, plus a further one to launch within nine months.
• The provision of the local digital sound programme services as proposed in the application (and summarised below), with a change of Format description for Sunshine 954/1530 from “Gold” to “Classic Pop”.

Format description	Service name	Provider
Contemporary Hit Radio	Wyvern FM	GCap Media plc
Classic Pop	Sunshine 954/1530	Classic Hits Radio Ltd
Classic Rock	Smithy Rock	Murfin Media Ltd
Youth	Shuffle	MuxCo Hereford & Worcester Ltd
Full Service	Local Live	Town & Country Broadcasting Ltd
Easy Listening	Easy Radio	Easy Radio Limited
Religious	UCB UK	United Christian Broadcasters Ltd
Traffic and Travel	Traffic Radio	Highways Agency

• The provision of the local digital sound programme services listed above with the audio characteristics (e.g. stereo or mono) proposed in the application.

This local radio multiplex service will also transmit BBC Radio Hereford and Worcester.

The following pages set out the statutory requirements relating to local radio multiplex licensing, and details of the licensing process. Further information about these, and detailed information relating to the applications for the Herefordshire and Worcestershire licence, can be found at:
http://www.ofcom.org.uk/radio/ifi/rbl/dcr/

Statutory requirements relating to local radio multiplex licensing

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.

Specific local radio multiplex licence award criteria

In considering the applications it receives for local radio multiplex licences, Ofcom is required to have regard to each of the statutory criteria set out in section 51(2) of the Broadcasting Act 1996. These are as follows:

1. the extent of the coverage area proposed to be achieved by the applicant
2. the timetables proposed by the applicant for achieving the stated coverage (i.e. transmission roll-out) and for the commencement of broadcasting of the digital sound programme services proposed;
3. the ability of the applicant to establish the proposed service and to maintain it throughout the period for which the licence would be in force;
4. the extent to which the digital sound programme services (other than BBC services) proposed to be included in the service would cater for the tastes and interests of persons living in the area or locality for which the service is to be provided and, where it is proposed to cater for any particular tastes and interests of such persons, the extent to which those services would cater for those tastes and interests;
5. the extent to which any such digital sound programme services would broaden the range of programmes available by way of local digital sound programme services to persons living in the area or locality for which it is to be provided and, in particular, the extent to which they would cater for tastes and interests different from those already catered for by local digital sound programme services provided for that area or locality
6. the extent to which there is evidence that, amongst persons living in that area or locality, there is a demand for, or support for, the provision of the proposed service; and
7. whether, in contracting or offering to contract with persons providing digital sound programme services, television licensable content services or digital additional services, the applicant has acted in a manner calculated to ensure fair and effective competition in the provision of those services.

The legislation does not rate these requirements in order of priority, but it may be that Ofcom will regard one or more of the criteria as being particularly important in view of the characteristics of the licence to be awarded and the applications for it.

Process for assessment of applications

The Herefordshire and Worcestershire local radio multiplex licence was advertised in March 2007. By the closing-date of 6 June 2007, two applications were received, as follows:

MuxCo Hereford & Worcester Ltd.
NOWdigital Ltd.

The membership of Ofcom's Radio Licensing Committee (RLC) for this licence award was as follows:

Philip Graf, Ofcom Deputy Chairman (Chair)
Peter Bury, Director of Strategic Resources
Martin Campbell, Chief Advisor, Radio
Peter Davies, Director of Radio and Convergent Media
Pam Giddy, Content Board member
Neil Stock, Head of Radio
Joyce Taylor, Content Board member

The applications were circulated among all members of the RLC as well as among relevant Ofcom colleagues. Copies of the non-confidential sections of the applications were made available for public scrutiny on the Ofcom website, and public comment on the local radio needs of listeners in the area, and the type of service required, was invited on the day after the applications were received. The RLC took all replies into account when reaching its decision.

Each applicant was then invited to respond, within a two-week period, to written questions of clarification and/or amplification on aspects of their proposals. The non-confidential questions and responses were subsequently made available for public scrutiny on the Ofcom website.

A paper which summarised the issues of relevance for each application under each of the statutory criteria was presented to the RLC at its 6 September 2007 meeting. The information included in this paper was drawn both from the applications and the subsequent responses to questions of clarification and/or amplification.

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