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The local radio multiplex licence for Gloucestershire was awarded on 22 January 2008 to MuxCo Gloucestershire Ltd.

Gloucestershire licence award decision

In relation to sections 51(2)(a) and (b) of the Broadcasting Act 1996, MuxCo Gloucestershire (“MuxCo”) intends to launch its service by October 2008 using four transmitters at Churchdown Hill, Stroud, Blunsdon and Icomb Hill. It estimates that this network of transmitters will provide “outdoor coverage” (to in-car and mobile receivers, for example) to 84.2% of the adult (aged 15+) population of the licensed area, and higher strength “indoor coverage” (e.g. to kitchen radios) to 75.2% of the local adult population.. The RLC noted comments from two MPs disappointed that the proposals did not provide sufficient coverage to the Forest of Dean and Cotswold Hills, but given the economic challenges faced in providing a service to these areas, the RLC considered the proposals to offer a good level of coverage to Gloucestershire overall.

MuxCo proposes to launch with nine linear local digital sound programme services, a podcast service (details of which are set out in the table below), and BBC Radio Gloucestershire. A tenth service, Local Live, will commence broadcasting within nine months of the launch of the multiplex, to coincide with the launch of this service on the neighbouring Herefordshire and Worcestershire multiplex. The RLC considered the proposed timetable for launching the multiplex and rolling out coverage to be prudent, given that, the launch would be timed to coincide with the launch of the neighbouring Herefordshire and Worcestershire mulitplex, as well as the proposed launch of the second national digital multiplex, which would enable MuxCo to maximise the marketing opportunities at launch.

With regard to section 51(2)(c), the RLC noted that MuxCo Gloucestershire brought together UKRD Group Limited, MuxCo Ltd, Murfin Media and Town and Country Broadcasting. UKRD is the operator of the local service for Cheltenham, which would be served by this multiplex. MuxCo’s executives have considerable experience in the management of local DAB multiplexes and the operation of digital radio services. Both Murfin Media and Town and Country Broadcasting have experience in providing local radio services. The Committee felt that MuxCo’s business plan demonstrated the group’s ability to operate the multiplex over the term of the licence.

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 three existing local analogue services (Severn Sound, Gold and Star 107.5). In addition, MuxCo plans to broadcast seven further services; Smithy Rock, Local Live, Easy Radio, Shuffle, UCB UK, a variety rock and pop service and Traffic Radio, which are not currently available in the Gloucestershire area. Taken together, the RLC considered that this package of services would 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 Gloucestershire area on DAB for the first time, coupled with seven new stations which would therefore provide extension of choice to listeners in the area.

With regard to section 51(2)(f), MuxCo conducted a reasonably robust (in methodological terms) programme of quantitative research in the local market. 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 October 2008 of the four 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 ten local digital sound programme services (including the podcast service) 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)

Format description	Service name	Provider
Contemporary Hit Radio	Severn Sound	GCap Media plc
Gold	Gold	GCap Media plc
Local Full Service	Star 107.5	UKRD Group Ltd
Classic Rock	Smithy Rock	Murfin Media Ltd
Full Service	Local Live	Town and Country Broadcasting
Easy Listening	Easy Radio	Easy Radio Limited
Youth	Shuffle	MuxCo Gloucestershire Ltd
Variety Rock and Pop	Confidential	Confidential
Religious	UCB UK	United Christian Broadcasters
Traffic and Travel	Traffic Radio	Highways Agency/Traffic Link

• 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 Gloucestershire.

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 application for the Gloucestershire 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 Gloucestershire local radio multiplex licence was advertised in July 2007. By the closing-date of 24 October 2007, two applications were received, as follows:

MuxCo Gloucestershire Limited
NOWdigital Limited

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
Stewart Purvis, Partner, Content and Standards
Neil Stock, Head of Radio
Joyce Taylor, Content Board member

The application was circulated among all members of the RLC as well as among relevant Ofcom colleagues. A copy of the non-confidential section of the application was 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 application was received. The RLC took all replies into account when reaching its decision.

The 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 22 January 2008 meeting. The information included in this paper was drawn both from the application and the subsequent responses to questions of clarification and/or amplification.

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