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The local radio multiplex licence for Surrey and northern Sussex was awarded on 22 April 2008 to MuxCo Surrey and North Sussex Ltd.

Surrey and northern Sussex licence award decision

In relation to sections 51(2)(a) and (b) of the Broadcasting Act 1996, MuxCo Surrey and North Sussex Ltd (“MuxCo”) intends to launch its service by July 2009 using four transmitters at Guildford, Reigate, Midhurst and Leatherhead. It estimates that this network of transmitters will provide “outdoor coverage” (to in-car and mobile receivers, for example) to 87.4 % of the adult (aged 15+) population of the licensed area, and higher strength “indoor coverage” (e.g. to kitchen radios) to 56.6% of the local adult population.

MuxCo proposes to launch with eight local digital sound programme services (details of which are set out in the table below), and BBC Southern Counties Radio. It was noted that one of the services would be a new “podcast service” which would “include material of a local nature”. The RLC considered the proposed timetable for launching the multiplex and rolling out coverage to be realistic, given that MuxCo has carriage agreements in place with all but one of the proposed service providers.

With regard to section 51(2)(c), the RLC noted that MuxCo Surrey and North Sussex brought together UKRD Group Ltd (“UKRD”) and MuxCo Ltd. UKRD operates local heritage stations 96.4 Eagle Radio and County Sound, and brings extensive knowledge of the western half of the licensed area. Meanwhile 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 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 (96.4 Eagle Radio, County Sound and 102.7 Mercury FM). In addition, MuxCo plans to broadcast three further services – NME Radio, Shuffle and Traffic Radio’s regional service for the South East - which are not currently available in the Surrey and northern Sussex area either on analogue or via the three Greater London DAB multiplexes (which overlap much of the coverage area of this multiplex), and one service – Easy Radio – which will extend choice for listeners in the non-overlapped 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 Surrey and northern Sussex area on DAB for the first time, coupled with three new stations and a podcast service which would therefore provide an extension of choice to listeners in the area.

With regard to section 51(2)(f), MuxCo conducted a programme of quantitative research in the local market, including the analysis of RAJAR data to confirm the local popularity of Eagle Radio and Mercury FM, which will be available by way of this new local radio multiplex service. The RLC noted the strong support for the application demonstrated in responses to a survey by Eagle Radio of local elected representatives and businesses.

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

• The implementation by July 2009 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 eight 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
Full service	96.4 Eagle Radio	UKRD Group
Classic Hits	County Sound	UKRD Group
Contemporary Hit Radio	Mercury FM	GCap Media
Easy Listening	Easy Radio	Easy Radio Ltd
Modern Rock	NME Radio	DX Media Ltd
Youth	Shuffle	Muxco S&S Ltd
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 Southern 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 application for the Surrey and northern Sussex 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 Surrey and northern Sussex local radio multiplex licence was advertised in December 2007. By the closing-date of 26 March 2008, one application was received, as follows:

MuxCo Surrey & North Sussex 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 Policy and Broadcast Licensing
Pam Giddy, Content Board member
Stewart Purvis, Partner, Content and Standards
Neil Stock, Head of Broadcast Licensing
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.

A paper which summarised the issues of relevance for the application under each of the statutory criteria was presented to the RLC at its 22 April 2008 meeting.

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