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The local radio multiplex licence for Hertfordshire, Bedfordshire and Buckinghamshire was awarded on 12 June 2007 to NOWdigital Ltd.

Hertfordshire, Bedfordshire and Buckinghamshire licence award decision.

In relation to sections 51(2)(a) and (b) of the Broadcasting Act 1996, NOWdigital proposes to launch its service by July 2008 using seven transmitters. It estimates that this network of transmitters will provide 'outdoor coverage' (e.g. to in-car and mobile receivers) of 87% of the adult (aged 15+) population of Hertfordshire, Bedfordshire and Buckinghamshire, and higher strength 'indoor coverage' (e.g. to kitchen radios) of 75% of the local adult population. It is also proposed that the service will launch with all eight local digital sound programme services proposed to be carried on the multiplex (details of which are set out below). The RLC considered NOWdigital's proposed timetables for launching the service and rolling out coverage to be realistic, especially in light of the fact that it has firm agreements with all of its proposed service providers, and all except one of these is already broadcasting. The extent of coverage proposed was considered to be reasonable, with most of the major population centres and transport routes in the area likely to receive good coverage.

With regard to section 51(2)(c), the RLC considered that NOWdigital’s extensive experience as a multiplex operator (the company, which is a wholly-owned subsidiary of GCap Media plc, already operates – alone or with partners – 19 local radio multiplex services) enhanced its ability to establish and maintain its proposed service. The Committee also felt that NOWdigital's business plan for this local radio multiplex service, which is by far the largest (in population terms) of those for which licences are planned to be advertised by Ofcom, was sustainable, with a strong security of income given that all of the proposed service providers have signed firm agreements and the majority are to be provided by GCap Media, the parent company of NOWdigital.

In relation to section 51(2)(d),the RLC noted that NOWdigital’s proposed bouquet of local digital sound programme services includes simulcasts of four existing local analogue services together with a further four services which will be available in the area on DAB only (i.e. non-simulcasts). The Committee considered that the proposed multiplex line-up offered a good balance of the largest (in geographical coverage terms) and most popular (in audience terms) existing local services and non-simulcast services designed to appeal to particular tastes and interests, and felt that together these services are likely to have appeal to a broad range of listeners in terms of age and musical tastes. Locally-relevant content will be included in the four simulcast services and also in three of the four non-simulcast services. In relation to section 51(2)(f), NOWdigital provided evidence of a strong local demand for the provision of the Xfm service, while RAJAR data confirm the popularity of the two Chiltern FM services (for Bedford and Luton) and Horizon Radio, all of which will be available by way of this new local radio multiplex service.

In terms of the extent to which NOWdigital's proposed digital sound programme services would broaden the choice of local DAB services for listeners in Hertfordshire, Bedfordshire and Buckinghamshire (section 51(2)(e)), the RLC noted that all of the proposed services would be new to listeners in the part of the licensed area not already served by the digital radio stations available by way of the three Greater London multiplexes, while listeners in the southern part of the licensed area will for the first time be able to listen to the most popular existing local services in digital quality, and will also have access to a brand new service in Jack FM.

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

• The implementation by July 2008 of the seven transmitters (including either Stevenage (Pin Green) or Brookmans Park) and transmission parameters proposed in the application, or alternative transmission sites and parameters which offer broadly equivalent coverage;
• The provision of all eight local digital sound programme services from the launch of the multiplex service;
• The provision of the local digital sound programme services as proposed in the application (and summarised below):

Contemporary Chart Hits	97.6 Chiltern FM	(provider: GCap Media Digital Ltd.)
Contemporary Chart Hits	96.9 Chiltern FM	(provider: GCap Media Digital Ltd.)
Contemporary Chart Hits	Horizon Radio	(provider: GCap Media Digital Ltd.)
Classic Hits	Classic Gold 792	(provider: Classic Gold Digital Ltd.)
Modern Rock	Xfm	(provider: GCap Media Digital Ltd.)
Chill out	Chill	(provider: GCap Media Digital Ltd.)
Classic Rock and Pop	Jack	(provider: Absolute Radio Int Ltd.)
Religious	UCB UK	(provider: UCB Ltd.)

This local radio multiplex service will also provide BBC Three Counties Radio.

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 Hertfordshire, Bedfordshire and Buckinghamshire 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 Hertfordshire, Bedfordshire and Buckinghamshire local radio multiplex licence was advertised on 14 December 2006. By the closing-date of 28 March 2007, two applications were received, as follows:

MuxCo Home Counties 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)
Tim Suter, Partner, Content and Standards (Deputy 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 12 June 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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