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The local radio multiplex licence for Northamptonshire was awarded on 11 October 2007 to NOWdigital Limited.

Northamptonshire licence award decision

The licence attracted two applicants who submitted proposals which were similar in both quality and nature, making this award a particularly difficult decision for Ofcom's Radio Licensing Committee (RLC). The RLC considered however that NOWdigital Limited should be awarded the local radio multiplex licence for Northamptonshire for the reasons set out below.

In relation to sections 51(2)(a) and (b) of the Broadcasting Act 1996, NOWdigital Limited intends to launch its service by September 2008 using three transmitters at Northampton, Geddington and Daventry. It estimates that this network of transmitters will provide 'outdoor coverage' (to in-car and mobile receivers, for example) to 91.92% of the adult (aged 15+) population of the licensed area, and higher strength 'indoor coverage' (e.g. to kitchen radios) to 84.29% of the local adult population. The RLC considered the extent of the proposed coverage to be very satisfactory.

NOWdigital proposes to launch with nine local digital sound programme services (details of which are set out in the table below), as well as BBC Radio Northampton. The RLC considered NOWdigital's proposed timetables for launching the service to be realistic.

With regard to section 51(2)(c), the RLC considered the business plans put forward by NOWdigital and MuxCo to be both robust and credible. The RLC considered in particular that NOWdigital's experience as a multiplex operator, including its operation of the neighbouring local radio multiplex services in each of Peterborough, Leicester and Coventry, enhanced its ability to establish and maintain its proposed service.

In relation to section 51(2)(d) and (e), the RLC noted that NOWdigital’s proposed bouquet of local digital sound programme services includes simulcasts of three existing local analogue services (Northants 96, Gold and Connect FM). In addition, NOWdigital plans to broadcast five further services - XFM, an adult contemporary service, UCB UK, Traffic Radio, Jack FM and Sabras Radio - which are not currently available in the Northamptonshire area. The RLC welcomed the provision of an Asian service to the area for the first time, and noted that Jack FM and XFM were committed to providing news and information specific to the Northamptonshire area. Taken together, it was felt 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 Northamptonshire area on DAB for the first time, coupled with a range of new stations which would therefore provide an extension of choice to listeners in the Northamptonshire area.

With regard to section 51(2)(f), NOWdigital provided evidence of demand for the provision of the XFM service, while RAJAR data confirm the local popularity of Northants 96 and Connect FM, both of which will be available by way of this new local radio multiplex service.

The Radio Licensing Committee agreed that the following commitments should be included as conditions of NOWdigital’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 nine 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):

Format description	Service name	Provider
Contemporary and Chart	Northants 96	GCap Media plc
Gold	Gold	GCap Media plc
Modern Rock	XFM	GCap Media plc
Adult Contemporary and Classic Hits	Connect FM	Forward Media Ltd
Adult Contemporary	To be confirmed	To be confirmed
Variety pop and rock	Jack FM	Absolute Radio International Ltd
Religious	UCB UK	United Christian Broadcasters Ltd
Traffic and Travel	Traffic Radio	Highways Agency
Asian	Sabras Radio	Sabras Sound Ltd

• 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 Northampton.

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 Northamptonshire 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 Northamptonshire local radio multiplex licence was advertised in April 2007. By the closing-date of 3 July 2007, two applications were received, as follows:

MuxCo Northamptonshire 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 11 October 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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