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The local radio multiplex licence for North Wales was awarded on 24 June 2008 to MuxCo Wales Ltd.

North Wales licence award decision

In relation to sections 51(2)(a) and (b) of the Broadcasting Act 1996, MuxCo Wales Limited (‘MuxCo’) intends to launch its service within two years of licence award using two transmitters at Moel-y-parc and Great Ormes Head. It estimates that this network of transmitters will provide ‘outdoor coverage’ (e.g. to in-car and mobile receivers) to 49.9% of the adult (aged 15+) population of North Wales, and the higher strength ‘indoor coverage’ (e.g. to kitchen radios) to 42.1% of the adult population. The Radio Licensing Committee (RLC) noted that an additional frequency (10D) had been made available for this licence for the western part of the licensed area. However, in the licence advertisement it was made clear that it will be difficult to implement the 10D frequency until analogue television switch-off in Ireland. In this context, the RLC considered the proposals to offer an adequate level of coverage to North Wales.

MuxCo proposes to launch with six linear local digital sound programme services, a podcast service (details of which are set out in the table below), and BBC Radio Wales and BBC Radio Cymru. The RLC considered the proposed timetable for launching the multiplex and rolling out coverage to be realistic.

With regard to section 51(2)(c), the RLC noted that MuxCo Wales Limited brought together MuxCo and Town and Country Broadcasting. Town and Country Broadcasting operates five local analogue services in Wales and is an investor and service provider for each of the North East Wales and West Cheshire, Herefordshire and Worcestershire, Mid and West Wales and Gloucestershire multiplexes. MuxCo’s executives have considerable experience in the management of local DAB multiplexes and the operation of digital 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 sections 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 (Coast FM and Champion FM). MuxCo plans to broadcast four further services, Wales Live, UCB UK, Traffic Radio (Welsh Language) and Traffic Radio (English Language), which are not currently available in the North Wales area. 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 geographical emphasis.

The Committee considered that the proposed multiplex line-up would broaden local digital choice by offering local services specific to the North Wales area on DAB for the first time, combined with the three new services which would be available in the area for the first time.

With regard to section 51(2)(f), RAJAR data confirm the popularity of the multiplex’s proposed local services (particularly Champion FM). MuxCo also conducted a methodologically robust programme of quantitative research in the local market.

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

• The implementation within two years of the two transmitters proposed in the application, or of a network of transmitters and transmission parameters offering broadly equivalent coverage.
• The provision of seven local digital sound programme services (including the podcast service) 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
Classic Hits	Coast FM	Gcap Media Plc
Current and Classic Hits	Champion FM	Gcap Media Plc
Full service	Wales Live	Town and Country Broadcasting
Religious	UCB UK	United Christian Broadcasters
Traffic and Travel	Traffic Radio (English Language)	To be confirmed
Traffic and Travel	Traffic Radio (Welsh Language)	To be confirmed
Varied	Podcast Service	Folder Media Limited

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

This local radio multiplex service will also transmit BBC Radio Wales and BBC Radio Cymru.

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 North Wales 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 North Wales local radio multiplex licence was advertised on 20 February 2008. By the closing-date of 21 May 2008, one application was received, as follows:

MuxCo Wales 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
Peter Davies, Director of Radio Policy and Broadcast Licensing
Pam Giddy, Content Board member
Joyce Taylor, Content Board member
Stewart Purvis, Partner, Content & Standards

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 services 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 its 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 the application under each of the statutory criteria was presented to the RLC at its 24 June 2008 meeting. The information included in this paper was drawn the from the application and the subsequent responses to questions of clarification and/or amplification.

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