77/00 24 May 2000

The Radio Authority has today (24 May) published the details of its assessment of the local digital multiplex licence award for Teesside. The Authority awarded the licence to Emap Digital Radio Ltd. on 11 May 2000.

LOCAL DIGITAL RADIO MULTIPLEX SERVICE: TEESSIDE

The local digital radio multiplex service licence for Teesside was awarded to Emap Digital Radio Ltd. on Thursday 11 May 2000, to run for twelve years from the date the service commences broadcasting.

1. Coverage area and timetable

The licence was offered to Emap Digital Radio Ltd. on the understanding that the proposed launch date of the service is June 2001. Emap will be using two transmitters at Eston Nab and Brusselton to provide ‘outdoor coverage’ to an estimated 94% of the adult (aged 15+) population of the ‘primary protected area’.

 

2. Ability to establish and maintain the service

Emap is one of the main operators in UK commercial radio and has already been involved in seven successful applications for local digital multiplex licences. The Authority had no doubt about Emap Digital Radio Ltd.’s ability to establish and maintain the service proposed in the application.

 

3. Catering for tastes and interests of people in the area

The commercial programme services proposed by the applicant are as follows:

Gold Classic Gold (programme provider: GWR Radio Ltd.)

Adult Contemporary Programme provider: The Wireless Group

Hot AC Programme provider: to be decided

Dance Kiss (programme provider: Emap Radio Ltd.)

Easy Listening Magic 1170 (programme provider: Emap Radio Ltd.)

Contemporary Hit Radio 96.6 TFM (programme provider: Emap Radio Ltd.)

Modern Rock Xfm (programme provider: Capital Radio plc)

Both Capital for Xfm and Emap for Kiss have committed to provide local news and travel information at breakfast time when household penetration reaches 34%. The same approach to local content will be adopted in the adult contemporary service provided by The Wireless Group. GWR’s Classic Gold service will be a relay of the existing analogue service and, as in other areas, will contain four hours of local

programming from day one. Members are aware that there is no explicit obligation for local digital multiplex licensees to provide localised services. However, section 85(3)(a) of the 1990 Broadcasting Act gives the Radio Authority an overarching statutory obligation to ensure the provision of licensed services of ‘high quality’, and Members view local content as forming an essential element of quality.

 

4. Broadening the range of local digital programme services

 

As there are no local digital programme services available in the Teesside area, and as this was the sole application, this criterion was effectively satisfied by default.

 

5. Local support

 

In order to fulfil this category Emap Digital Radio Ltd. chose to elicit support letters from selected local representatives in order to illustrate the high esteem in which its local services, TFM and Magic 1170, are held. Thirty-eight letters of support, including three from local MP’s, accompanied the application. Emap also used the fact that the combined reach of these services amounted to "42% of all adults" in Teesside according to RAJAR, to demonstrate local support.

 

6. Fair and effective competition

The Authority has no reason to believe that the applicant has not acted in a manner calculated to ensure fair and effective competition when contracting or offering to contract with potential or proposed service providers. In accordance with the licence conditions pursuant to the Broadcasting Act 1996, the Authority will keep matters of fair and effective competition and undue discrimination under regular review.

Background

 

Applications for this licence were invited on 19 November 1999. By the closing date of 14 March 2000, one application had been received, from Emap Digital Radio Ltd., a wholly owned subsidiary of Emap Radio Ltd.

Copies of the non-confidential section of the application were made available for public inspection in Middlesbrough Central Library and at the Authority’s offices in London. A notice was issued on 14 March 2000 inviting public comments on the application. Under the terms of section 51(2) of the Broadcasting Act 1996, when considering whether, or to whom, to award a local digital radio multiplex licence, the Authority must have regard to the following specific matters:

1. the extent of the coverage area as proposed by the applicant;

 

2. the timetable relating to achievement of the proposed coverage area and the start of broadcast services;

 

3. the ability of the applicant to establish the proposed service and to maintain it throughout the period for which the licence will be in force;

 

4. the extent to which the digital programme services proposed to be included in the service would cater for the tastes and interests of persons living in the area and, where it is proposed to cater for particular tastes and interests, the extent to which those services would in fact cater for those tastes and interests;

 

5. the extent to which any proposed digital sound programme services would broaden the range of programmes available by way of local digital programme services in that area and, in particular, the extent to which they would cater for tastes and interests different from those already catered for by local digital programme services already provided in that area;

 

6. the extent to which the application is supported by persons living in the area; and

 

7. whether, in contracting or offering to contract with persons providing digital programme services or digital additional services, the applicant has acted in a manner calculated to ensure fair and effective competition in the provision of such services.

The Authority is also required to take account of any representations made in respect of the application.