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The local radio multiplex licence for Oxfordshire was awarded on 8 November 2007 to Now Digital (Oxford) Ltd.

Oxfordshire licence award decision

In relation to sections 51(2)(a) and (b) of the Broadcasting Act 1996, Now Digital intends to launch its service by October 2008 using three transmitters at Beckley, Boars Hill and Farthinghoe. It estimates that this network of transmitters will provide 'outdoor coverage' (to in-car and mobile receivers, for example) to 89% of the adult (aged 15+) population of the licensed area, and higher strength 'indoor coverage' (e.g. to kitchen radios) to 83% of the local adult population. The RLC considered the extent of the proposed coverage to be satisfactory, and that the proposed transmitter network would provide a robust signal within the licensed area of the county of Oxfordshire.

Now Digital proposes to launch with seven local digital sound programme services (details of which are set out in the table below), as well as BBC Radio Oxford, with an eighth programme service, MY-fm, launching six months after the start of the multiplex.

Overall, the RLC considered that Now’s proposed timetable for launching its services was realistic, particularly given that, with the exception of the proposed Adult Contemporary service, carriage agreements were already in place at the time of application with all of the proposed service providers.

In its assessment of section 51(2)(c), the RLC considered the business plan put forward by Now Digital to be credible, particularly given that the company’s shareholding structure brings together the two main commercial radio owners in Oxfordshire (GCap Media and Absolute Radio). In this respect, the RLC noted that Now Digital had been able to secure carriage agreements with three out of the four local commercial analogue services currently broadcasting to Oxfordshire (Fox FM, Oxford’s FM107.9 and Jack FM).

In relation to sections 51(2)(d) and (e), Now Digital’s proposed portfolio of programme services included the simulcast of three Oxfordshire analogue FM stations (Fox FM, Oxford's FM107.9 and the recently-launched Jack FM). It also proposes to broadcast a further five formats – Modern Rock (Xfm), Christian (UCB UK), traffic news (Traffic Radio), Soft Adult Alternative (MY-fm) and Adult Contemporary – which are not currently available to listeners in the Oxfordshire area, either on analogue or the DAB platform. It was noted by RLC members that MY-fm would be a new service, locally produced and presented from Oxfordshire (rather than networked from elsewhere), and providing an innovative music format that would be complementary to others proposed on the multiplex.

The Committee therefore considered that Now Digital’s proposed multiplex line-up would broaden local digital choice by offering a variety of local radio services specific to Oxfordshire on DAB for the first time, augmented by a spread of new stations and formats which would provide a genuine extension of choice to local listeners.

With respect to section 51(2)(f), Now provided RAJAR audience analysis for the area, and some evidence of support for the provision on DAB in Oxfordshire of Fox FM, Oxford's FM107.9 and Xfm through online surveys conducted amongst existing listeners in Oxfordshire to these stations.

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

• The implementation by October 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 service, with the proposed ‘Soft Adult Alternative’ programme service to launch within six months of the commencement of the multiplex service. (The RLC had agreed to a request from Now Digital for a non-substantive change to its application for the launch date of this service).
• The provision of eight local digital sound programme services as proposed in the application (and summarised below):

Format description	Service name	Provider
Contemporary and chart music	Fox FM	GCap Media plc
Hit music, dance and R&B	Oxford’s FM 107.9	Absolute Radio
Variety pop and rock	Jack FM	Absolute Radio
Modern Rock	Xfm	GCap Media plc
Adult Contemporary	To be confirmed	To be confirmed
Soft Adult Alternative	MY-fm	Absolute Radio
Religious	UCB UK	United Christian Broadcasters
Local 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 Oxford.

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 Oxfordshire 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 Oxfordshire local radio multiplex licence was advertised in May 2007. By the closing-date of 7 August 2007, two applications were received, as follows:

MuxCo Oxfordshire Ltd.
Now Digital (Oxford) 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
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 8 November 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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