Radio Authority Publishes Assessment of Local Digital Multiplex Licence Award for Cambridge

110/03

22 October 2003

Radio Authority Publishes Assessment of Local Digital Multiplex Licence Award for Cambridge

The Radio Authority has today (22 October) published the details of its assessment of the local digital multiplex licence award for Cambridge. The Authority awarded the licence to Now Digital Ltd. on 2 October 2003.

A copy of the full assessment is attached.

ENDS

NOTES TO EDITORS

1. 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.

2. Towards 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.

Local Digital Radio Multiplex Service: Cambridge

Assessment of Licence Award

The local digital radio multiplex service licence for the city of Cambridge and the surrounding area was awarded to Now Digital Ltd. on Thursday 2 October 2003, to run for twelve years from the date the service commences broadcasting.

Applications were invited on 16 May 2003. By the closing date of 26 August 2003, one application was received, from Now Digital Ltd., a wholly-owned subsidiary of the GWR Group plc.

Consideration of the application

1. Coverage area and timetable

Now Digital proposes to commence its service no later than September 2004, subject to frequency clearance, using the transmission site at Madingley, which it estimates will provide noise-limited 'outdoor coverage' of 82% of the adult population of the 'primary protected area' (PPA). Members noted that there was some capacity to increase the power level at which the transmitter was operated whilst still remaining within the technical constraints of the coverage brief, which would improve overall coverage.

2. Ability to establish and maintain the service

Now Digital Ltd. is a wholly-owned subsidiary of GWR Group plc and has extensive experience as a digital multiplex operator. Members considered that Now Digital’s business plan for this multiplex was sustainable. Although not all the capacity of the multiplex has yet been allocated, the full-time commercial programme providers who have already agreed to provide services are owned by established digital sound programme providers, some of whom have shareholder involvement from the GWR Group which should enhance the security of income for the multiplex operation.

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

The commercial programme services which are confirmed for carriage from the launch of the multiplex are as follows:

Contemporary hit radio

Q103 (provider: Cambridge and Newmarket FM Radio Ltd.)

Modern rock

The Storm (provider: The Storm (Digital Radio) Ltd.)

Chart hits

Smash Hits (provider: Emap Performance Ltd.)

Dance

Vibe FM (provider: Eastern Counties Radio Ltd.)

'Access': various services including:

Student broadcasting

(19.00 - 00.00)

SBN (provider: SBN Ltd.)

Now Digital’s proposed programming bouquet includes a simulcast of the local FM station in Cambridge, Q103FM, which targets the under-40s with contemporary and chart music. The regional FM dance service, Vibe FM, will also be simulcast. Digital-only stations, The Storm, a modern rock service, and Smash Hits, a youth-orientated chart station, will also be provided. Local content will primarily be provided by the local and regional analogue stations, and by the 'Access' channel on which SBN hopes to provide local programming by broadcasting the output of local student radio stations. Members recognised the difficulties of attracting programme providers to digital multiplexes in areas with limited population coverage, and considered that a good start had been made with the provision of a variety of services. They noted that most of them were aimed at a youth market however, and expressed the hope that as digital penetration increased, services aimed at broadening choice for an older audience could be encouraged to seek carriage.

4. Broadening the range of local digital programme services

This is currently, and will for the foreseeable future remain, the only local multiplex available to listeners in the Cambridge area, with only a small degree of overlap with one of the neighbouring multiplexes. Therefore this statutory criterion is effectively satisfied by default.

5. Local support

A reasonable number of letters in support of the application were submitted by the time of the licence award, including endorsements by locally elected representatives. The group also commissioned an audience research survey to gauge the support of local listeners for particular formats; however, its ability to act upon the research findings was constrained by the limited availability of willing programme providers.

6. Fair and effective competition

The Authority has been given no reason to believe that the applicant did not act 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

Copies of the non-confidential section of the application was made available for public inspection in the reference sections of Cambridge Central Library and at the Authority’s offices in London. A notice was issued on 26 August 2003 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:

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

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

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;

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;

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;

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

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.

Contact:
Press enquiries:
Tel: 020 7887 4292
Public enquiries:
Tel: 020 7887 4290

Revised: October 22, 2003