108/03

13 October 2003

Smooth FM Ltd, a wholly owned subsidiary of Guardian Media Group plc, has submitted an application for the Radio Authority’s new Independent Local Radio licence for Glasgow, along with twelve other applicants (see press release 81/03 for details).

Under the terms of the Broadcasting Act 1996, a national newspaper group who has a national market share of 20% or less may provide a local radio service unless the Authority determines that the proposed arrangement could be expected to operate against the public interest. Guardian Media Group publishes the Guardian and Observer newspapers which between them have approximately 6.2% share of the national newspaper market. For the purposes of this test, 'national' refers to the UK as a whole.

In March 2000, the Radio Authority undertook a full public consultation on these issues and determined that if another wholly owned subsidiary of Guardian Media Group plc were to be awarded a regional radio licence, this arrangement could not be expected to operate against the public interest. The Authority is not aware of any new matters which would alter this view.

The Authority is minded therefore to determine that, in relation to cross-media issues, the public interest would not be adversely affected if Smooth FM Ltd were to be awarded the licence for Glasgow. In coming to this preliminary view, the following matters have been considered:

• Any economic benefits (such as, for example, technical development or an increase in employment or in the value of goods and services exported) that might be expected to result from the holding of the licence by that body but could not be expected to result from the holding of the licence by a body corporate which was not, and was not connected with, the proprietor of a newspaper, and

• The effect of the holding of the licence by that body on the proper operation of the market within the broadcasting and newspaper industries or any section of them.

Before making a final determination, the Authority is inviting comments on these points which should be addressed to the Legal and Licensing Officer, The Radio Authority, Holbrook House, 14 Great Queen Street, London WC2B 5DG, and should reach the Authority by 24 October 2003.

1. Smooth FM Ltd's public interest test submission is available for viewing at the Authority's offices by appointment. Please contact the Press & Information Office for details.
   
2. The Radio Authority is also conducting a radio-specific short form public interest test on Smooth FM's application for Glasgow. See press release 107/03 for details.
   
3. 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.
   
4. At the end of this year, the Radio Authority will cease to exist, and its responsibilities for licensing and regulating Independent Radio will pass to Ofcom, the new converged regulator for the communications sector. See the Ofcom transitional website at www.ofcom.org.uk for more details.

Contact:
Press enquiries: 
Tel: 020 7887 4292 / 020 7887 4290
Out of hours tel: 07770 375283
Public enquiries:
Tel: 020 7887 4294