2/02                                                                                                            4 January 2002

The Radio Authority has today (4 January) published the details of its assessment of the local digital multiplex licence award for Inverness. The Authority awarded the licence to Score Digital Ltd. on 14 December 2001.

A copy of the full assessment is attached.

The Radio Authority is responsible for licensing and regulating Independent Radio in accordance with the statutory requirements of the Broadcasting Acts 1990 and 1996. It plans frequencies, awards licences, regulates programming and advertising, and plays an active role in the discussion and formulation of policies which affect the Independent Radio industry and its listeners.

The local digital radio multiplex service licence for the Inverness area was awarded to the sole applicant, SCORE Digital Ltd. (Scottish Radio Holdings plc), on 14 December 2001. The licence will run for twelve years from the date the service commences broadcasting. The licence was advertised on 19 July 2001, with a closing date of 16 October.

In making this award to SCORE Digital Ltd. the Radio Authority was mindful of the exceptional nature of the licence area. No other digital provision is yet available in the area, and Members took the view that the importance of ensuring that listeners in the most remote and rural areas of the country had access to digital radio outweighed the relative weakness of some of the proposals. It was to be hoped that the award might serve to encourage the roll-out of further digital services for the Highlands.

1. Coverage area and timetable

SCORE Digital Ltd. estimates that it will achieve 'outdoor coverage' of only 38.5% of the 'Primary Protected Area' (PPA), although the Authority's engineers believe that this estimate might be somewhat conservative, and that in practice a higher percentage may receive the service. That only a low proportion of the PPA is to be covered is due to the mountainous terrain in the area, the scattered nature of the population and sheer size of the PPA, but also to the fact that SCORE proposes using only one transmitter, at Mounteagle. SCORE has stated that it will consider adding a second transmitter, at Knockmore, at a later date, something which the Authority would strongly encourage. The award of the licence was made conditional upon the applicant meeting the revised launch date which it had proposed for the commencent of its multiplex service, of July 2003.

2. Ability to establish and maintain the service

SCORE Digital Ltd. is a wholly-owned subsidiary of Scottish Radio Holdings plc, the major radio operator in Scotland, which already has existing interests as a digital multiplex operator. On the basis of the financial forecasts provided, the Authority considered that the application was a viable proposition, and that the company had the funding and experience to establish and maintain the service.

The commercial programme services proposed in the application are as follows:

It is proposed that 3C and MFR 1107 MW will occupy one channel on the multiplex on a time-share basis.

Members were disappointed by the limited number of services in the programme bouquet, but recognised that SCORE had found difficulty in attracting other programme providers for this multiplex. MFR, the licensee for Inverness whose local analogue service will be simulcast by the multiplex, reaches an impressive 55% of the adult (15+) population in its TSA, and achieves a 29% share of all radio listening. According to recent RAJAR figures provided by the applicant, MFR has a broad appeal across adults of all ages and consequently can be seen to be catering well for the tastes and interests of people in the area. MFR 1107 MW will provide three hours of specialist programming per evening, with music genres ranging from traditional Scottish to jazz, classical and gospel. Members were disappointed by the absence of any proposals to include local content in the non-simulcast country music service, 3C, either at launch or at any point in the future.

This criterion has been effectively satisfied by default because no other local multiplex covering the area has so far been licensed.

SCORE used existing RAJAR data and conducted an audience survey in order to demonstrate the demand for the services proposed for inclusion on the multiplex. The group's promotional activity generated a number of endorsements from the local community, including some locally-elected representatives.

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.

Copies of the non-confidential section of the application were made available for public inspection in the reference section of Inverness Library, and at the Authority’s offices in London. A notice was issued on 16 October 2001 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.