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SLR - Ofcom Licensing

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An Application to <strong>Ofcom</strong> for the FM<br />

Independent Local Radio Licence for<br />

Shrewsbury and Oswestry<br />

November 2005


General Information<br />

Details of applicant<br />

(a) Name of Applicant, Address, Telephone and Fax Nos., E-mail address<br />

Name: Shrewsbury Local Radio Ltd<br />

Address: 2 Crowther Road<br />

Washington<br />

Tyne & Wear<br />

NE38 0BW<br />

Telephone: 01694 781689<br />

07850 100155 (Mobile)<br />

Fax: 01694 781692<br />

E-Mail: chairman@shrewsburylocalradio.com<br />

Company Registration number: 05223461<br />

(b) Main Contact (For Public Purposes)<br />

Name: Alan Clayton<br />

Telephone: 01694 781689<br />

07850 100155 (Mobile)<br />

Fax: 01694 781689<br />

E-Mail: alan@laserbroadcasting.com<br />

Address: Alcaston Barn<br />

Alcaston<br />

Church Stretton<br />

Shropshire<br />

SY6 6RP<br />

(c) Proposed Station Name (if decided)<br />

Shrewsbury Local Radio is a working name and not necessarily the one that will be<br />

used on the air<br />

(d) Brief Description of Programme Service<br />

A lively, full service local radio station for 35 to 64 year olds, focused on Shrewsbury,<br />

Oswestry and the surrounding areas, playing a wide range of popular hits from the<br />

last 40 years with local news, information and interviews forming an essential part of<br />

the output.<br />

(e) Main Contact (For <strong>Ofcom</strong> Purposes)<br />

This is to be found in Confidential Appendix 2.<br />

1


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

a) Board of directors<br />

(i) Provide the name, occupation, other directorships, other media interests, background and<br />

relevant media experience of each director (executive and non-executive), including the<br />

proposed chairperson.<br />

Shrewsbury Local Radio’s board is unrivalled in terms of its commercial acumen, local<br />

understanding and sheer wealth of experience in running locally-focused radio stations,<br />

much of it in the local market. The board is utterly confident that its vision to create, finance<br />

and sustain a successful and valued local business will become a reality. This confidence<br />

has grown over recent months in light of our research findings and the gathering of empirical<br />

evidence of healthy listener and advertiser demand for our proposed new station throughout<br />

Shrewsbury and Oswestry. This research, which is referred to throughout our application,<br />

has proved to be invaluable in helping us evolve our original plans into what we truly believe<br />

will become one of commercial radio’s big success stories in this latest phase of<br />

development.<br />

Central to our philosophy from the very outset was the need to assemble the strongest<br />

possible independent local board representing a pre-defined balance of skills including<br />

relevant radio experience and financial strength, allied to an intimate knowledge of the area<br />

and its psyche.<br />

We are delighted to have achieved that ambition and believe that the individuals described<br />

below symbolise our vision to deliver local radio for the people of Shrewsbury and Oswestry<br />

by the people of Shrewsbury and Oswestry. They are all totally committed to making the<br />

station part of the fabric of the community through the provision of outstanding local<br />

programme content.<br />

2


Section 105(A): Ability to maintain proposed service<br />

Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

1. Ownership and control of company, which will operate the licence<br />

a) Board of directors<br />

a) Board of directors<br />

Alan Mullett<br />

(Chairman)<br />

Occupation:<br />

Other<br />

Directorships:<br />

Other Media<br />

Interests:<br />

Brings to <strong>SLR</strong><br />

Board:<br />

Background<br />

and relevant<br />

media<br />

experience:<br />

Local Businessman<br />

Instep UK Limited, Realstreets Limited, The IMS Partnership Limited<br />

7.5% shareholder in internet company Realstreets Limited<br />

Local knowledge, over twenty years commercial radio experience and<br />

extensive leadership and management expertise.<br />

Alan started his career working for the Wolverhampton Express and<br />

Star before joining Beacon Radio in 1976 as a Sales Executive before<br />

becoming Sales Director six years later and then Managing Director in<br />

1987. During his time at Beacon’s helm he lobbied for and then<br />

successfully launched the station’s Shrewsbury service that remains<br />

the town’s only local commercial radio option.<br />

During his nine year tenure as Managing Director Alan increased<br />

annual turnover from £1.6 million to £3.9 million, dramatically improved<br />

profitability and consistently achieved market dominance for<br />

independent Beacon’s radio brands despite fierce competition from<br />

overlapping GCap and Chrysalis stations).<br />

Alan successfully re-applied for an extended licence covering<br />

Shrewsbury, was Chairman of Radio Advertising Awards in 1987 and<br />

1988, became a founding Director of the industry’s marketing<br />

organisation and personally designed sales training and administration<br />

systems which were accepted and used throughout the industry. A<br />

huge factor in Beacon’s success story was Alan’s commitment to local<br />

programme content and providing a professional service for local<br />

advertisers. Many other commercial stations subsequently adopted<br />

Alan’s blueprint for effective local advertising packages.<br />

After negotiating the sale of Beacon to GWR, Alan founded The IMS<br />

Partnership, a company that provided a strategic consultancy service,<br />

(including business planning and raising finance), to a variety of<br />

organisations. He also formed an association with Telstar Holdings<br />

Limited to apply for a number of regional radio licences in addition to<br />

independently applying for the local Wolverhampton licence.<br />

Following the completion of a number of projects in the exhibition, food<br />

and transport sectors, Alan moved on to his current role as Managing<br />

Director of Instep UK Limited. Operating for over twelve years, Instep<br />

is a company that specialises in management and organisational<br />

consultancy for both the private and public sectors.<br />

3


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

a) Board of directors<br />

Alan has 25 years experience of successfully managing and leading<br />

people. He has designed and delivered seminars and workshops on<br />

subjects ranging from ‘Communicating at a Distance’, through<br />

“Leadership Skills’, to ‘Winning Corporate Cultures’. Alan has worked<br />

for clients that include Cheltenham and Gloucester Building Society,<br />

Nicholls Foods Plc, Microsoft, Johnson & Johnson, British Telecom<br />

and Glaxo Smith Kline plus a number of SME’s.<br />

His approach is experience based and pragmatic dealing with the real<br />

issues, both commercial and personal, that leaders and managers face<br />

in the day-to-day operation of their businesses.<br />

Living locally, Alan is committed, post award, to playing an active<br />

role in the development and operation of the station. His<br />

experience of applying for and successfully operating the only<br />

commercials service dedicated to the area will greatly assist in<br />

creating a thriving station for listeners, advertisers and<br />

shareholders alike. He will devote a minimum of half a day a week<br />

to the radio station.<br />

4


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

a) Board of directors<br />

Stuart Linnell MBE, Hon MA<br />

(Non executive Director)<br />

Occupation:<br />

Other<br />

Directorships:<br />

Other Media<br />

Interests:<br />

Brings to <strong>SLR</strong><br />

Board:<br />

Background<br />

and relevant<br />

media<br />

experience:<br />

Company Director<br />

Warwick Local Radio Ltd<br />

Stuart represents Laser Broadcasting Ltd on the <strong>SLR</strong> board which has<br />

a 72.25% holding in <strong>SLR</strong>.<br />

35 years commercial radio experience with a strong programming bias.<br />

Stuart is one of the UK’s most experienced radio professionals with 35<br />

years involvement in the media, the majority of them in the midlands. He<br />

was a member of the launch team when BBC Radio Birmingham<br />

became the region’s first local radio station and since then he has<br />

worked in commercial radio in Sheffield, Coventry, Birmingham, Leicester<br />

and Derby.<br />

Stuart was sports editor at Radio Hallam in Sheffield at its launch in<br />

1974. In his 6 years at Hallam, he also became a regular contributor to<br />

Yorkshire Television’s Sunday afternoon football highlights programme.<br />

In 1980, the prospect of a senior role at Coventry’s new ILR station,<br />

Mercia Sound, was enough to lure Stuart back to his native West<br />

Midlands. During his 15 years at Mercia Sound Stuart became<br />

Programme Controller and later Managing Director, before the company<br />

was taken over by the GWR Group in 1994. A renowned champion for<br />

local causes Stuart founded Mercia’s ‘Snowball’ Charity which, over the<br />

last 20 years has raised in excess of £2-million for local chronically sick<br />

and handicapped children. Throughout the 1980’s Stuart also presented<br />

programmes for the local Coventry Cable Television service.<br />

When Mercia Sound merged with Birmingham’s BRMB to form Midlands<br />

Radio Stuart was appointed Operations Director for the new group. Soon<br />

afterwards, further expansion occurred bringing-in the Radio Trent Group<br />

from the East Midlands. In the two years following that merger, Stuart’s<br />

remit was further broadened when he became Programme Controller<br />

and Managing Director at Leicester Sound in addition to Mercia. During<br />

that time, both stations won programme format awards at the<br />

International Radio Festival of New York.<br />

The merged group of West and East Midlands stations were later<br />

acquired by Capital Radio and then, with the exception of BRMB, they<br />

were sold to the GWR Group. Some six months into that new ownership<br />

structure Stuart was appointed launch director for RAM FM in Derby,<br />

hitherto a relay service of Radio Trent in Nottingham, seeing the station<br />

through its pre-launch phase and into its first few months on-air.<br />

5


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

a) Board of directors<br />

In 1995, Stuart returned to front-line presenting with BBC radio and<br />

television in the Midlands. His radio programmes won 3 major awards,<br />

including the prestigious Sony Gold Award for Best Speech-Based<br />

Breakfast Show for his BBC WM programme in 1997. Having won the<br />

Silver Award in the same category the year before, Stuart became the<br />

first presenter to win Silver and Gold in the same category in successive<br />

years. He was also part of the BBC WM on-air team that won the Sony<br />

Gold as Regional Radio Station Of The Year In 1998.<br />

For BBC television Stuart was the presenter of three series of The<br />

Midlands at Westminster (BBC2) and weekend editions of Midlands<br />

Today (BBC1). On national radio he has been a presenter, producer and<br />

reporter for BBC Radio 5 Live.<br />

Stuart now combines his broadcasting with work as one of the UK’s<br />

leading conference moderators and facilitators. His consultancy, 1st<br />

Principles Media Services, provides a range of services, including media<br />

training and PR.<br />

He is also a freelance TV reporter for Sky Sports News, and for the past<br />

three seasons he has reported on Premiership football in England for the<br />

Irish national commercial radio station Today FM. This season (2005-<br />

2006), he is covering Premiership matches for the recently launched Irish<br />

service of Setanta Sports TV and he is the match-day corporate<br />

hospitality host for Coventry City Football Club.<br />

Stuart was made an MBE for services to broadcasting in the New Year<br />

Honours in December 1994. He was further recognised when Coventry<br />

University conferred on him an Honorary Master of Arts Degree in 1999,<br />

citing his work as a broadcaster and his wider contribution to the<br />

community in Coventry and Warwickshire.<br />

Stuart is working with Laser Broadcasting as Project Director with<br />

Shrewsbury Local Radio Ltd. Post award he will continue to be<br />

involved as part of Laser’s contract to spend a minimum of 30<br />

hours a month supplying support services to <strong>SLR</strong>. His role will be<br />

to oversee all aspects of the stations programming.<br />

6


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

a) Board of directors<br />

Nigel Reeve<br />

(Non executive Director)<br />

Occupation:<br />

Other<br />

Directorships:<br />

Other Media<br />

Interests:<br />

Brings to <strong>SLR</strong><br />

Board:<br />

Background<br />

and relevant<br />

media<br />

experience:<br />

Company Director<br />

Laser Broadcasting Limited, Banbury Local Radio Limited, Chorley<br />

Local Radio Limited, Exeter Local Radio Limited, Fresh Broadcasting<br />

Limited, Hereford Local Radio Limited, Harmony Radio Ltd,<br />

Humberside Local Radio Limited, Ipswich Local Radio Limited, Oxford<br />

Local Radio Limited, Swansea Local Radio, Warwick Local Radio<br />

Limited<br />

Chief Executive & shareholder in Laser Broadcasting Limited which<br />

has a 72.25 holding in <strong>SLR</strong><br />

35 years of media experience, including 30 years in radio advertising<br />

sales<br />

Nigel Reeve brings more than 35 years of media experience to the<br />

Board. He began his career with the local newspaper in Ipswich in<br />

1969, transferring to the fledgling Radio Orwell in 1975. After six years,<br />

Nigel joined 2CR in Bournemouth as Sales Manager. In 1983, he<br />

became Sales Director at Guildford’s County Sound, before oving to<br />

Invicta Sound in 1985. Later, as Managing Director of Invicta, he<br />

helped deliver a £1m profit and subsequent stock market flotation.<br />

Between 1989 and 1992 Nigel was Chairman of the Commercial Radio<br />

Advertising Awards, where he championed improvements in the<br />

standard of radio commercials.<br />

During this same period he headed up a radio sales training company<br />

that held monthly sales training courses for local sales staff in the UK<br />

radio industry. Between 1986 and 1988 Nigel trained over 66% of all<br />

local sales staff in UK radio.<br />

In 1991, Nigel joined the launch team of Classic FM, the UK’s first<br />

national commercial radio station, with responsibility for all sales and<br />

marketing at the station. During this period the station delivered<br />

revenue far beyond expectations largely due to the innovative policies<br />

introduced by Nigel. He was responsible for securing the largest ever<br />

radio campaign in the history of UK commercial radio – a three year<br />

sponsorship and airtime package sold to Cross and Blackwell valued<br />

at over £3 million. He also introduced a quarterly advertising creative<br />

award that paved the way for today’s Radio Aerials award.<br />

In 1995 Nigel also took responsibility for all sales and marketing at<br />

Classic FM’s radio stations in Holland, Sweden and Finland.<br />

7


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

a) Board of directors<br />

After a highly successful five years, Nigel was approached by London<br />

News Radio to become Chief Executive there in 1996, transforming a<br />

loss-making station into a profitable business by 1999. At the end of<br />

1999, Nigel established Fusion Radio Holdings, purchasing two radio<br />

stations in London and a third in Oxford. In September 2001, Nigel<br />

merged Fusion with Milestone Radio Limited, giving the new company<br />

controlling interests in additional stations in Newbury, Rugby and<br />

Basingstoke.<br />

Nigel formed Laser Broadcasting Limited in 2002, to bid for local FM<br />

radio station licenses and acquire minority holdings in existing<br />

commercial radio businesses, as part of the company’s long-term<br />

strategy to build interests in a group of locally focused radio stations.<br />

Nigel is an experienced media sales trainer, radio station manager and<br />

businessman.<br />

He brings this expertise, and over 30 years of radio-based knowledge,<br />

to the Board of Shrewsbury Local Radio.<br />

Post award Nigel will continue to be involved as part of Laser’s<br />

contract to spend a minimum of 30 hours a month supplying<br />

support services to <strong>SLR</strong>.<br />

8


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

a) Board of directors<br />

Alan Clayton<br />

(Non executive Director)<br />

Occupation:<br />

Other<br />

Directorships:<br />

Other Media<br />

Interests:<br />

Brings to <strong>SLR</strong><br />

Board:<br />

Background<br />

and relevant<br />

media<br />

experience:<br />

Company Director<br />

Alan Clayton Concerts Ltd.<br />

None<br />

40 years experience of the ‘hard nosed’ entertainment business.<br />

Alan has enjoyed over 40 years in the entertainment business. His<br />

career started in the early 60s managing a number of groups during<br />

British pop’s boom period. In the mid 60s he joined Astra International,<br />

an artiste management agency, later becoming a Director. Astra<br />

represented a range of top artistes including Jasper Carrott and Robert<br />

Plant. They also had a strong concert promotion division organising<br />

concerts for acts such as David Bowie, Elton John, The Who, Black<br />

Sabbath and David Essex.<br />

After leaving Astra, Alan worked freelance within the industry until the<br />

formation of Hermitage Productions at the end of the 80’s. Hermitage<br />

promoted concerts for many national and international artists including<br />

Van Morrison, The Everly Brothers, Hall & Oates, Bob Geldof, Michael<br />

McDonald, Elkie Brooks, Joe Longthorne, and Daniel O’Donnell.<br />

During this period Alan promoted Jim Davidson in concert and in 1993<br />

was responsible for his hugely successful 26 venue First Farewell<br />

Tour. Following this success Alan began to work more closely with Jim<br />

Davidson and when Jim was approached to take over The Wellington<br />

Theatre, Great Yarmouth in the summer of 1994 Alan joined him on<br />

the project. They began a major refurbishment programme and the<br />

theatre opened with a Gala Performance in April 1995. In 1996 Jim<br />

formed Effective Productions with Alan and Rick Price in order to<br />

combine various aspects of theatre production, including lighting and<br />

sound, under one roof.<br />

Whilst with Effective Productions, Alan was responsible for the<br />

promotion and production of seven of Jim Davidson’s UK concert<br />

tours, four Summer Seasons at Great Yarmouth and twelve major<br />

pantomimes at venues across the UK Within Effective, Alan was also<br />

involved in West End productions of The Lady Boys of Bangkok,<br />

Jolson, Great Balls of Fire and the touring musicals Summer Holiday<br />

and Oh What a Night.<br />

In 1999 Alan formed his own company, Alan Clayton Concerts Ltd. In<br />

2001 a number of concert tours were promoted including Fist of the<br />

Dragon – from China a presentation of Martial Arts, Dusty-The Concert<br />

starring Karen Noble and Flash Harry – Ireland’s top Queen Tribute<br />

show. In January 2003 Spirit of the Horse was promoted at the Dubai<br />

Shopping Festival.<br />

9


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

a) Board of directors<br />

This show starred 30 horses and 60 personnel from all over the world.<br />

A tour of The Lady Boys of Bangkok in 2003 culminated with sell out<br />

shows at Edinburgh Fringe Festival.<br />

In conjunction with Mark Howes and Robert Pratt, he has promoted<br />

two national tours of the highly successful This Lonely Heart – The<br />

Musical Biography of Roy Orbison starring Larry Branson. More<br />

recently Mark and Robert have also had great success with UK tours in<br />

2001, 2003 and 2004 of Ladysmith Black Mambazo who first came to<br />

internation notice when they featured on Paul Simon’s Graceland<br />

album and now play to sell-out audiences throughout the world.<br />

Throughout 2000 to 2003, Alan also formed a successful partnership<br />

with Russel Winston of Lollipop Productions to present the children’s<br />

shows Bananas In Pyjamas, The Adventures of Paddington Bear and<br />

a live version of ITV’s popular game show Family Fortunes.<br />

Between 2000 and 2005, a total of 814 shows were promoted by Alan<br />

and his team across the whole of the UK and Dubai.<br />

Alan has been an exceptional driving force behind <strong>SLR</strong> taking the<br />

prospective radio station’s ideas to all aspects of the local<br />

community. He has run over 30 presentation meetings this year<br />

alone finding out what people want from their new radio station.<br />

Alan will remain a Director post award and will continue to build<br />

the profile of the company amongst the local population.<br />

10


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

a) Board of directors<br />

David Bickle<br />

(Non executive Director)<br />

Occupation:<br />

Other<br />

Directorships:<br />

Other Media<br />

Interests:<br />

Brings to <strong>SLR</strong><br />

Board:<br />

Background<br />

and relevant<br />

media<br />

experience:<br />

Finance Director<br />

Laser Broadcasting Ltd, Angel Biotechnology plc<br />

David is a director of Laser Broadcasting Ltd which has a 72.25%<br />

holding in <strong>SLR</strong><br />

35 years experience in business ownership, entrepreneurship and<br />

finance<br />

David Bickle started his career with an accounting and business<br />

apprenticeship at Trimoco Plc. Following graduation in financial<br />

accounting standards Cima and Acca he became a financial<br />

troubleshooter with Marconi Plc. After this he set up a team of<br />

specialists to buy a rubber manufacturing company from Hanson Plc.<br />

He took the role of Financial Director and Company Secretary for 10<br />

years before becoming Chief Executive. After 4 years he was<br />

responsible for overseeing its successful sale to the trade competitor.<br />

David then took his MBA and set up a consultancy specializing in<br />

business turnarounds and startups. He has recently taken Angel<br />

Biotechnology to the AIM while also successfully refinancing and<br />

restructuring a number of SME businesses. He is currently working on<br />

two projects to bring technology companies out of a university<br />

environment as well as starting up his own businesses in venture<br />

mentoring.<br />

Post award David will oversee all financial aspects of the<br />

business as part of Laser’s service agreement.<br />

11


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

a) Board of directors<br />

Will Westley<br />

(Non executive Director)<br />

Occupation:<br />

Other<br />

Directorships:<br />

Other Media<br />

Interests:<br />

Background<br />

and relevant<br />

media<br />

experience:<br />

Company Director<br />

None<br />

Will is also a shareholder in Laser Broadcasting Ltd and has a 20.83%<br />

holding in <strong>SLR</strong>.<br />

Will has over 20 years board level leadership experience, specialising<br />

in new business ventures including an Internet Service Provider,<br />

Software Development House and Convergent Technology.<br />

For the last 15 years he has lived in Shropshire dividing his working<br />

time between Shrewsbury and London, as both investor and business<br />

executive.<br />

Will is currently delivering the UK’s first live DAB TV and radio<br />

broadcast (to mobile phones) for BT Livetime.<br />

He brings a high level of knowledge about the expected<br />

technological opportunities faced by the radio industry. These are<br />

advances that will improve the quality of local programmes and<br />

improve local station profitability. This knowledge will be<br />

essential to <strong>SLR</strong> over the life of the licence.<br />

(ii) If there are firm plans to appoint any further directors, provide information (with details of<br />

any specific individuals in mind). This information may be submitted in confidence.<br />

Post award we will be appointing a Station Director who will join the board.<br />

12


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

b) Proposed Investors and Shareholding Structure<br />

Full details of the proposed shareholding structure should be provided, including:<br />

(i) Names and addresses (the latter may be submitted in confidence) of all existing or proposed<br />

shareholders.<br />

A full list of shareholders appears below:<br />

Laser Broadcasting Ltd Crowther Road, Washington, Tyne & Wear, NE38 0BW<br />

Stuart Linnell 63 Craven Street, Coventry, CV5 8DS<br />

Alan Mullett<br />

The Butlers House, Patshull Park, Burnhill Green,<br />

Abrighton, WV6 7HY<br />

Will Westley<br />

Glen Cottage, Evenwood, Cound Moor, Shrewsbury, SY5<br />

6BE<br />

Alan Clayton Alcaston Barn, Alcaston, Church Stretton, SY6 6RP<br />

Sheila Allum 9 Manor Way, Belvedere Paddocks, Shrewsbury SY2<br />

Jeremy Taylor The Withies, 29 Underdale Road, Shrewsbury, SY2 5EG<br />

Stephen Bunting 108 Abbey Foregate, Shrewsbury SY2 6BA<br />

Roger Parry 2 Worrow Drive, Shrewsbury SY3 5DJ<br />

(ii) Total number, class/classes of shares and issue price of shares (specify voting, non-voting,<br />

preference, other etc.).<br />

200,000 shares will be issued at an average price of £2.80 per share. All shares are ‘A’<br />

Ordinary Shares<br />

(iii) All voting shareholders and holders of 5% or more of non-voting shares and loan stock<br />

should be named. State the number, class/classes and price of shares to be issued to each<br />

investor.<br />

Name Total Shares Price Payment Percentage<br />

Laser Broadcasting Ltd 144,500 £2.74 £396,275 72.25%<br />

Will Westley 41,667 £2.95 £122,917 20.83%<br />

Alan Clayton 1,250 £2.95 £3,688 0.62%<br />

Stuart Linnell 3,000 £2.95 £8,850 1.50%<br />

Alan Mullett 8,333 £2.95 £24,583 4.17%<br />

Sheila Allum 313 £2.95 £922 0.16%<br />

Jeremy Taylor 313 £2.95 £922 0.16%<br />

Stephen Bunting 313 £2.95 £922 0.16%<br />

Roger Parry 313 £2.95 £922 0.16%<br />

200,000 £2.80 £560,000 100.00%<br />

13


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

b) Proposed Investors and Shareholding Structure<br />

(iv) Outline any shareholders agreements or arrangements which exist.<br />

A shareholders agreement is in place containing standard terms. A copy can be supplied if<br />

required.<br />

(v) Where a corporate body other than a current <strong>Ofcom</strong> licensee will be providing 30% or more<br />

of the required funding, details should be given of its directors and main shareholders, and of<br />

its activities.<br />

Laser Broadcasting Limited is the only corporate shareholder with a holding of more than<br />

30%.<br />

Laser Broadcasting Limited was established in 2002 to bid for local FM radio station licences<br />

and acquire minority holdings in existing commercial radio businesses, as part of a long-term<br />

strategy to build interests in a group of locally focused radio stations. Shrewsbury Local<br />

Radio would be pleased to provide more information upon request.<br />

Laser Broadcasting’s main shareholders are: (Directors are marked with an asterisk):<br />

Full Name Holding<br />

Hugh Morgan Williams* 1.90%<br />

Nigel Reeve * 18.25%<br />

NEL Ltd * 36.56%<br />

Charles May * 13.42%<br />

Keith Rawlings 6.20%<br />

John Roberts 8.69%<br />

Tim Jones 4.58%<br />

Susan Hall * 0.50%<br />

Misc Shareholders 9.89%<br />

100.00%<br />

(vi) <strong>Ofcom</strong> may request additional information (e.g. a banker's letter, statutory/management<br />

accounts) regarding the shareholders, or any other providers of finance, listed in the<br />

application.<br />

Further information can be supplied if required.<br />

14


Section 105(A): Ability to maintain proposed service<br />

1. Ownership and control of company, which will operate the licence<br />

c) Involvement of the Applicant in Specified Activities<br />

Details are required of the involvement by the applicant and its participants (including shareholders<br />

or other subscribers of more than 5% of the applicant's total funding requirements) in any of the<br />

activities listed below, and the extent of the interest. For these purposes, the applicant includes<br />

associates of the applicant (i.e. directors and their associates and other group companies).<br />

(a) Advertising agencies;<br />

None<br />

(b) Newspapers;<br />

None<br />

(c) Other broadcasting interests;<br />

None<br />

(d) Bodies whose objects are wholly or mainly of a religious nature;<br />

None<br />

(e) Bodies whose objects are wholly or mainly of a political nature;<br />

None<br />

(f) Local authorities;<br />

None<br />

(g) Other publicly-funded bodies.<br />

None<br />

15


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

Provide a concise summary of how the applicant considers it is able to establish and maintain,<br />

throughout the licence period, its proposed service, and how this licence fits in with the investors’<br />

strategy.<br />

Overview<br />

Shrewsbury Local Radio’s board combines a solid understanding of – and passion for – this<br />

special part of England with its strong sense of community and unrivalled levels of highly<br />

relevant radio industry experience. This unique blend of skills and knowledge will ensure the<br />

creation of a successful radio station driven by the clear understanding of the importance of<br />

meeting the demands of local listeners and advertisers alike whilst demonstrably broadening<br />

choice in the market. <strong>SLR</strong> has applied substantial resources in order to clearly identify the<br />

type of programming content that will directly appeal to listeners in the Shrewsbury and<br />

Oswestry areas. Our all-embracing programme of consultation and detailed market research<br />

is summarised in Section 6 of this application.<br />

Despite the existence of an established heritage AM/FM ILR service for Shropshire, we are<br />

confident that Shrewsbury Local Radio’s unique ability to focus purely on the needs of the<br />

listeners and advertisers, who populate our two towns, will enable the station to establish a<br />

substantial audience and client base within a relatively short period of time. The local<br />

business community has already been educated on the potency of radio advertising by the<br />

existing stations, and our face to face research with local business leaders has, once again,<br />

confirmed that radio is now acknowledged as a cost-effective marketing tool. However, we<br />

also detected a perception that the audiences delivered by Beacon Radio and Classic Gold<br />

WABC are too narrow in demographic terms and scattered over a very large geographical<br />

area. The view that advertising in general and radio advertising in particular is becoming<br />

increasingly expensive was also expressed. However, Shrewsbury Local Radio’s broader<br />

target profile and tighter geographical fit allied to a more focused community-orientated<br />

offering were very well received. The research also suggested that <strong>SLR</strong>’s promise of<br />

competitive rates compared with existing stations and the local press, and a commitment to<br />

professional production standards and client service from the outset, will encourage<br />

advertisers to use the station. 52% of the businesses we spoke to said they would be “very<br />

likely” or “quite likely” to advertise their business or service on a new local radio station of the<br />

description given to them.<br />

Our unique new advertising proposition in a developed and educated marketplace makes us<br />

supremely confident about the station’s viability. We do recognise, however, the commercial<br />

realities of launching a new station in a market of less than 120,000 adults. The strong local<br />

press and the existing commercial radio operators have been around for a number of years.<br />

We expect them to use every method possible to retain their share of local business. This is<br />

a long-term project for <strong>SLR</strong>, though, and we are confident that the station will evolve and<br />

grow in standing and profitability with the passage of time. The <strong>SLR</strong> board has the necessary<br />

energy, drive and resource to nurture and support the company throughout the licence<br />

period.<br />

1. The <strong>SLR</strong> Licence Area<br />

The license area encompasses 20 postcode sectors centred on the two major towns of<br />

Shrewsbury and Oswestry comprising a population of 118,352 adults. Of these 68,500 live in<br />

the county town of Shrewsbury and 15,600 in Oswestry some 18 miles to the North West.<br />

Communications between the towns are excellent by virtue of the A5 which links the two.<br />

16


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

The broadcast area has the following characteristics:<br />

• 51% of the population is female;<br />

• Just over half of the adult population falls within the station’s 35 to 64 year old target<br />

age group;<br />

• Ethnic minorities comprise only 1% of the population;<br />

• 51% of the population is within socio-economic group ABC1, while 49% are within<br />

group C2DE;<br />

• 14% of employed adults are managers and senior officials, while 11% are<br />

professionals and 13% are associated professionals and technical staff;<br />

• 54% of the adult population are part- or full-time employees, 10% are self-employed,<br />

6% are students and 15% are retired;<br />

• 72% of households are owned either outright or with a mortgage.<br />

The proposed <strong>SLR</strong> footprint includes parts of two local authority areas – Shrewsbury &<br />

Atcham Borough, centred on Shrewsbury, and Oswestry district, both of which are within the<br />

county of Shropshire. 24% of the county’s population live in Shrewsbury, while 6% live in<br />

Oswestry. The population of Shrewsbury & Atcham Borough is projected to fall from 96,300<br />

in 2004 to 95,000 in 2021, while the population of Oswestry district is projected to rise from<br />

36,600 to 39,200 over the same time period. Both areas will experience an ageing<br />

population that will increase both the number and proportion of those aged 45+ within the<br />

area.<br />

2. A Gap in the Market<br />

Analysis of RAJAR ratings data (see Research Project 2, full details in Appendix 6) has<br />

highlighted changes in the local radio market that have convinced the <strong>SLR</strong> Board that a clear<br />

gap in the market exists for a truly locally-focused radio station serving Shrewsbury and<br />

Oswestry:<br />

• Total radio listening has fallen from 88% to 84% reach during the last five years;<br />

• Commercial radio’s share of listening has fallen from 51% to 49% during the last five<br />

years;<br />

• Local (not regional) commercial radio’s share of listening has fallen from 31% to 18%<br />

during the last five years;<br />

• Beacon FM’s share of listening has fallen from 12% to 9% during the last five years;<br />

• Classic Gold WABC’s share of listening has fallen from 4% to 1% over the last five<br />

years.<br />

Market research commissioned by the Board (see Research Projects 3 and 5, full details in<br />

Appendix 7 and 10 respectively) has demonstrated that demand exists amongst the local<br />

population for a source of news and information that is wholly focused on their own locality.<br />

The research confirmed that this demand is not currently being adequately satisfied by<br />

existing local commercial radio stations, which is why BBC Radio Shropshire currently<br />

achieves an 18% share of listening within its survey area (substantially more than Beacon<br />

FM and Classic Gold WABC combined within their survey areas).<br />

17


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

Analysis of the demographics of hours listened to Beacon FM and Classic Gold WABC<br />

demonstrated that the age group least catered for by existing local commercial radio stations<br />

is 45 to 54 year olds.<br />

INDEX 100 =normal distribution<br />

220<br />

0<br />

DISTRIBUTION OF HOURS LISTENED BY AGE [indexed<br />

by population] MARKET GAP<br />

Beacon FM<br />

Classic Gold<br />

WABC<br />

15-24 25-34 35-44 45-54 55-64 65+<br />

The station’s proposed target audience of 35 to 64 year olds was carefully selected by the<br />

<strong>SLR</strong> Board after reviewing all available data. This target group represents just over half of<br />

the adult population of the area and is sufficiently large to render a local commercial radio<br />

station economically viable. Although the graph shows that Classic Gold WABC’s audience<br />

is skewed towards 55 to 64 year olds, the overall impact of the station is negligible because<br />

its share of listening within its broadcast area has fallen to only 1%. Even within its key 55 to<br />

64 demographic, Classic Gold WABC only achieves a 2% share.<br />

Shrewsbury Local Radio believes that it has identified a viable gap in the radio market and,<br />

as a result, it has carefully produced an achievable business plan and a set of programme<br />

proposals that will satisfy the demand of local people for a new local radio station that caters<br />

for their distinctive tastes and interests.<br />

3. Skills & Experience to Maintain the Service<br />

The Board of Shrewsbury Local Radio Limited and the staff of major shareholder Laser<br />

Broadcasting Limited bring together an unrivalled range of radio management skills and long<br />

term commitment to the industry, both in the Shropshire market and elsewhere, to ensure<br />

that the station will maintain the highest standards during the entire twelve-year period of its<br />

licence.<br />

In addition to the directly relevant experience of its Directors [see answer to Question 1(a)],<br />

the Board is able to draw upon a wider range of skills and services. The Board has agreed to<br />

contract Laser Broadcasting Limited to supply Shrewsbury Local Radio Limited with a full<br />

accounts service, commercial traffic system, commercial production, sales training, IT<br />

support and a minimum of 36 hours per month of management time during the launch<br />

period, and then 30 hours per month thereafter. The contracted provision of these essential<br />

back-office services will ensure that Shrewsbury Local Radio can concentrate its efforts on<br />

delivering the local radio station that the people of Shrewsbury and Oswestry are<br />

demanding.<br />

18


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

The following key executives with substantial radio experience will ensure that Shrewsbury<br />

Local Radio Limited has the ability to successfully launch and maintain the service<br />

throughout the duration of the licence:<br />

Alan Mullet<br />

Managing Director of nearby Beacon<br />

Radio for 10 years. 20 years radio<br />

experience. Turned Beacon into a<br />

market leading station. Successfully<br />

launched Beacon (Shropshire), the only<br />

existing commercial service for the area.<br />

David Bickle (Non-Executive Director)<br />

Very experienced Financial Director<br />

specialising in new business start-ups<br />

and turnarounds.<br />

Grant Goddard (Laser Broadcasting)<br />

20 years radio programming,<br />

management and research experience in<br />

the UK, Europe and Asia.<br />

As with any business, the launch period is critical, which is why Shrewsbury Local Radio has<br />

assembled an experienced launch team to ensure that the station achieves the highest<br />

possible standards during the first twelve months after the award. Alan Mullett is the only<br />

person ever to manage the successful launch of a commercial radio service for the area.<br />

4. Board Structure<br />

Stuart Linnell (Laser Broadcasting and<br />

Non-Executive Director)<br />

35 years radio experience, including 20<br />

years senior radio management and<br />

programming experience. Former MD of<br />

Mercia Sound.<br />

Nigel Reeve (Laser Broadcasting)<br />

30 years radio sales and management<br />

experience.<br />

David Mortimer (Laser Broadcasting)<br />

10 years radio management and<br />

programming experience.<br />

The Board of Shrewsbury Local Radio Limited has been structured to ensure that the<br />

company benefits from an appropriate balance of radio experience and business experience.<br />

The Directors represent 99.36% of the share issue of Shrewsbury Local Radio Limited. The<br />

decision was taken to structure the Board with only six Directors to ensure that the decision<br />

making process is kept simple and easy to manage, allowing Shrewsbury Local Radio to<br />

react quickly to any changes in the market.<br />

It is the Board’s policy to aim to pay the first dividend after five years of trading, which will<br />

further ensure that long-term retention of shareholdings remains attractive to the investors.<br />

The stability of this corporate structure enables the Board to plan and develop the company<br />

over the twelve-year period of the licence.<br />

19


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

5. Necessary Funding<br />

The shareholders and board members of Shrewsbury Local Radio have gone far beyond<br />

simply offering their skills and experience to develop the business plan for the proposed<br />

radio station. They have spent time and money investing in a trial broadcast, awareness<br />

building, research and consultations [see answers to Questions 6 and 7]. Over the last 18<br />

months, they have invested over £90,000 in the project. Post-award, existing shareholders<br />

have committed a further £470,000 in order to launch the station and maintain it for the full<br />

period of the licence.<br />

Based on the projections detailed in the profit and loss account, these sums will be sufficient<br />

to avoid requiring an overdraft facility, even when a sensitivity test is applied that reduces<br />

projected revenues by 20%. However, the company’s banker, Lloyds TSB, has indicated that<br />

an overdraft facility could be arranged, if required post-award. A copy of this letter can be<br />

supplied on request.<br />

As an emerging radio group, Laser Broadcasting Limited’s substantial shareholding provides<br />

the company with the financial support and long-term commitment requisite for a radio<br />

station launch in a relatively small local market. In addition, Laser has agreed to underwrite<br />

any required funding, if shares in Shrewsbury Local Radio were to be made available and<br />

provide further funding support when and if it is required. Laser Broadcasting is backed by<br />

financial institution Northern Enterprise Ltd. who are supporting Laser’s plans for this and a<br />

number of other applications across the UK.<br />

As per the shareholders’ agreement, any shares in Shrewsbury Local Radio that become<br />

available must be offered to the existing shareholders in the first instance.<br />

There exists a clear commitment from the shareholders, including Laser, to the long term<br />

financing of the company.<br />

6. Accounting Policies<br />

The Board of Shrewsbury Local Radio Limited has produced an achievable business plan<br />

that is based on the following assumptions:<br />

• Conservative audience forecasts, with a projected weekly reach in Year One of 17%,<br />

rising by Year Three to 19%, based upon empirical evidence of recent local station<br />

start-ups of comparable size [see answer to Question 2(d)];<br />

• Conservative revenue projections based upon a static Total Survey Area of 118,352<br />

adults, rather than including allowances for the area’s projected population growth;<br />

• The historical benchmark industry average revenue of £31 per 1000 hours per annum<br />

listened was used to produce the financial forecasts, with a year-on-year growth<br />

progression applied using the average values of Advertising Association projections for<br />

UK radio revenues (see table below);<br />

RADIO REVENUE: Year-On-Year Growth Projections (%)<br />

High option Low option Average<br />

2005 3.0 7.7 5.4<br />

2006 2.7 2.0 2.4<br />

2007 9.3 2.2 5.8<br />

2008 9.2 4.7 7.0<br />

Source: Advertising Association forecasts, November 2004<br />

20


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

• Realistic expenditure projections for the station launch that include £9,000 of nonsponsored<br />

local promotions and advertising in Year One and £15,000 for marketing in<br />

the pre-launch period;<br />

• A projected operating profit in Year Three;<br />

• Projections that require no overdraft, even if revenue shows a shortfall of 20%;<br />

• The first dividend to be paid to shareholders after five years.<br />

These are the policies on which the Shrewsbury Local Radio Limited business plan is based.<br />

It is the Board’s stated intention to deliver a profit in Year Three, not to have to resort to any<br />

form of working capital borrowings, and to pay a dividend to shareholders after five years.<br />

The financial planning involved in Shrewsbury Local Radio’s business plan has been<br />

rigorous, detailed and is based on reasonable assumptions.<br />

7. Investor Strategy<br />

The strategy of the company’s investors has been discussed and agreed upon by both the<br />

Board and shareholders. The main points of Shrewsbury Local Radio Limited’s investor<br />

strategy to date are:<br />

• The focus of the enterprise is to build a successful local radio station in Shropshire for<br />

the residents and business community of Shrewsbury and Oswestry;<br />

• The company will remain focused on long-term growth and the integrity of its product;<br />

• Shareholder Laser Broadcasting Limited has a long-term commitment to developing<br />

interests in an emerging group of genuinely local radio stations;<br />

• Investors are involved for the potential long-term returns rather than immediate shortterm<br />

gains;<br />

• The company should remain fully funded with no working capital borrowing<br />

requirement;<br />

• A shareholder agreement requires that any shares for sale are offered, in the first<br />

instance, to existing shareholders in proportion to their existing holdings;<br />

• Dividends will be returned to shareholders after Year Five;<br />

• Shareholders are committed to the establishment, funding and maintenance of the<br />

business for the full duration of the permanent licence;<br />

• Simulcast opportunities via internet and cable streaming are acknowledged as<br />

important ways of extending the station’s potential audience;<br />

• Opportunities to increase the radio station’s penetration through DAB (Digital Audio<br />

Broadcasting) in the Shropshire area will be pursued when multiplexes become<br />

available;<br />

• An ongoing programme of market research will ensure that the station remains<br />

relevant and focused on the listeners and advertising community in Shrewsbury and<br />

Oswestry at whom it is aimed.<br />

21


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

b) Funding<br />

Detail the sources of finance that will be used to fund the licence, under the following headings:<br />

(i) Share capital<br />

Post-award, 200,000 shares will have been issued in the company, raising a total of<br />

£560,025.<br />

(ii) Loan stock<br />

Shrewsbury Local Radio has no plans to issue loan stock.<br />

(iii) Leasing/HP facilities (capital value)<br />

Three company vehicles with a capital value of £30,000 will be leased.<br />

(iv) Bank overdraft<br />

Shrewsbury Local Radio Limited’s business plan does not anticipate the need for an<br />

overdraft. However, the company’s banker, Lloyds TSB, has indicated that such a facility<br />

would be made available.<br />

(v) Grants and donations<br />

None<br />

(vi) Other (please specify)<br />

None<br />

Where relevant, provide information on:<br />

(i) Loan terms (e.g. interest rate, repayment terms, redemption/conversion terms)<br />

Not applicable<br />

(ii) Assets leased<br />

Shrewsbury Local Radio Limited will lease three company vehicles over a three-year period.<br />

A written quote for these is available upon request.<br />

All of the funding above should be confirmed to the applicant. Explanation should be<br />

provided if this is not the case.<br />

22


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

c) Financial Projections<br />

This question is to allow the applicant to demonstrate its understanding of the market.<br />

The forecasts should be based on reasonable assumptions that are logically applied and justifiable.<br />

Understanding the Market - Population & Economy<br />

Once the third most important town in England, the trade and merchant centre for the entire<br />

region, a prominent gateway to the Welsh Marches and the financial and administration<br />

capital of a wealthy agricultural area, Shrewsbury has bounced back from the degeneration<br />

and decline of the past few decades and is now demonstrably meeting the rigorous demands<br />

of the 21 st century economy. The demise of the local manufacturing base, declines in<br />

traditional industries and dramatic shifts in the agricultural economy upon which the county<br />

town was built created years of recession and stagnation, but Shrewsbury is now succeeding<br />

in building a modern and dynamic economy and reshaping its local industries in the face of<br />

economic and social changes and little eligibility for high levels of grant aid. <strong>SLR</strong> will become<br />

a vital and valued player in local business and will act as a catalyst for further growth.<br />

45% of Shropshire’s employee jobs are located in the town of Shrewsbury, where there are<br />

some 48,000 people working in approximately 3,800 businesses. Health and social work is<br />

the town’s largest employer, accounting for 26% of the workforce, followed by wholesale and<br />

retail trades that employ 20%. Nearly a third (31%) of the workforce is employed in large<br />

businesses of more than 200 employees.<br />

The town’s economic renaissance is being driven by its strong sense of individuality, an<br />

entrepreneurial community stretching from the award winning Local Authority to the growth<br />

of successful SME’s. Shrewsbury has the fastest rate of increase in self employment in<br />

Shropshire, 20 per cent more small businesses now than three years ago, and the highest<br />

regional growth in start-up technology businesses. One in five (19%) of the workforce is<br />

employed in small businesses of between 1 and 10 employees, which account for 82% of<br />

the town’s businesses. Here, too, <strong>SLR</strong> will fulfil an important role through offering affordable,<br />

targeted advertising opportunities to this expanding raft of smaller organisations.<br />

Shrewsbury has come of age in terms of its business landscape and has shown a real sense<br />

of ambition in recent times. For example, in October the town was awarded runner-up status<br />

in the national finals of The Enterprising Britain 2005 competition, recognising and rewarding<br />

the town’s success in creating an enterprise culture that improved social and environmental<br />

conditions as well as making a big difference to the local economy. Earlier in the year<br />

Shrewsbury beat off stiff regional competition from Coventry, Birmingham and<br />

Wolverhampton and can boast a higher number of business owners per head of population<br />

than any of the other contending locations.<br />

The number of employee jobs in Shrewsbury increased by 12% between 1998 and 2003, a<br />

significant change compared to the Shropshire average of 5% and the West Midlands<br />

average of just 2%. During this time, the number of jobs in manufacturing fell by 35%, in<br />

transport and communication by 24% and in financial serves by 22%, while jobs in health<br />

and social work have increased by 63%, in education by 44% and in mining, energy and<br />

water by 32%. The average gross weekly pay in the Shrewsbury & Atcham borough is £447,<br />

compared to an average £485 in England.<br />

The “West Midlands Towns Intervention Study” identifies Shrewsbury as a “town economy<br />

dominated by the service sector [that] plays a key role as a sub-regional shopping centre<br />

and tourist destination.” It earmarks Shrewsbury as “a sustainable location for housing and<br />

employment growth outside the region’s conurbations; and a longer term contingency<br />

location for higher level of housing growth if conurbations are unable to accommodate<br />

planned levels of house building post-2011.” The report identifies the following companies as<br />

23


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

c) Financial Projections<br />

likely to expand operations in Shrewsbury: Co-op Supermarket, Tesco (if planning enquiry is<br />

successful) and Shropshire County Council Social Services Directorate (following<br />

restructuring).<br />

Towards the North West of the broadcast area, Oswestry comprises 6% of the county’s<br />

employee jobs, employing 6,000 people in approximately 700 businesses. The biggest<br />

employer is the wholesale and retail trade, accounting for 30% of employee jobs, followed by<br />

health and social work (13%) and education (13%). 81% of local businesses comprise ten or<br />

fewer employees, who employ 27% of the workforce.<br />

In Oswestry, the number of employee jobs fell by 5% between 1998 and 2003, the opposite<br />

of the trend in Shrewsbury and the rest of the county. Over that time period, 40% of jobs in<br />

manufacturing were lost, along with 32% in construction. Jobs in education increased by<br />

32% and in hotels and restaurants by 5%. The average gross weekly pay in Oswestry<br />

borough is £440.<br />

Oswestry is a market town serving a wide rural area, and industries such as food packing,<br />

clothing, cold storage, road haulage and metal fabrication are numerous. A number of<br />

regeneration projects have been approved by the district council, including Medi Parc that<br />

will build on the orthopaedic hospital as a national centre of excellence, new facilities and<br />

improved attractions for visitors, and a market town initiative. (See Research Project 7 in<br />

Appendix 12 for data sources).<br />

In November 2005 one of the town’s biggest employers, the successful IT company TNS,<br />

was the target in a takeover swoop by British Telecom. This very recent development bodes<br />

well for local employment as BT has announced their intention to expand the business which<br />

already employs 92 and has assets of £9.1 million. TNS also owns a football club in nearby<br />

Llansantffraid, Powys but has plans to move it across the border into a new 3,000-seater<br />

stadium in the centre of Oswestry.<br />

The Local Newspaper Market<br />

All but one of the daily and weekly newspapers available in Shrewsbury and Oswestry is<br />

owned by the giant Midlands News Association, (MNA), group which mushroomed out of the<br />

Wolverhampton-based Express and Star. The common ownership of the areas main press<br />

titles means local businesses are restricted in their choice of newspaper advertising.<br />

Despite Shrewsbury’s standing as the county town, Shropshire’s daily newspaper is based<br />

15 miles away in Telford. Launched in October 1964 the Shropshire Star is distributed<br />

throughout the county and is available well into Mid Wales. Essentially the ‘launch’ was a rebranding<br />

exercise for what had previously been the Shropshire edition of Wolverhampton’s<br />

Express and Star. Since then the newspaper has flourished, proving beyond doubt that<br />

Shropshire has a strong thirst for dedicated local news and information. Inheriting a nightly<br />

circulation of around 19,000 from the former title, the new paper saw amazing circulation<br />

growth. By the mid-1980s sales were around the 100,000 mark, and the paper had<br />

expanded from an initial two editions, to eight. Nowadays it sells in the region of 79,000<br />

copies a day with an impressive average issue readership of 219,000, (52% of adults), one<br />

of the highest penetration rates in British regional press, with over 82 per cent of all copies<br />

published being home delivered. The current published rate for a mono quarter page ROP<br />

advertisement is £688. The paper’s website claims to attract one million page views a month.<br />

Our own research confirmed the popularity of the Shropshire Star as a valued source of local<br />

information. These latest Jicreg figures are broadly in line with our own findings, (full details<br />

in Research project 5 at Appendix 10), in which 57% of 35-64 year olds named paid-for local<br />

newspapers as their main source for local news.<br />

24


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

c) Financial Projections<br />

The Shrewsbury Chronicle is one of the oldest weekly papers in the country and was first<br />

published in 1772. Over the centuries the paper has had many different owners and offices<br />

around the town, but it is now based at Chronicle House, Castle Foregate, opposite<br />

Shrewsbury railway station. It is printed on Wednesday evening and is on sale for Thursday<br />

breakfast.<br />

The Chronicle claims to be a ‘community’ newspaper aiming to “chronicle everything that has<br />

happened in Shrewsbury and the surrounding area during the previous seven days”.<br />

However, it is clear to any reader that the paper’s true raison d’être is to sell property. The<br />

paper averages 96 pages each week half of which form a property supplement. According to<br />

Jicreg data the Shrewsbury/North Shropshire Chronicle has a circulation of 18,349 with an<br />

average issue readership of 54,000, (51% of the population). The current ratecard cost of a<br />

mono quarter page ROP advertisement is £348.<br />

The Oswestry and Border Counties Advertiser is one of a number of weekly titles owned by<br />

North Wales Newspapers group. Established over 150 years ago it is the second oldest<br />

newspaper in the county. With a published readership of 32,500 our own focus group<br />

research and anecdotal evidence showed this to be a valued publication and the solitary<br />

source of hard news outside the giant MNA stable. (Full details of Focus Group studies can<br />

be inspected in Research Report 3 in Appendix 7).<br />

Shrewsbury ‘Admag’ is a weekly free paper published by Northcliffe group that is almost<br />

entirely comprised of advertisements. According to VFD the title reaches 35,000 households<br />

in and around Shrewsbury and 7,000 homes in Oswestry.<br />

The Powys County Times and Express covers a large geographic area fringing on the<br />

proposed <strong>SLR</strong> transmission area. Readership and commercial support, however, is almost<br />

entirely confined to the Welsh side of the border.<br />

A Detailed map of the specified press circulation areas landscape can be found in<br />

Confidential Appendix 16.<br />

The Local Radio Market<br />

The two existing commercial stations broadcasting to Shrewsbury and Oswestry are Beacon<br />

Radio and Classic Gold WABC. In Oswestry MFM 103.4 and Classic Gold Marcher, (from<br />

Wrexham), also appear on Rajar diaries, although the town lies outside the stations’ official<br />

MCA. All these stations are now a part of Britain’s largest radio group Gcap Media. BBC<br />

Radio Shropshire also broadcasts across the county.<br />

A Detailed map of the specified radio landscape can be found in Confidential Appendix 16.<br />

Originally focused on Wolverhampton and The Black Country, Beacon Radio launched in<br />

April 1976, the last of the Independent Broadcasting Authority’s first raft of ILR stations.<br />

Beacon was considered an ‘experiment’ by the IBA which was keen to observe what would<br />

happen if two commercial stations were allowed to operate in close proximity to one another.<br />

One third of Beacon’s area overlapped with Birmingham-based BRMB, an area which<br />

includes the towns of Dudley and Halesowen. Beacon’s original board recognised the need<br />

to formulate an alternative musical offering and looked to North America’s more developed<br />

radio industry when recruiting senior management for the station’s launch. Under the first<br />

Managing Director, an American, the early Beacon sound was very distinctive, and<br />

noticeably different from that of BRMB.<br />

25


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

c) Financial Projections<br />

Like other early ILR stations BRMB was primarily top 40 based while Beacon injected ‘spice’<br />

to its music in the form of classic oldies and album tracks. Throughout the late ‘70’s and into<br />

the ‘80’s Beacon remained strongly focused editorially on Wolverhampton and the Black<br />

Country with an unusually diverse mix of music. The station unquestionably won the hearts<br />

and minds of local people scoring excellent ratings from the outset with a share of 42% in<br />

1979. (Source, Jicrar). After the departure of Beacon’s somewhat ‘unorthodox’ launch<br />

management team, the station’s programming began to conform more with the ILR norm<br />

under Managing Director Peter Tomlinson, (a former ATV presenter), and his Programme<br />

Controller, ex-BFBS broadcaster, Bob Pierson who was later promoted to MD.<br />

Another management change came in 1987 when former Sales Director, Alan Mullett<br />

stepped-up to MD with presenter Pete Wagstaff as Programme Director.<br />

The new team were keen to make a difference and successfully applied for a new franchise<br />

to broadcast across Shropshire from a powerful FM transmitter high above the county on top<br />

of the Wrekin. So, on July 14 1987 commercial radio finally came to Shrewsbury and<br />

Oswestry. ‘Beacon Shropshire’ launched as an opt-out of the West Midlands service with<br />

dedicated programming for eight hours a day at breakfast and drivetime, as well as separate<br />

commercials, traffic updates and news bulletins at other times. The station also invested in a<br />

studio and sales office located in Shrewsbury’s Music Hall and was frequently seen staging<br />

outside broadcasts from all over the county. Beacon recruited strongly local presenters for its<br />

dedicated Shropshire programmes. Individuals like Graham Hall and Will Tudor, who<br />

remains one of the county’s best known personalities to this day. Station policy was to use<br />

local relevance in abundance to enhance appeal and the Shropshire service fast became an<br />

important contributor of listener hours and new revenue to the Beacon Radio ‘family’. At this<br />

time there was a terrific team spirit at Beacon which drove a hunger for further success.<br />

Audiences and revenue were at record levels and the station achieved breakthroughs in<br />

other areas like, for example, the ‘syndication’ of its overnight show to neighbouring ILR<br />

stations, Signal, Mercia and Wyvern.<br />

In 1988 the government announced its intention to end the practice of ‘simulcasting’ and<br />

Beacon’s management team devised a new format for their only AM frequency, 990khz.<br />

‘Radio WABC’ started broadcasting on January 15 1989. Once again, Beacon did things<br />

slightly differently. Because of the, by now, well established ‘Gold’ format from Birmingham’s<br />

Xtra AM, WABC became Britain’s first easy-listening station with Frank Sinatra's ‘Nice and<br />

Easy’ as the first song played.<br />

Keen to expand further, Alan Mullett successfully applied for what was to be the last IBA<br />

licence, and on December 12 th 1990 WABC was rolled out across Shropshire, mirroring the<br />

local programming template of Beacon FM. Radio WABC's music policy shifted several times<br />

over the next few years becoming more upbeat and contemporary towards the middle of the<br />

decade. In 1993 Beacon’s shareholders sold out to Swindon-based GWR group, although a<br />

condition of the sale meant that GWR could not take day to day control of the stations for<br />

three years. During this time Beacon Radio and WABC continued to be programmed and<br />

presented locally with no external influence to the music or on air line up. The Shropshire<br />

stations continued to deliver strong local content with regular involvement of local people via<br />

‘phone-ins and outside broadcasts.<br />

26


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

c) Financial Projections<br />

However, in July 1996 GWR took day to day control and over the next few months , after the<br />

departure of the incumbent management team, Beacon FM was transformed by GWR into a<br />

‘clone’ of the group’s other FM brands up and down the country. Then, on April 1st 1998<br />

WABC finally became part of the Classic Gold network with local programming reduced to<br />

just four hours a day.<br />

Beacon Radio is now part of the recently created ‘The One Network’ which Gcap describes<br />

as “a network of 39 local stations, each giving listeners vibrant, engaging, quality output,<br />

featuring high profile presenters, celebrity guests, local importance and the best<br />

contemporary music.” GCap promises that “each station in The One Network is at the heart<br />

of its community, broadcasting to listeners who are young, ‘up for it’ and very much in touch<br />

with what’s happening in their local environment.”<br />

Assimilating radio stations in the GWR group has worked well in some areas but in terms of<br />

audience, it has clearly failed at Beacon.<br />

27


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

c) Financial Projections<br />

Present audience levels are the lowest in Beacon Radio / Classic Gold WABC history as the<br />

above chart shows. Some of this erosion will be an effect of the new regional commercial<br />

stations which have been launched in the West Midlands. Heart FM in particular has<br />

established a strong following since its launch in 1994. The other regional stations, Saga and<br />

Kerrang!, have more focused remits so are less likely to have contributed to Beacon’s<br />

decline.<br />

It is impossible to directly link the cause and effect of programming changes and falling<br />

ratings, but a view shared by many industry observers is that the decline of both Beacon<br />

Radio and Classic Gold WABC is a result of less locally-orientated programme content and<br />

more networked programming on both stations. Once it had full control, GWR closed<br />

Beacon’s Shrewsbury studio facility and all the outside broadcast activity across the county<br />

which had, hitherto, kept the station front of mind, did not comply with GWR’s programming<br />

philosophy and, as such, was immediately scrapped. News bulletins were trimmed-back,<br />

presenters received a strict group mandate to keep links concise and these became largely<br />

promotionally orientated.<br />

There has been a palpable withdrawal from Shropshire both on the air and in terms of<br />

visibility and sales activity. At one time it was hard to drive from Shrewsbury to Oswestry<br />

without spotting one of the brightly logoed Beacon sales cars. Now though, with Gcap’s<br />

move towards seminar sales, station executives are rarely seen. According to <strong>SLR</strong>’s face to<br />

face research with members of the local business community this decline in activity is<br />

perceived as ‘poor service’ and is something we intend to address immediately. (Full details<br />

of our Business Research can be found in Research Project 6 in Appendix 11).<br />

A further testament to Gcap’s apparent lack of emphasis on Shropshire is it’s decision not to<br />

broadcast Shropshire output on the Shrewsbury / Telford DAB multiplex, instead relaying the<br />

West Midlands feeds of Beacon and Classic Gold WABC.<br />

We have listened to Beacon and Classic Gold WABC with a professional ear over many<br />

years and are more familiar than most with their present formulae. To re-confirm our<br />

perceptions we commissioned independent monitoring of both stations over a full 12-hour<br />

period from 6.00 am-6.00 pm on 14th September 2005 by specialist research company<br />

‘Matters of Fact’. (The full reports for each station can be found in Appendixes 8 and 9<br />

respectively).<br />

Beacon Radio is typical of the ‘Mix’ brand and carries all the major pan-network promotions.<br />

The big competition running throughout daytime programming when we monitored was ‘The<br />

Tenth Question’, an hourly phone-in quiz with cash prizes of up to £1,000. What the casual<br />

listener might fail to spot is that the exact same hourly caller appears on every station across<br />

the entire ‘Mix’ network, so this is hardly a genuine opportunity for listeners in Shrewsbury<br />

and Oswestry to participate and win on any regular basis. Generally presenter links were<br />

kept short and apart from general dedications there was very little content specific to<br />

Shrewsbury and Oswestry.<br />

28


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

c) Financial Projections<br />

All but four hours of daily output on Classic Gold WABC is now networked across all UBC’s<br />

Classic Gold frequencies so apart from the locally inserted news and commercial elements<br />

the station has a ‘national’ feel.<br />

On the day we monitored, there were a number of Shropshire-specific stories featured in the<br />

news bulletins on Beacon Radio / Classic Gold WABC making up around 64% of news<br />

content which, we would suggest, is well above average observed ratio. The day’s main local<br />

story concerned the attack in her home of an 84 year old woman, the threat of petrol<br />

shortages, the merger of midlands’ ambulance services and the death of a patient at a<br />

Shrewsbury mental home. However, apart from an extended 5 minute bulletin at 7am, the<br />

longest news update monitored was 2 minutes in duration. We believe that the people of<br />

Shrewsbury and Oswestry want and deserve more detail, a theory borne out by our<br />

qualitative research which showed that Shropshire residents are loyal to their area and take<br />

a healthy interest in local issues.<br />

It is our contention that this lack of local content from the existing local commercial stations’<br />

opens up the gap in the market for a new station to fill. There is no doubt that Shrewsbury<br />

and Oswestry can generate sufficient news stories to build a new, highly locally focused<br />

radio station. Analysis of a random issue of the Shropshire Star (2 nd November 2005)<br />

showed that 77% of the news stories carried were local. There is every reason to believe<br />

that a locally focused radio station covering a substantial number of local news stories could<br />

be every bit as successful as the Shropshire Star, which enjoys 52% penetration in the<br />

county (Jicreg 2005).<br />

Over the 12-hour period 219 adverts were played on Beacon Radio. Of these 87 were for<br />

local or regional businesses and 132 were national adverts with no specific local reference.<br />

This represents a 60.3% / 39.7% split between national and local advertising. Many of the<br />

‘local’ advertisements, however, were for businesses based in Beacon’s West Midlands<br />

area. Our face to face research with local businesses suggests that there is strong<br />

commercial demand for our proposition.<br />

Pricing and poor service were issues highlighted together with the narrow playlists of existing<br />

stations. We know we can win on all these fronts:<br />

• Our rates will be set at realistic levels for the local market;<br />

• From our base in Shrewsbury we will be able to service our clients frequently and<br />

professionally;<br />

• Our programming will be relevant, entertaining and more musically diverse than any of<br />

the existing stations.<br />

In putting together its business plan for Shrewsbury Local Radio, the Board has been<br />

determined to utilise as much empirical evidence as possible about the local market, existing<br />

media within it, and the dynamics of the population and the economy of both Shrewsbury<br />

and Oswestry. In this, we have been fortunate in benefiting from the wealth of local<br />

knowledge and experience provided by its Directors, one of whom personally initiated the<br />

campaign that originally brought commercial radio to Shropshire and went on to lead Beacon<br />

through its most successful period. It is through those shared experiences that the Board<br />

identified the gap that exists in the market for listeners who want a truly locally-focused<br />

station, and the gap that exists for potential local advertisers who presently have the choice<br />

of only MNA and GCap Media in the two most important local media – print and radio.<br />

The Board of Shrewsbury Local Radio is committed to offering both listeners and advertisers<br />

a genuine alternative to existing local media.<br />

29


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

c) Financial Projections<br />

The applicant should provide financial projections on an annual basis for the licence. The<br />

projections must include:<br />

(i) Profit and loss accounts<br />

(ii) Balance sheets<br />

(iii) Cash-flow forecasts<br />

The period covered is at the discretion of the applicant, but should be justified. The forecasts<br />

should be supplied on an Excel spreadsheet or similar, with any accompanying guidance notes.<br />

The applicant must also complete and submit the spreadsheet entitled ‘Financial Template’<br />

located at www.ofcom.org.uk/radio/ifi/rl/commer/ar/lapr/ftap.xls using information from its<br />

business model.<br />

All financial projections, plus the “Financial Template”, are included as Appendix 4. In<br />

addition to profit and loss accounts, balance sheets and cash flow forecasts for the first five<br />

years, also included are full details of all workings, the sensitivity analysis, depreciation, staff<br />

costs, revenue calculations and pre-operational expenditure.<br />

The projections are based on the first five years of trading. Shrewsbury Local Radio Limited<br />

has decided to submit projections for the first five years, as this moves the company closer<br />

to the repayment of initial setup costs and its dividend payment policy.<br />

30


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

d) Audience Projections<br />

Provide the following information:<br />

(i) The projected adult (aged 15+) population of the Total Survey Area (TSA) within which it is<br />

intended to measure the listenership of the service.<br />

The projected adult population (aged 15+) is 118,352. This has been derived from 2001<br />

Census data and the coverage prediction supplied by Arqiva (see answer to Question 3).<br />

This is the population count against signal strength of 54 dBuV/m from the twin transmission<br />

configuration.<br />

(ii) Projections for listenership ratings (e.g. weekly reach, average weekly hours of listening)<br />

over the first three years of the service, with detailed demographic breakdowns as<br />

appropriate.<br />

The Board’s analysis has determined that the station’s projected performance will be:<br />

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5<br />

Adult (15+) TSA 118,352 118,352 118,352 118,352 118,352<br />

Weekly reach % 17% 18% 19% 20% 21%<br />

Reach 20,120 21,303 22,487 23,670 24,854<br />

Average hours 7 hours 8 hours 9 hours 9 hours 9 hours<br />

Total hours 140,839 170,427 202,382 213,034 223,685<br />

Extensive market research (see answers to Question 6) has demonstrated the wide appeal<br />

of the proposed radio station to a substantial proportion of the potential audience between<br />

the ages of 35 and 64. This age group comprises just over 50% of the adult population of the<br />

combined Shrewsbury & Atcham and Oswestry boroughs. Additionally, there will be a<br />

significant ‘appeal-overspill’ factor amongst 30-34 and 65-70 year olds, who comprise a<br />

further 14% of the adult population.<br />

(iii) The expected impact of the proposed service on existing services, in listenership terms.<br />

The expected impact of Shrewsbury Local Radio in Year One will reduce listening hours to<br />

the stations listed by the amounts outlined below within the <strong>SLR</strong> Total Survey Area:<br />

• Beacon Radio (23,000 hours per week less)<br />

• BBC Radio Two (27,000 hours per week less)<br />

• BBC Radio One (18,000 hours per week less)<br />

• BBC Radio Shropshire (21,000 hours per week)<br />

• BBC Radio Five Live (11,000 hours per week less)<br />

• BBC Radio Four (8,000 hours per week less)<br />

• Classic FM (9,000 hours per week less)<br />

• Classic Gold WABC (7,000 hours per week less)<br />

• talkSport (5,000 hours per week less)<br />

• Virgin Radio (3,000 hours per week less)<br />

• Other stations (3,500 hours per week less)<br />

31


Section 105(A): Ability to maintain proposed service<br />

2. Financial and Business Plan<br />

d) Audience Projections<br />

(iv) The basis on which the estimates above have been calculated, and any assumptions taken<br />

into account.<br />

Audience Projections:<br />

The Board’s projections for the performance of the station in its first five years have largely<br />

been derived from statistical analysis of empirical data from RAJAR ratings reports. A<br />

benchmark was provided by the start-up performances of all 19 local (not regional)<br />

commercial radio stations with Total Survey Areas of between 100,000 and 400,000 that had<br />

commenced broadcasting since 1999 and had participated in RAJAR. Their average<br />

performance at the end of each of their first three years on-air was as follows:<br />

YEAR 1 YEAR 2 YEAR 3<br />

Weekly reach % 17.2 % 18.4% 18.6%<br />

Average hours/week 9.4 hrs 8.7 hrs 9.7 hrs<br />

Shrewsbury Local Radio’s programme format is comparable to the stations included in this<br />

analysis, and its target audience, like those stations, encompasses a broad demographic<br />

spread. These figures were rounded and revised with a more natural year-on-year<br />

progression to arrive at the projections for the station’s performance in the first three years.<br />

The year-on-year increase in hours listened has been approximated to 20% for Years Two<br />

and Three, a rate of growth observed in start-up stations in similarly sized markets. Years<br />

four and five assume further steady growth in reach with static hours given the probable<br />

increase in listener promiscuity.<br />

To give added comfort to these calculations we employed a now widely used formula in<br />

context with our telephone research findings, (detailed in Appendix 10). Of our sample of 400<br />

adults, 88% said they were either “interested” or “very interested” in listening to a station<br />

meeting the description of <strong>SLR</strong>. We are aware that such questions tend to over-estimate the<br />

likelihood of actual listening and therefore the results were factored by adopting a standard<br />

practice of taking 75% of those who said they were “very interested” and 50% of those who<br />

said they were “interested” in listening. Experience elsewhere indicates that these factors<br />

give a more reliable indication of initial station trial and in this case suggest that 49% of<br />

adults aged 15+ will sample our station. Given our £15,000 launch marketing budget and<br />

confidence in delivering a high quality product from the outset, we have assumed that 38%<br />

of those who sample the station will become regular weekly listeners by the end of our first<br />

year on-air. This gives our year one (adult 15+) weekly reach of 20,120 listeners, 17% of the<br />

TSA population.<br />

Years two - five Weekly Reach:<br />

The experience of similarly-sized stations in other areas suggests that the initial weekly<br />

reach is likely to be less than 80% of the final potential, although given the dynamic nature of<br />

radio listening and volatility of Rajar, predictions are notoriously unreliable. We have,<br />

therefore, erred on the side of caution projecting that reach will steadily grow to 21% over the<br />

first five years of the licence period.<br />

Impact on Existing Stations:<br />

In the absence of detailed Rajar history specific to the Shrewsbury Local Radio area and our<br />

understanding of how shifting dynamics can lead to spurious results within 12 month rolling<br />

data, we made our forecasts using a process of casual empiricism with reference to the<br />

experience of similar sized stations in comparable radio landscapes.<br />

32


Section 105(A): Ability to maintain proposed service<br />

3. Transmission Proposals<br />

(i) Provide details of the transmission site, or sites, you propose to use, under the following<br />

headings:<br />

(a) Name and National Grid Reference of site;<br />

Shrewsbury Transmitter:<br />

Site Name: Shelton Water Tower<br />

National Grid Reference: SJ 465135<br />

(b) Height of site above Ordnance datum (in metres);<br />

90 metres<br />

(c) Height of site above ground level (in metres);<br />

27 metres<br />

(d) Radiated power in either or both planes of polarisation, and aerial radiation pattern (if no<br />

aerial radiation pattern is submitted, it will be assumed without exception to be omnidirectional).<br />

250 watts vertical + 250 watts horizontal<br />

Radiation Pattern (shown below)<br />

33


Section 105(A): Ability to maintain proposed service<br />

3. Transmission Proposals<br />

Oswestry Transmitter:<br />

(a) Name and National Grid Reference of site;<br />

Site Name: Selattyn<br />

National Grid Reference: SJ 266318<br />

(b) Height of site above Ordnance datum (in metres);<br />

305 metres<br />

(c) Height of site above ground level (in metres);<br />

25 metres<br />

(d) Radiated power in either or both planes of polarisation, and aerial radiation pattern (if no<br />

aerial radiation pattern is submitted, it will be assumed without exception to be omnidirectional).<br />

50 watts vertical + 50 watts horizontal<br />

Pattern - Directional (shown below)<br />

The applicant should confirm whether he believes that his intended mast aperture will be available,<br />

and whether, where required, planning permission can be obtained. Where appropriate, evidence to<br />

support this belief should be provided. Details of any negotiations which have been entered into with<br />

the site owner(s) should also be provided.<br />

Arqiva has confirmed to <strong>SLR</strong> that they have suitable sites with accommodation and aperture<br />

space available for the antenna systems at both Shelton Water Tower and Selattyn.<br />

Planning permission is required for the antennas, but for these established transmitter sites<br />

Arqiva believes that there should not be a problem in obtaining permission from the planning<br />

authorities.<br />

34


Section 105(A): Ability to maintain proposed service<br />

3. Transmission Proposals<br />

The information provided above must take into account any requirements set out in Section 2 of this<br />

Notice. In the event of minor non-compliance, <strong>Ofcom</strong> may revisit an applicant's proposals with a<br />

view to modest adjustment following award and closer scrutiny. Significant non-compliance may<br />

render the application liable to disqualification.<br />

Arqiva has chosen the sites at Shelton Water Tower and Selattyn. These provide excellent<br />

coverage for Shrewsbury and Oswestry respectively and the immediate surrounding areas.<br />

We are advised by Arqiva that these plans comply with the <strong>Ofcom</strong> restrictions for this<br />

licence.<br />

(ii) Please provide a detailed computer predicted map (in colour) of the coverage anticipated<br />

using the transmission site(s) and parameters described above.<br />

Shrewsbury Local Radio – Coverage Predictions<br />

Composite: Shelton Water Tower / Selattyn<br />

(iii) Describe proposed arrangements for transmission provision (installation, maintenance and<br />

repair). The transmission system and equipment must comply with the Engineering Code<br />

originally published by the Radio Authority, which represents <strong>Ofcom</strong>'s current policy and is<br />

available at:<br />

www.ofcom.org.uk/codes_guidelines/broadcasting/radio/codes/engineering_code.pdf<br />

Our Transmission provider, Arqiva, is well resourced to install the complete system and<br />

subsequently maintain and monitor the Transmission parameters. Telemetry and remote<br />

monitoring systems will provide information back to their control centre e.g. Carrier Power,<br />

lack of modulation etc on a 24 hr basis. Their maintenance personnel are highly trained with<br />

the necessary spares and test equipment to resolve any problem quickly.<br />

35


Section 105(A): Ability to maintain proposed service<br />

3. Transmission Proposals<br />

(iv) What is the anticipated time-lapse between the award of licence and start of broadcasting?<br />

Applicants should note that failure to commence broadcasting the service within two years of<br />

the date on which the licence is awarded is likely to lead to the offer of a licence to the<br />

successful applicant being withdrawn. In these circumstances the licence would be<br />

advertised afresh and a new competition would be held to award the licence.<br />

Shrewsbury Local Radio plans to launch within 26 weeks of the licence award.<br />

36


Section 105(B) and (C): Catering for Tastes and<br />

Interests And Broadening Choice<br />

4. Programming Philosophy<br />

(i) This subsection of the application should take the form of a statement setting out the<br />

applicant’s overall programming philosophy and vision for the radio service.<br />

Local radio listening in Shropshire suffers from inertia.<br />

Local commercial radio is regarded as a generally unsophisticated and uninspiring<br />

alternative to BBC radio. This was a view expressed repeatedly during our research and<br />

consultation process. When the sole reason for tuning into a station is given as ‘traffic news’,<br />

(focus group study, 31 st August/1 st September 2005), important though that is, the paucity of<br />

creativity and innovation within the programme output is underlined.<br />

Little more than lip service is paid to other local news and information, to local people and<br />

their stories, or to local events and issues. Historically, Beacon launched and ran the<br />

Shropshire service as a ‘stand-alone’ operation with dedicated local programming at key<br />

times. The station ran a well-resourced news operation with staff specifically tasked with<br />

generating Shropshire stories. Often Beacon staged outside broadcasts from high-visibility<br />

locations in Shrewsbury, Telford and around the county and there was a Beacon studio and<br />

sales office in the centre of town. Now things at Beacon are very different. All output<br />

originates in Wolverhampton, news bulletin durations have been trimmed back and ‘OB’s’<br />

are no longer part of the station’s operational philosophy. These changes have been noticed<br />

by Shrewsbury and Oswestry people and we believe the time is now right to bring back local<br />

radio to the county town…permanently. 24 hours a day 7 days a week from Shrewsbury – for<br />

Shrewsbury and its close neighbour, Oswestry.<br />

The people of Shrewsbury and Oswestry are moving away from commercial radio as a<br />

medium of first choice. This is, in part, because of the lack of a truly local service that they<br />

can call their own. As one of our research respondents put it, “there is not really a radio<br />

station that applies locally; it’s a betweeny sort of place.”<br />

So, if local people want local news, coverage of local events, local sports or business news,<br />

or features about local personalities, they turn to either the local newspaper or to BBC Radio<br />

Shropshire, but the existing commercial radio stations are generally viewed as little more<br />

than an alternative source of popular music to BBC Radio One and BBC Radio Two until,<br />

that is, the advertisements appear.<br />

The poor perception of the quality and content of the ads is borne out by the responses our<br />

research prompted from local companies. Our focus group research re-confirmed the view<br />

that existing local commercial stations do not work hard enough to service their clients with<br />

affordable, creative advertising that is attractive rather than off-putting to listeners. <strong>SLR</strong><br />

regards it as critical that the scheduling and content of its commercial activity, while<br />

necessarily distinct from its programming, is complementary to the station output as a whole.<br />

What makes the indifference shown towards local commercial radio even more disappointing<br />

is that BBC Radio Shropshire is not a leader in the BBC local radio network. Yet it is chosen<br />

in preference to local commercial radio as the provider of local news and information.<br />

<strong>SLR</strong> will deliver a locally focused service of news, information and entertainment within a<br />

carefully considered music mix aimed at a deliberately wide target demographic of 35-64.<br />

The 35-64 age range is forecast to show significant growth over the duration of the licence<br />

and there is also an identifiable, precise market gap left by existing commercial stations in<br />

the 45-54 demographic. These commercially important listeners will be central to <strong>SLR</strong>’s<br />

continual audience research.<br />

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In focusing on 35-64’s, <strong>SLR</strong> recognises the importance of providing a service to as wide an<br />

audience base as possible, while at the same time pursuing the distinct opportunity to grow<br />

the local commercial radio audience and widen listener choice.<br />

Our programme philosophy is firmly grounded on a definition of localness as being<br />

characterised by news, information, comment, outside broadcasts, what's-on information,<br />

travel news, interviews, charity involvement, weather, local artists, local arts and culture, etc,<br />

This is reflected in the <strong>SLR</strong> programme schedule and is designed to give listeners a feeling<br />

of complete ‘ownership’.<br />

MUSIC<br />

A root cause of the poor perception of the existing local commercial radio stations is the<br />

‘predictability’ and regularity of the music format.<br />

It is, of course, important for listeners to have the reassurance of knowing the type or genre<br />

of music they will hear, station by station. To be able to forecast, with a reasonable degree<br />

of accuracy, which song is likely to be played next is an extension of the format radio<br />

concept to a degree that inevitably impacts negatively on the audience.<br />

<strong>SLR</strong> will break through that fog of lacklustre predictability by scheduling album tracks<br />

alongside the more familiar hits and by providing a more extensive hit song selection than is<br />

the case with existing stations.<br />

The trend for commercial radio music programmers to rely purely on music selection<br />

software can lead to a sterile feel to the music choice as it is primarily based on the<br />

assumption that particular demographics only enjoy music from their formative years. Thus,<br />

FM stations tend to focus on hits from the 80’s to the present day, while AM stations major<br />

on ‘classic hits’ and thus regard the 60’s, 70’s and, to a lesser extent, the 80’s as their staple<br />

diet of music. This is precisely the policy adopted in Shropshire by the existing local stations,<br />

Beacon FM and WABC Classic Gold. Furthermore, these two stations form part of quasinational<br />

generic radio brands which means Beacon’s musical anatomy is identical to stations<br />

all over the UK. The output of Classic Gold WABC is, for all but four hours a day, exactly the<br />

same as all other Classic Gold Digital stations up and down the land. Within these<br />

constraints it has become increasingly difficult for Beacon Radio and Classic Gold WABC to<br />

adequately provide a valued local service for Shrewsbury and Oswestry.<br />

As part of our monitoring process we compared Beacon Radio’s music with two ‘sister’<br />

stations in the former GWR ‘Mix’ network, Nottingham’s 96 Trent FM and GWR FM in Bristol.<br />

We contrasted the 30 most played artists across a week and our findings, as expected,<br />

showed the musical ‘anatomy’ of the three stations to be almost identical:<br />

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The chart above shows the core artists, ranked by exposure, on Beacon Radio, Trent Fm<br />

and GWR FM. during the last week of October 2005. While this era-driven perspective has<br />

its place, and certainly played an important role in creating a national commercial ‘brand’,<br />

<strong>SLR</strong> regards this ‘time-warp’ policy as having become tired and unimaginative. Instead,<br />

drawing on hits from across the last four decades on the strength of how they research now<br />

with our target 35-64 year old audience, <strong>SLR</strong>’s music will play the songs that people tell us<br />

they want to hear, regardless of the era in which the music originated. Our music will be<br />

selected and scheduled locally giving us a valuable degree of manoeuvrability to respond to<br />

market changes.<br />

Thus, songs by the Beatles (and, in their case, by no means solely the hit singles) and the<br />

Beach Boys will be heard adjacent to records by Diana Ross, David Bowie, Spandau Ballet,<br />

Elton John and Robbie Williams. Mixed with hits and album tracks from newer stars such as<br />

James Blunt, Coldplay, Jamie Cullum, Dido, Keane, Maroon 5, Katie Melua, Scissor Sisters,<br />

Lucie Silvas and KT Tunstall, <strong>SLR</strong>’s music will offer the widest appeal for our 35-64<br />

audience.<br />

It will be diverse by virtue of the wider music choice it offers when compared to existing<br />

stations, but it will be chosen through constant, on-going listener research and will therefore<br />

have a clear but relatively unpredictable focus.<br />

At the heart of our music policy will be three over-riding principles:<br />

• A distinctive and popular foundation of quality album tracks by top-selling<br />

mainstream album artists;<br />

• A flavouring of Top Twenty hit singles from the past forty years, though not<br />

scheduled by an era-determined policy;<br />

• A selection of artists with a popular sophisticated appeal performing songs with<br />

‘meaningful’ lyrics.<br />

To graphically demonstrate how <strong>SLR</strong> will complement the existing commercial stations we<br />

have assembled a table which shows the 30 most played artists on Beacon Radio and<br />

Classic Gold WABC in the last week of October 2005 alongside a typical core artist roster for<br />

<strong>SLR</strong>:<br />

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BEACON RADIO *<br />

CLASSIC GOLD<br />

WABC *<br />

SHREWSBURY LOCAL<br />

RADIO<br />

Artist Plays Artist Plays Artist Plays<br />

JAMES BLUNT 43 THE BEATLES 54 U2 c.20<br />

SUGABABES 35 ABBA 32 COLDPLAY<br />

WILL YOUNG 34 ELTON JOHN 30 SIMPLY RED<br />

CHARLOTTE<br />

SCISSOR<br />

CHURCH 33 QUEEN 29 SISTERS<br />

KT TUNSTALL 33 SUPREMES 26 DIDO<br />

ROBBIE WILLIAMS 30 BEACH BOYS 25 KT TUNSTALL<br />

PUSSYCAT DOLLS 26 BEE GEES 25 THE BEATLES<br />

COLDPLAY 23 MARVIN GAYE 25 KATIE MELUA<br />

CRAIG DAVID 23 CLIFF RICHARD 23 REM<br />

JAMIROQUAI 23 EURYTHMICS 22 EURYTHMICS<br />

MADONNA 22 FOUR TOPS 22 PAUL WELLER<br />

OASIS 22 BLONDIE 21 TEXAS<br />

DANIEL POWTER 22 ELO 20 MARY J BLIGE<br />

GREEN DAY 21 ELVIS PRESLEY 20 LUCIE SILVAS<br />

AMY<br />

LEE RYAN 18 ROD STEWART 20 WINEHOUSE<br />

KELLY CLARKSON 17 DIANA ROSS 19 CRAIG DAVID<br />

ATHLETE 16 FLEETWOOD MAC 18 STEELY DAN<br />

ARETHA<br />

ANASTACIA 15 STEVIE WONDER<br />

SMOKEY<br />

18 FRANKLIN<br />

SCISSOR SISTERS 15 ROBINSON<br />

DUSTY<br />

17 MAROON 5<br />

KAYNE WEST 11 SPRINGFIELD 17 DANIEL POWTER<br />

UNITING NATIONS<br />

NATALIE<br />

10 PHIL COLLINS 16 TRAVIS<br />

IMBRUGLIA 9 MONKEES 16 BONNIE RAITT<br />

DANIEL<br />

ROBBIE<br />

BEDINGFIELD 8 ROLLING STONES 16 WILLIAMS<br />

STEVE<br />

BLACK EYED PEAS 8 KINKS 15 WINWOOD<br />

ROB THOMAS 8 TINA TURNER 14 DIRE STRAITS<br />

BARBRA<br />

BODY ROCKERS 6 DAVID BOWIE 13 STREISAND<br />

THE CORAL 6 CARPENTERS 13 DAVID GRAY<br />

KYLIE MINOGUE 6 EAGLES 13 JAMES BLUNT c.5<br />

* Actual plays week commencing 30 th October 2005<br />

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SPEECH<br />

<strong>SLR</strong> will reflect the character of both Shrewsbury and Oswestry by airing the opinions and<br />

interests of local people and providing a forum for participation. It will be a truly independent<br />

local platform for the expression of the local population. Outside broadcasts will also<br />

enhance our ability to involve local people with our programming. Our telephone research<br />

showed that 90% of 35-64 year olds felt that it was important for local radio to have a<br />

presence at local events. We intend to take that message fully on board and adopt a yearround<br />

calendar of off-station activity. Typical events might include the annual Shrewsbury<br />

Christmas Lights switch on, the town’s Visual Arts Festival, the Summer Season of arts and<br />

literature, the world famous Shrewsbury Flower Show and, not forgetting Darwin Festival,<br />

celebrating the town's role as the birthplace of Charles Darwin. Oswestry, too offers a rich<br />

assortment of editorial and OB opportunities.<br />

The two towns are different from one another in a number of ways and recognise those<br />

differences as clearly as they identify their similarities. It will not be <strong>SLR</strong>’s mission to unite<br />

disparate attitudes, but it will provide an opportunity for the people of each town to<br />

appreciate and understand their neighbours better. Selective use of phone-ins within<br />

programmes, alongside text and e-mail messages, will enable listener feedback and<br />

involvement.<br />

<strong>SLR</strong> will empower the people of Shrewsbury and Oswestry with a facility that will, for the first<br />

time, give both towns an independent local voice. The <strong>SLR</strong> website will also become an<br />

important supportive resource to the station’s programme output and will become a dynamic<br />

and valued communication link for local people.<br />

Essential information, including regular news and sports updates, plus traffic and weather<br />

information, plus the localised flood alerts, will all appear regularly throughout the day. It will<br />

come into its own during times of localised bad weather conditions when listeners will be<br />

able to see at a glance which roads are closed and whether their child’s school has been<br />

affected.<br />

The accepted concept of speech radio is that it is much more labour intensive than music<br />

radio, and is therefore considerably more expensive. In adopting a format reliant on<br />

blending entertaining and relevant speech content with a popular, diverse music mix, <strong>SLR</strong> is<br />

clear about the necessity to remain viable in a relatively small market as a commercial radio<br />

business. To fulfil this, it will employ broadcasters with the skills and ability required to live<br />

up to the station’s commitments.<br />

<strong>SLR</strong> is under no illusions about the challenge of recruiting appropriately experienced talent.<br />

We are mindful of comments made during our focus group research about commercial<br />

radio’s “poor presenters” and “too much inane chatter”. Perhaps this perception has been<br />

fuelled by Beacon Radio’s afternoon presenter’s decision to use the name “Stoopid” John<br />

Wyre! A consequence of the development and nature of format radio across the local<br />

commercial network in recent years has been a significant reduction in quality of the talent<br />

pool of broadcasters. It is no surprise to read comments emerging from our research<br />

suggesting that presenters on local commercial radio are regarded as less professional than<br />

their counterparts in the BBC.<br />

Nonetheless, we have already identified and, subject to being awarded the licence, three<br />

potential mainline presenters and Head of News. Their backgrounds and experience is<br />

contained in the confidential appendix. These individuals have been carefully selected by<br />

virtue of their knowledge of and empathy towards the area we intend to serve. They will be<br />

entirely in tune with their audience, and will engage with the people of Shrewsbury and<br />

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Oswestry to provide a radio station that will, from Day One, feel, in some ways, as though it<br />

has been there forever.<br />

They will be able to clearly enunciate and deliver their material without compromising the<br />

English language. Being able to speak clearly should be a basic requirement of a radio<br />

broadcaster and <strong>SLR</strong> will ensure that its on-air voices are capable of doing so without<br />

patronising their listeners.<br />

Our vision is that presenters in all key dayparts on <strong>SLR</strong> must have an extensive knowledge<br />

of the area and people they broadcast to. If not Shropshire born we would at the very least<br />

expect presenters to live within the transmission area and share the lifestyle experiences of<br />

their listeners.<br />

It will also be part of the company’s commitment to its employees to establish and maintain a<br />

staff training and development programme. Our ongoing relationship with Laser<br />

Broadcasting will form a crucial part of this process and whilst applying across all disciplines<br />

within <strong>SLR</strong>, it will be fundamental to securing the quality of on-air talent. At an early stage,<br />

<strong>SLR</strong> will seek to achieve Investors In People standard.<br />

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(ii) The strategies which the applicant proposes to implement in regard to:<br />

catering for the tastes and interests, general or particular, of persons living in the area;<br />

TARGET AUDIENCE<br />

Shrewsbury Local Radio’s programming plans have been formulated paying close attention<br />

to the various research studies we have commissioned over the months. Specifically:<br />

1. The 400 sample telephone research project which took place in August 2005 and<br />

was designed to provide a clear snapshot of the tastes and interests of people in<br />

Shrewsbury and Oswestry. The full tables of this project are available in Appendix 10.<br />

2. Our two focus group studies carried out in August and September 2005. These<br />

provided a valuable insight on current listening behaviour, perceptions on ‘localness’,<br />

a feel for the types of content that might be required of a new station and the<br />

propensity to listen to a new local radio station. Full details are available in Appendix<br />

7.<br />

3. The findings of our monitoring exercise on the existing local commercial stations<br />

broadcasting to the area, Beacon FM and Classic Gold WABC. Detailed findings are<br />

available in Appendixes 8 and 9.<br />

4. Audience trends for existing stations as measured by Rajar, although the data<br />

available applies to the wider Beacon transmission area which takes in the West<br />

Midlands ‘sister’ station to Beacon Shropshire. Full details can be found in Appendix<br />

6.<br />

5. The 503 sample telephone survey which followed the trial broadcast of Shrewsbury<br />

Local Radio in May and June 2005. Full survey details can be found in Appendix 5.<br />

PROGRAMME PLANS<br />

Shrewsbury Local Radio will be essential listening for anyone who wants news, information<br />

and discussion on the issues that matter most to Shrewsbury, Oswestry and the surrounding<br />

areas. It will also provide a forum for listeners to discuss and debate matters that are<br />

important to them, from war to weather, from finance to fashion, from politics to pubs, all set<br />

in an appealing music context of quality album tracks by top-selling album artists combined<br />

with Top Twenty hits from the past forty years. We cannot over-state the importance of news<br />

in our programming plans for Shrewsbury Local Radio. 85% of 35-64 year olds questioned in<br />

our August telephone survey said they wanted news from a local station – slightly higher<br />

than music, (84%). Other information-based elements also scored very highly.<br />

It is no surprise that our telephone survey in August confirmed that the local press is<br />

regarded as the main source of local news, (84% of 35-64 year olds), when regional<br />

television – both BBC and ITV – is so Birmingham-centric in its approach to news and<br />

current affairs. No doubt both the BBC’s ‘Midlands Today’ and ITV’s ‘Central News’ can<br />

point to the variety of stories they have covered from this part of Shropshire, but the only<br />

credible broadcast alternative to the local newspaper is BBC Radio Shropshire, and its remit<br />

is to cover the entire county.<br />

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4. Programming Philosophy<br />

<strong>SLR</strong> will be a full service radio station, offering the specific locality of Shrewsbury, Oswestry,<br />

and the area immediately surrounding those towns, a lively, entertaining and provocative mix<br />

of speech and music, balanced to maximise its audience appeal, without compromising<br />

either programming element.<br />

The BBC local station, BBC Radio Shropshire, has a high speech content, but this appears<br />

alongside a curiously eclectic mix of music, which has no obvious focus or rationale. It is, by<br />

name and definition, a county-wide station aimed at the entire county of Shropshire and, in<br />

common with other similarly-positioned BBC local stations around England, it is programmed<br />

to attract an audience that is primarily aged 65+. An incredible 47% of the listening hours<br />

generated by BBC local radio are from the 65 plus demographic. (Source Rajar Q2 2005).<br />

What BBC Radio Shropshire listeners receive and accept in the absence of an alternative is<br />

county-wide coverage, when what they seek is a much more precise consideration of what is<br />

happening on their doorstep. Our focus group study showed that Shrewsbury and Oswestry<br />

people are loyal to their area and take a healthy interest in local issues.<br />

<strong>SLR</strong> will focus precisely on the interests of Shrewsbury and Oswestry. The station’s appeal<br />

will be much broader and younger than BBC Radio Shropshire, and it will be far more<br />

relevant in every way than the existing local commercial stations, Beacon FM and Classic<br />

Gold WABC. It will be sharply keyed into the attitudes, events and affairs of the local area,<br />

and it will provide a meaningful community focus for the significant local audience that<br />

currently regards local commercial radio as, at best, its second choice of listening.<br />

Research will be a continuous process for <strong>SLR</strong>, ensuring that the radio station is constantly<br />

in tune with what its listeners want to hear. This will be accomplished through regularly<br />

commissioned qualitative and quantitative market research and continual music research.<br />

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NEWS<br />

News will play a key role in our output. It will be a core element of our speech programming.<br />

As mentioned previously our research confirms the paramount importance of reliable,<br />

informative, up-to-the minute news to local people. Moreover, while not ignoring the wider<br />

regional, national and international perspective, <strong>SLR</strong> news must be essentially local to the<br />

two towns it serves. The people who live in Shrewsbury and Oswestry have an active<br />

interest in what happens on their doorstep, as well as maintaining pertinent views on the<br />

wider world.<br />

They are particularly proud of and keen to preserve the quality of life that living and working<br />

in Shropshire provides. Clean, fresh air, coupled with beautiful and plentiful open<br />

countryside, are regularly cited by local people among the pluses of living in the area, as are<br />

both the pleasures and uncertainties provided by the meandering River Severn.<br />

Yet this apparently casual, largely rural backdrop should not suggest a sleepy, slow news<br />

environment. It is a dynamic and diverse editorial area, fuelled by a broad-based<br />

agricultural, industrial and commercial business community, as well as a lively social diary.<br />

Like many parts of the UK, the sub-regional economy has suffered a number of changes,<br />

some of them potentially damaging with job losses experienced in both the manufacturing<br />

and the service sector. Coupled with challenging times for the agriculture industry, these<br />

economic shifts have prompted local government and local commerce in Shropshire to<br />

devise a number of strategies to meet them.<br />

Local authorities and business, working in partnership have created initiatives to take their<br />

area forward, and <strong>SLR</strong> will report keenly on the progress made as well as playing a part itself<br />

as a local company contributing to the local economy.<br />

It is encouraging to note how small businesses thrive in Shrewsbury and Oswestry. <strong>SLR</strong> will<br />

be a small business itself and it will report on and engage with its counterparts as both<br />

advertisers and companies active in the area with stories to tell.<br />

Through the day, <strong>SLR</strong>’s news and information will provide the foundations and the<br />

supporting structure of a programme schedule that listeners will find both stimulating and<br />

entertaining. It will be fun without being trivial, but serious when it needs to be, balancing<br />

lightness of touch with consistent credibility.<br />

Two extended news bulletins – one at lunchtime, the other during afternoon drive time – will<br />

present a comprehensive round up of the day’s news and allow for the considered<br />

examination of one or two major local issues. While news bulletins throughout peak daytime<br />

hours will each run at 3 minutes duration, the 08.00 bulletin in the weekday breakfast show<br />

will extend to 5 minutes, playing a major role in that programme’s agenda-setting function.<br />

The first locally presented bulletin of the day will air at 07.00. With a relatively short journey<br />

to work for most people, the demand for local news earlier than this is quite low. A first<br />

bulletin at 07.00 will also allow <strong>SLR</strong> to apply its news resources appropriately within the<br />

hours required by our audience and it will give us an advantage by breaking news stories at<br />

that critical hour, giving us a clear lead with the largest potential audience of the day.<br />

This is typical of the importance <strong>SLR</strong> will place on news management. With a necessarily<br />

tightly run staffing complement, news management will be a vital aspect of the station’s<br />

operation. Too often, radio stations dispense with a news story after it has been read two or<br />

three times, without considering who has heard it and whether it should be revived for a<br />

fresh audience later in the day. Similarly, the quick grab, sound-bite culture that broadcast<br />

news has developed often leaves the listener with only a hastily presented tit-bit of<br />

information, with barely any explanation or reasoning.<br />

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Therefore, <strong>SLR</strong> will treat one or two major stories each day differently to others and they will<br />

be the subject of an extended interview or feature. As well as providing shorter clips for<br />

general bulletins, the extended interview will be featured at up to 60-seconds duration in the<br />

ten-minute extended lunchtime bulletin and at up to 90-seconds in the fifteen-minute<br />

extended drivetime news. The inclusion of these feature interviews will be trailed through<br />

the day in other news bulletins as well as programmes. We will have a policy of breaking<br />

from programming for important local news alerts such as flood warnings.<br />

Thus, the debate over demands for a new walkway at Shrewsbury Castle, and the planned<br />

closure of Age Concern’s St Martin’s Day Centre in Oswestry will be given fair and proper<br />

air-time, with the listener offered a greater understanding of the issues involved than is<br />

currently provided by local commercial radio.<br />

Tom Craig, the father of the “new” James Bond, actor Daniel Craig, lives near Oswestry and<br />

will provide reaction and insight to his son’s 007 debut. The impact of the threatened bird flu<br />

pandemic on the wild bird food supplier, Garden Bird Supplies Ltd, based at Wem near<br />

Shrewsbury, will be closely monitored.<br />

NEWS: locally presented mix of local, national & world stories<br />

Mon – Fri Sat Sun<br />

0700 3 min 3 min<br />

0730 2 min headlines & sport<br />

0800 5 min 3 min 3 min<br />

0830 2 min headlines & sport<br />

0900 3 min 3 min 3 min<br />

0930 1 min headlines<br />

1000 3 min 2 min 2 min<br />

1100 3 min 2 min 2 min<br />

1200 3 min 2 min 2 min<br />

1300 10 min<br />

1400 3 min<br />

1500 3 min<br />

1600 3 min<br />

1630 1 min headlines & sport<br />

1700 15 min<br />

1730 1 min headlines & sport<br />

1800 3 min<br />

IRN national/world news hourly throughout remainder of day and night.<br />

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PROGRAMME SCHEDULE<br />

The breakfast show will set the daily agenda for Shrewsbury and Oswestry. It will appeal to<br />

those busy and on the move, with news and feature content complementing essential<br />

information, such as travel news, weather, time-checks and sports updates. Set in the<br />

context of the show’s music, competitions and listener involvement, it will shape the day for<br />

35 to 64 year olds across the area, with listeners’ calls, texts and e-mails invited to provide<br />

comment and reaction to the issues of the day.<br />

The post-breakfast sequence will follow the lively, listener and issue-driven breakfast show<br />

with three hours of quality music, offered side-by-side with a mid-morning brainteaser<br />

competition and regular features from lifestyle and relationships experts. It will not be a case<br />

of "..It’s Monday, so it must be the gardener..." but rather they will be invited to appear<br />

relative to the issues of the day or the topicality of their subject. <strong>SLR</strong> will also seek, where<br />

possible, to identify local personalities and characters to provide these guest expert<br />

contributions, thus adding important local life and vigour to the output. Listeners’ calls will<br />

again be an integral part of the content, with callers invited to contribute to the discussion<br />

and often to challenge some of the assumptions made and attitudes taken by the expert<br />

guests.<br />

The lunchtime news update, running at up to ten minutes duration each weekday, will see<br />

the focus return to key local issues that are clearly of interest to the target audience.<br />

From mid-day to mid-afternoon, music will again be the key programme element. In the early<br />

afternoon, the programme will reflect the leisure and cultural aspects of the area, and will<br />

include interviews with local personalities such as the colourful and outspoken local<br />

landowner and wildlife expert Sir Michael Leighton. Celebrity guests, including actors and<br />

other entertainers appearing at local venues, such as the Shrewsbury Music Hall and<br />

eventually, the planned “New Entertainment Venue” in Shrewsbury, as it is currently called,<br />

will also appear from time to time.<br />

Writing in The Guardian in April 2004, Michael Billington said:<br />

“Shrewsbury, a naturally dramatic town encircled by the River<br />

Severn, has its place in theatrical history. Master Betty - a child<br />

prodigy for whom Pitt adjourned the House of Commons so that<br />

MPs could attend his Hamlet - was born there in 1791. George<br />

Farquhar's The Recruiting Officer is set against Shrewsbury's brick<br />

Georgian buildings. Henry IV part one climaxes in Harry Hotspur's<br />

defeat at the Battle of Shrewsbury. And memories of a recent<br />

production of Shakespeare's history play haunt the town's<br />

theatrical life.”<br />

It is a history and on-going cultural experience that <strong>SLR</strong> will tap into, by reporting on<br />

productions at Shrewsbury’s Gateway Arts Centre, the Attfield Theatre in the Guildhall at<br />

Oswestry and performances by groups such as the Oswestry Musical Theatre Company and<br />

the Shrewsbury Amateur Operatic Society.<br />

As drivetime nears, the accent will be on entertainment and information for those on their<br />

journeys home. The second extended weekday bulletin of around fifteen minutes at 17.00,<br />

will cover the key stories of the day and provide a considered report on at least one. Then,<br />

as the working day unwinds, the pace and issue-focused nature of the breakfast show<br />

returns as <strong>SLR</strong> delivers an informed and entertaining end to daytime programming with<br />

news, weather, sports and traffic bulletins scheduled throughout.<br />

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Evening and weekend programmes will include the opportunity for more specialist and<br />

specific programming, with such diverse interests as sports, arts and specialist music genres<br />

catered for, including a spotlight on the thriving local music scene.<br />

The name of Charles Darwin resonates round Shrewsbury, but so, too, does that of the late<br />

radio presenter John Peel. Darwin and Peel, under his real name John Ravenscroft, were<br />

both educated at Shrewsbury School, although the academic similarity ends there. Peel was<br />

not a gifted scholar, but he was encouraged in his passion for pop and rock music by one of<br />

his teachers. The support that Peel, in turn, provided for new, young musicians is keenly felt<br />

in this part of Shropshire. As in other parts of the <strong>SLR</strong> programme output, localness will be at<br />

the core when the station’s spotlight falls on local bands and solo artists. It is worth noting<br />

that among other former pupils of Shrewsbury School are the broadcasters Nick Hancock,<br />

Nick Owen and Michael Palin, suggesting a fertile breeding ground for the talent that <strong>SLR</strong><br />

will be looking to recruit going forward.<br />

<strong>SLR</strong> will identify itself completely with the area it serves, in particular by reflecting and<br />

covering in its programmes and news bulletins the major festivals and special events that<br />

underpin local culture. The annual Darwin Festival, the Shrewsbury Summer Season, the<br />

Shrewsbury Folk Festival, the Oswestry Show and the world famous Shrewsbury Flower<br />

Show will all be featured. The Oswestry Food and Craft Festivals held in May and December<br />

each year will be reported on, and in 2006, the UK Ukulele Festival will be held at Oswestry<br />

School and will make for colourful and diverse listening.<br />

The annual events and festivals will also see participation from <strong>SLR</strong>, as the radio station<br />

becomes part of the local fabric.<br />

PROGRAMME SCHEDULE<br />

N.B.: All programme titles are working titles, as is <strong>SLR</strong> as the name of the station.<br />

Individual programmes, other than the two news updates, will be named after the presenters<br />

hosting them.<br />

Monday-Friday:<br />

00.00: Through The Night<br />

(Following the midnight news) non-stop music for the late and early hours<br />

06.00: <strong>SLR</strong> Breakfast Show<br />

News, music and talk entertainment to provide a lively and dynamic start to the day,<br />

featuring the big stories and issues of the day from the local area, across the UK, and<br />

the rest of the world. Plus regular news and sports bulletins, travel updates, weather<br />

and business news. Hourly news bulletins will be complemented by headlines at<br />

08.30, 07.30 & 09.30. Audience participation will be a key element through<br />

competitions, phone calls, texts and e-mails.<br />

09.30: <strong>SLR</strong> Daytime<br />

Through the morning and into the afternoon, quality music, competitions and a daily<br />

feature with a guest, including experts who can advise on such diverse issues as<br />

parenting, retirement, holidays, health & fitness, and caring for pets. Listeners’ phone<br />

call, texts and e-mails will add to the discussion and challenge some of the<br />

assumptions and answers given. Plus regular news, weather and travel updates.<br />

48


Section 105(B) and (C): Catering for Tastes and<br />

Interests And Broadening Choice<br />

4. Programming Philosophy<br />

13.00: Lunchtime Update<br />

10 minutes of local, national and world news<br />

13.10: <strong>SLR</strong> In The Afternoon<br />

The afternoon moves on with music to the fore until 14.30 when a featured guest – a<br />

local personality or, occasionally, a visiting celebrity, joins the show. A relaxing feel<br />

continues until 16.00 when the afternoon moves towards drivetime and regular travel,<br />

weather, business and sports updates come to the fore, alongside listener reaction<br />

and comment on the day’s headlines. With news bulletins on the hour plus headlines<br />

and sport at 16.30.<br />

17.00: Drivetime Update<br />

15 minutes of local, national and world news<br />

17.15: <strong>SLR</strong> Evening<br />

News, music and talk entertainment to provide an informed end to the working day;<br />

with sports news, weather checks, travel bulletins and listener reaction. Hourly news<br />

bulletins, with headlines and sport at 17.30, plus what’s happening in the area<br />

tonight, from who’s speaking at that night’s local black-tie dinner to what’s on at the<br />

cinema and local theatres, a guide to the area’s best restaurants and a chance to<br />

check out the best DVD’s, CD’s and downloads.<br />

20.00 (-midnight): Eight Till Late<br />

Specialist music, sports coverage and news of local arts and local music makers<br />

through the evening, with music and chat up to midnight.<br />

00.00: Through The Night<br />

(As above), following the midnight news – non-stop music till 06.00<br />

49


Section 105(B) and (C): Catering for Tastes and<br />

Interests And Broadening Choice<br />

5. Proposed Format<br />

A blank Format is attached at Appendix 3. Fill it in, ensuring that each of the following criteria are<br />

addressed within, where it is felt appropriate to do so. It should follow the style of <strong>Ofcom</strong> Formats,<br />

which can be viewed at www.ofcom.org.uk/static/radiolicensing/amfm/analogue-main. Reasons for<br />

omission of any particular criteria (and it is accepted that not all criteria will be relevant to all<br />

applications) should be set out separately. The Format will form part of the licence. Therefore,<br />

questions of clarification may be asked prior to licence award and the wording amended to reflect<br />

this, if necessary.<br />

(a) Station Name (working titles accepted)<br />

(b) Service Duration. This is the number of hours you will broadcast each day. It should<br />

also include the number of hours of locally-made programming (i.e. programming<br />

made within the licence area) promised and, if appropriate, the extent to which you<br />

plan to automate programming.<br />

(c) Character of Service. This is a clear, one or two sentence, description of the output<br />

and target audience.<br />

(d) Detail. This should address, where appropriate:<br />

• A clear description of the type/range of music<br />

• Specialist music programmes<br />

• A level of speech content (peak/non-peak)<br />

• Any specific plans for local material<br />

• News obligations, local and national (weekdays and weekends, peak-time, nonpeak,<br />

etc)<br />

• Other character-defining elements of programming<br />

The proposed format for Shrewsbury Local Radio is detailed on the next page.<br />

50


Section 105(B) and (C): Catering for Tastes and<br />

Interests And Broadening Choice<br />

5. Proposed Format<br />

Licence Outline<br />

SHREWSBURY LOCAL RADIO STATION FORMAT<br />

Station Name SHREWSBURY LOCAL RADIO (Working Name)<br />

Licence Area Shrewsbury and Oswestry (as defined in <strong>Ofcom</strong>’s Measured Coverage Area<br />

map)<br />

Frequency TBA<br />

Service Duration 24 hours a day (all locally produced/presented)<br />

Definitions<br />

Speech “Speech” excludes advertising, programme/promotional trails & sponsor<br />

credits, and may be calculated across daytime on non-daytime.<br />

Peaktime(s) “Peaktime(s)” refers to Weekday Breakfast and Afternoon Drivetime output,<br />

and Weekend Late Breakfast.<br />

Daytime “Daytime” refers to 0600 to 1900 weekdays, and weekend output from 0800<br />

Locally<br />

produced/presented<br />

Character of Service<br />

Details<br />

to 1400.<br />

Production and presentation from within the licence area. All requirements<br />

for locally produced/presented output must include peaktime.<br />

A lively, full service local radio station for 35 to 64 year olds, focused on<br />

Shrewsbury, Oswestry and the surrounding areas, playing a wide range of popular<br />

hits from the last 40 years with local news, information and interviews forming an<br />

essential part of the output.<br />

Speech content will not fall below 25% during daytime hours, 15% outside of these times,<br />

and will include local news, sport, community information, weather and travel news,<br />

entertainment and what’s on information.<br />

News will be broadcast at least hourly, with locally produced and presented bulletins from<br />

0700 to 1800 on weekdays, (including two extended bulletins), 0700 to 1200 on Saturday<br />

and 0800 to 1300 on Sunday. Regular updates of weather, travel and what’s on information<br />

of particular appeal to Shrewsbury and Oswestry will be broadcast from 0600 to 2200 every<br />

day.<br />

Speech will feature significantly within the output, focusing on issues, events and activities<br />

relevant to Shrewsbury and Oswestry, including studio discussions, interviews, phone-ins and<br />

short features. Sports coverage will play a key role in the output, with daily bulletins and<br />

sports programmes scheduled according to the appropriate season and fixture dates.<br />

Music will comprise a wide range of popular hit songs ranging from the 60s to the present<br />

day.<br />

During non-daytime output, specialist music programming complementing the main mix may<br />

be scheduled.<br />

Automation will be limited to a maximum of 2200-0600 daily, and all programming will be<br />

produced and presented locally.<br />

51


Section 105 (D): Evidence of Local Demand or Support<br />

6. Evidence of Demand<br />

This section should provide an analysis of the reasons as to why it is considered that there is a<br />

demand for the type of service proposed, with a reference to the size and nature of the proposed<br />

target audience. If original market research has been undertaken, please provide the following<br />

information for each piece of research:<br />

(i) A statement of the key objectives of the research<br />

(ii) The specific questions that the research sought to answer<br />

(iii) How the research was conducted<br />

(iv) The size and composition of the sample(s)<br />

(v) When and where the research was conducted<br />

(vi) A summary of the main findings from the research, showing how these demonstrate<br />

evidence of demand for the service proposed.<br />

(vii) Full data tables for any quantitative research undertaken (these may be submitted in<br />

confidence).<br />

Please provide your responses to (i) – (v) in tabular format.<br />

The Board of Shrewsbury Local Radio commissioned a series of market research projects in<br />

order to understand the local media market as much as possible and to inform its proposals.<br />

The information gleaned from the results has made the Board confident that its plans for a<br />

new local radio station will be warmly welcomed both by listeners and advertisers in<br />

Shrewsbury and Oswestry.<br />

The key points from the research are:<br />

THE MARKET<br />

• Total radio listening has fallen from 88% to 84% reach during the last five years;<br />

• Commercial radio’s share of listening has fallen from 51% to 49% during the last five<br />

years;<br />

• Local (not regional) commercial radio’s share of listening has fallen from 31% to 18%<br />

during the last five years;<br />

• Beacon FM’s share of listening has fallen from 12% to 9% during the last five years;<br />

• Classic Gold WABC’s share of listening has fallen from 4% to 1% over the last five<br />

years;<br />

• BBC Radio Shropshire currently achieves an 18% share of listening within its survey<br />

area (substantially more than Beacon FM and Classic Gold WABC combined within<br />

their survey areas).<br />

TASTES & INTERESTS<br />

• The main sources of information about local news and events are paid-for local<br />

newspapers (57%) and free local newspapers (28%), more so than local radio (39%);<br />

• The greatest demand from potential listeners within the target 35 to 64 year old age<br />

group to a new local radio station is for:<br />

News (85%);<br />

Music (84%);<br />

Weather (78%);<br />

Information on local events (74%);<br />

Traffic and travel news (72%).<br />

52


Section 105 (D): Evidence of Local Demand or Support<br />

6. Evidence of Demand<br />

• The target audience of 35 to 64 year olds said that, on a new local radio station, they<br />

want to hear about issues from:<br />

Shropshire (73%);<br />

Their town (70%);<br />

Their local neighbourhood (51%).<br />

TRIAL BROADCAST<br />

• 28% of those sampled were aware of Shrewsbury Local Radio, and 14% had listened<br />

to the trial broadcast;<br />

• Of those who heard the trial broadcast, there was significant approval of:<br />

The music (83% said it was “very good” or “good”)<br />

The news and information (81%)<br />

• The local content (79%)<br />

• The music/speech mix (76%);<br />

• 60% of the target audience aged 35-64 said they would be “very likely” or “likely” to<br />

listen to a permanent version of the trial broadcast.<br />

EVIDENCE OF DEMAND<br />

• Offered a specific description of the proposed station:<br />

“A local radio station focused specifically on Shrewsbury, Oswestry and the<br />

immediately surrounding area with:<br />

well-known, familiar hit songs from the 1960s to the present day<br />

presenters who know and understand the area<br />

hourly local news bulletins during daytime<br />

regular local weather, travel, entertainment and what’s on information<br />

community information and daily interviews or features involving local people<br />

lively, entertaining chat<br />

regular publicity for community organisations and their events”<br />

• Qualitative research [Research Project #3] found that the majority of focus group<br />

participants welcomed the description and said they would listen to a station of this<br />

description;<br />

• Quantitative research [Research Project #5] found that the proportion of listeners who<br />

said they would be “very interested” or “interested” in listening to a station of this<br />

specific description was:<br />

94% of the target audience of 35-64 year olds;<br />

93% of 35-44 year olds;<br />

94% of 45-54 year olds;<br />

94% of 55-64 year olds.<br />

EVIDENCE OF ADVERTISER SUPPORT<br />

• 52% of businesses said they would be “very likely” or “quite likely” to advertise their<br />

business on a new local radio station of the description given to them;<br />

• 56% of businesses said they would be more likely to advertise on a new local radio<br />

station if it was able to offer them advice on effective radio advertising.<br />

The results of each successive piece of research assisted the Board in shaping its proposals<br />

for the new radio station, ensuring that it will provide appropriate programming to a receptive<br />

audience and appropriate opportunities for local advertisers.<br />

53


Section 105 (D): Evidence of Local Demand or Support<br />

6. Evidence of Demand<br />

The research projects are itemised below and have been referred to by number throughout<br />

this application:<br />

RESEARCH PROJECT #1<br />

(i) Key objectives:<br />

• To establish listening levels to the Shrewsbury Local Radio Restricted Service<br />

Licence [RSL] broadcast from 13 May to 31 May 2005;<br />

• To determine the likelihood of listening to a new permanent radio station.<br />

(ii) Specific questions asked:<br />

• Radio stations listened to during the last seven days;<br />

• Awareness of, and listening to, the RSL broadcast;<br />

• Appreciation of programming elements within the RSL broadcast;<br />

• Likelihood to listen to a permanent local radio station.<br />

(iii) How research conducted:<br />

• Quantitative research commissioned from Marketing In Practice research<br />

specialists.<br />

(iv) Size and composition of sample:<br />

• Telephone survey of 503 adults (aged 15+) living within the RSL transmission<br />

area, randomly selected from residential numbers;<br />

• Quotas applied to ensure the sample reflected the population profile by age and<br />

sex.<br />

(v) Dates and location of research:<br />

• Fieldwork conducted between 31 May and 4 June 2005;<br />

• Within the RSL transmission area.<br />

(vi) Summary of main findings:<br />

• The highest weekly reach was recorded by: BBC Radio Shropshire (30%), BBC<br />

Radio Two (27%), BBC Radio One (22%) and BBC Radio Four (19%);<br />

• 28% of respondents were aware of Shrewsbury Local Radio;<br />

• 14% of respondents had listened to the Shrewsbury Local Radio trial broadcast;<br />

• Of those respondents who had heard the Shrewsbury Local Radio trial<br />

broadcast, 83% said the music was “very good” or good”, 81% said the news and<br />

information was “very good” or “good”, 79% said the local content was “very<br />

good” or “good”, and 76% said the music/speech mix was “very good” or “good;<br />

• 60% of respondents said they would be “very likely” or “likely” to listen to a<br />

permanent version of the Shrewsbury Local Radio trial broadcast.<br />

(vii) Full data tables<br />

• Full research report submitted as Appendix 5<br />

RESEARCH PROJECT #2<br />

(i) Key objectives:<br />

• To analyse radio listening habits within the market over the last five years.<br />

(ii) Specific questions asked:<br />

• Analysis of RAJAR data from 2000 to 2005 for stations audible within the Beacon<br />

FM survey area.<br />

54


Section 105 (D): Evidence of Local Demand or Support<br />

6. Evidence of Demand<br />

(iii) How research conducted:<br />

• Quantitative research commissioned from Radio Development International<br />

research specialists.<br />

(iv) Size and composition of sample:<br />

• RAJAR data from six consecutive annual sample points – Quarter 2 in 2000,<br />

2001, 2002, 2003, 2004 and 2005.<br />

(v) Dates and location of research:<br />

• September 2005;<br />

• Desk research.<br />

(vi) Summary of main findings:<br />

• Trends from 2000 to 2005 [data indexed for population and TSA changes] within<br />

the Beacon FM TSA:<br />

• All radio – reach down from 88% to 84%, hours down 17%;<br />

• Commercial radio – hours down 20%, share down from 51% to 49%;<br />

• Local/regional commercial radio – hours down 24%, share down from 43% to<br />

40%;<br />

• Local (not regional) commercial radio – hours down 50%; share down from 31%<br />

to 18%;<br />

• Beacon FM – hours down 41%, share down from 12% to 9%;<br />

• Classic Gold WABC – hours down 78%, share down from 4% to 1%;<br />

• BBC Radio – hours down 13%, share up from 47% to 50%;<br />

• BBC Radio Two – hours down 2%, share up from 12% to 14%;<br />

• BBC Radio holds four of the seven top ranked stations;<br />

• Beacon FM is ranked fourth in the market, compared to second five years ago;<br />

• Classic Gold WABC is ranked fifteenth in the market, compared to eighth five<br />

years ago;<br />

• BBC Radio Two is ranked first in the market, compared to fourth five years ago.<br />

(vii) Full data tables<br />

• Full research report submitted as Appendix 6<br />

RESEARCH PROJECT #3<br />

(i) Key objectives:<br />

• Current radio listening behaviour;<br />

• Reactions to existing radio stations;<br />

• Perceptions of “localness”;<br />

• Content required from a new local radio station;<br />

• Type of listener interaction with station preferred by listeners;<br />

• Reactions to description of new station;<br />

• To determine the propensity to listen to a new local radio station.<br />

(ii) Specific questions asked:<br />

• Current radio listening patterns;<br />

• Attitudes to radio stations;<br />

• Perceptions of “localness”;<br />

• Description of the “perfect” radio station;<br />

• Preferences for music, news and other speech items;<br />

• Styles of presenters preferred;<br />

55


Section 105 (D): Evidence of Local Demand or Support<br />

6. Evidence of Demand<br />

• Likelihood to listen to a new local radio station of this specific description:<br />

“A local radio station focused specifically on Shrewsbury, Oswestry and<br />

the immediately surrounding area with:<br />

well-known, familiar hit songs from the 1960s to the present day<br />

presenters who know and understand the area<br />

hourly local news bulletins during daytime<br />

regular local weather, travel, entertainment and what’s on information<br />

community information and daily interviews or features involving local<br />

people<br />

lively, entertaining chat<br />

regular publicity for community organisations and their events”<br />

(iii) How research conducted:<br />

• Qualitative research commissioned from Matters Of Fact research specialists.<br />

(iv) Size and composition of sample:<br />

• Two focus groups, one male and the other female, each of which:<br />

comprised 9 to 10 respondents;<br />

included all social grades;<br />

at least 50% listened to the radio daily;<br />

at least 50% listened to local commercial radio at least several times<br />

per week;<br />

none to reject listening to local commercial radio.<br />

(v) Dates and location of research:<br />

• The evening of 31 August 2005 and 1 September 2005;<br />

• The Lion Hotel, Shrewsbury.<br />

(vi) Summary of main findings:<br />

• Participants exhibited a high level of switching between stations or promiscuity;<br />

• BBC stations were the “gold standard” of radio because of better presenters,<br />

better music and a better balance of music/chat with more interesting<br />

programmes;<br />

• Local newspapers were a major source of local information;<br />

• Local stations were thought to have poorer presenters and too much inane<br />

chatter;<br />

• National radio was thought to be more professional, and adverts were a major<br />

irritant in local radio;<br />

• Beacon FM was thought to be parochial, with poor presenters, poor quality<br />

programmes and too many repetitive adverts;<br />

• Shropshire residents were loyal to their area and took a healthy interest in local<br />

issues;<br />

• A new local radio station should ensure it has: better presenters, less (or better<br />

scheduled) adverts, a good variety of music, more local information and better<br />

programme production;<br />

• Local news should be presented in a professional, serious tone and cover<br />

Shropshire rather than the Midlands;<br />

• Travel information is one of the main reasons for listening to local radio,<br />

particularly to and from work;<br />

• Interviews are enjoyed, particularly with interesting people living in or visiting the<br />

area;<br />

56


Section 105 (D): Evidence of Local Demand or Support<br />

6. Evidence of Demand<br />

• Special features should be kept to a minimum so as not to overcrowd the station<br />

output;<br />

• E-mail and text messages were considered the best ways to contact the radio<br />

station;<br />

• Local stations should take an active role in local events and charities;<br />

• A local accent for presenter is not important as good local knowledge;<br />

• Reactions to the station description were positive and in line with respondents’<br />

expectations.<br />

(vii) Full data tables<br />

• Full research report submitted as Appendix 7<br />

RESEARCH PROJECT #4<br />

(i) Key objectives:<br />

• To analyse the content of existing local commercial radio stations audible in the<br />

Shrewsbury market.<br />

(ii) Specific questions asked:<br />

• Analysis of output of Beacon FM and Classic Gold WABC.<br />

(iii) How research conducted:<br />

• Quantitative research commissioned from Matters Of Fact research specialists.<br />

(iv) Size and composition of sample:<br />

• The output of the relevant stations on one weekday 0600 to 1800.<br />

(v) Dates and location of research:<br />

• Wednesday 14 September 2005;<br />

• Desk research.<br />

(vi) Summary of main findings:<br />

• Beacon FM daytime output:<br />

34% average speech content;<br />

59% of songs played were from the 2000s;<br />

19% of songs played were from the 1990s;<br />

20% of songs played were from the 1980s;<br />

2% of songs played were from the 1970s;<br />

78% of songs played were post-1990;<br />

local news accounted for 40% of total news output;<br />

40% of commercials were local advertisers.<br />

• Classic Gold WABC daytime output:<br />

33% average speech content;<br />

2% of songs played were from the 2000s;<br />

8% of songs played were from the 1990s;<br />

31% of songs played were from the 1980s;<br />

30% of songs played were from the 1970s;<br />

29% of songs played were from the 1950s/1960s;<br />

59% of songs played were pre-1980;<br />

local news accounted for 54% of total news output;<br />

45% of commercials were local advertisers.<br />

57


Section 105 (D): Evidence of Local Demand or Support<br />

6. Evidence of Demand<br />

(vii) Full data tables<br />

• Full research report submitted as Appendixes 8 and 9<br />

RESEARCH PROJECT #5<br />

(i) Key objectives:<br />

• To ascertain existing radio listening habits;<br />

• To examine perceptions of existing local radio stations;<br />

• To determine the importance of various programmes and features for a new local<br />

radio station;<br />

• Likelihood to listen to a new local radio station of a specific given description.<br />

(ii) Specific questions asked:<br />

• Place, frequency and time spent listening to radio;<br />

• Radio stations listened to;<br />

• Favourite station overall, for music, and for talk;<br />

• Source of local information;<br />

• Interest in various speech radio elements;<br />

• Importance of various speech elements in local station;<br />

• Frequency of various speech elements on local station;<br />

• Likelihood to listen to a new local radio station of this specific description:<br />

“The new station is aimed at a broad range of listeners, but will specifically target the<br />

35 to 55 age range. It will play well known, familiar hit songs from the 1960s to the<br />

present day and will have a local emphasis in terms of the presenters, news, weather,<br />

travel, entertainment and community information”.<br />

(iii) How research conducted:<br />

• Quantitative research commissioned from Matters Of Fact research specialists.<br />

(iv) Size and composition of sample:<br />

• Telephone survey of 400 adults (aged 16+) living in Shrewsbury or Oswestry<br />

who listen to the radio;<br />

• Sample re-weighted by age and gender to accurately reflect demographic<br />

composition of adult population in Shrewsbury and Oswestry.<br />

(v) Dates and location of research:<br />

• Fieldwork conducted during August 2005;<br />

• Sample restricted to Shrewsbury and Oswestry.<br />

(vi) Summary of main findings:<br />

• Amongst the entire sample, the most popular radio stations listened to were BBC<br />

Radio Shropshire (36%), Beacon FM (34%), BBC Radio One (32%), BBC Radio<br />

Two (25%) and BBC Radio Four (17%);<br />

• Amongst the target 35 to 64 year old audience, the most popular stations were<br />

BBC Radio Shropshire (38%), Beacon FM (36%), BBC Radio Two (27%), BBC<br />

Radio One (23%) and BBC Radio Four (17%);<br />

• Amongst the target 35 to 64 year old audience, the stations considered to have<br />

the best talk programmes were BBC Radio Shropshire (22%), BBC Radio Two<br />

(20%), BBC Radio Four (19%) and BBC Radio Five Live (15%);<br />

58


Section 105 (D): Evidence of Local Demand or Support<br />

6. Evidence of Demand<br />

• Asked what they listened to on the radio, the target audience of 35 to 64 year<br />

olds said music (81%), news (68%), weather (49%), traffic information (39%) and<br />

a specific regular programme (36%);<br />

• Amongst the target 35 to 64 year old audience, the main source of local news<br />

and events was paid-for local newspapers (57%), local radio (39%) and free local<br />

newspapers (28%);<br />

• The target 35 to 64 year old audience wanted these programme elements on a<br />

local radio station – news (85%), music (84%), weather (78%), information on<br />

local events (74%) and travel information (72%);<br />

• The target 35 to 64 year old audience would like to hear about issues from –<br />

Shropshire (73%), their town (70%), their local neighbourhood (65%), the UK<br />

(65%) and neighbouring towns (51%);<br />

• 60% of 35 to 64 year olds wanted to hear news every hour throughout the day;<br />

• Asked about travel information, 78% of 35 to 64 year olds wanted to hear<br />

information about local roads, 75% about road closures, and 63% about the main<br />

routes to motorways;<br />

• 90% of 35 to 64 year olds said it was important for local radio to be present at<br />

local events;<br />

• 94% of 35 to 64 year olds said a local radio station should support local charities<br />

and businesses;<br />

• 72% of 35 to 64 year olds said that if talk items of local interest were included in<br />

a local station’s programming, they would be more likely to listen to it than their<br />

current favourite station;<br />

• Given a specific description of the new radio station [see above], 94% of 35 to 64<br />

year olds said they would be “very interested” or “interested” in listening<br />

(including 93% of 35 to 44 year olds, 94% of 45 to 54 year olds and 94% of 55 to<br />

64 year olds).<br />

(vii) Full data tables<br />

• Full research report submitted as Appendix 10<br />

RESEARCH PROJECT #6<br />

(i) Key objectives:<br />

• To determine the propensity of local businesses to advertise on the new local<br />

radio station.<br />

(ii) Specific questions asked:<br />

• Advertising used by business in previous year;<br />

• Annual budget for advertising;<br />

• Reasons for using different media;<br />

• Experiences of radio advertising;<br />

• Expectations of new local radio station;<br />

• Acceptable price for advertising package;<br />

• Interest in sponsorship opportunities;<br />

• Factors that would encourage advertisers.<br />

(iii) How research conducted:<br />

• Qualitative research commissioned from Matters Of Fact research specialists.<br />

59


Section 105 (D): Evidence of Local Demand or Support<br />

6. Evidence of Demand<br />

(iv) Size and composition of sample:<br />

• Eleven face-to-face and telephone in-depth interviews with businesses located in<br />

Shrewsbury or Oswestry who have advertised commercially during the last year<br />

and would not reject radio advertising.<br />

(v) Dates and location of research:<br />

• 31 August to 6 September 2005;<br />

• Shrewsbury and Oswestry.<br />

(vi) Summary of main findings:<br />

• The most popular forms of advertising were: Yellow Pages (8 mentions), local<br />

newspaper display advertising (7), paid advertising in magazines & directories (6)<br />

and radio (4);<br />

• Annual advertising budgets varied from £400 to £96,000;<br />

• Local press display advertising was considered to be the most effective medium<br />

because of the immediate response;<br />

• Radio advertising suffered poor repeat business and poor retention of clients;<br />

• Radio advertising was considered less effective because of the difficulty in<br />

measuring the response;<br />

• High repetition rates of commercials was an issue, as was poor follow-up service<br />

of stations;<br />

• Businesses expected a new local station to have a broader playlist, a broader<br />

audience, be more diverse and more community-based;<br />

• Businesses’ main demand from a new station was for good listening figures;<br />

• Advice on how to measure the effect of advertising (or similar measurement tool)<br />

would be appreciated from the station;<br />

• Businesses found it difficult to suggest an acceptable price for an advertising<br />

package, but felt it should be less costly than Beacon FM;<br />

• A broad target audience aged 25+ was considered acceptable for a new local<br />

station;<br />

• Sponsorship opportunities were considered important;<br />

• Businesses felt that radio was not marketed well enough and that advice to<br />

advertisers was needed at the outset of a campaign but also afterwards with<br />

follow-up.<br />

(vii) Full data tables<br />

• Full research report submitted as Appendix 11<br />

RESEARCH PROJECT #7<br />

(i) Key objectives:<br />

• To analyse key trends of population data and economic data for the Shrewsbury<br />

area.<br />

(ii) Specific questions asked:<br />

• Analysis of current population;<br />

• Analysis of population projections;<br />

• Analysis of employment trends;<br />

• Analysis of employment projections;<br />

• Analysis of categories of employment;<br />

• Analysis of average incomes.<br />

60


Section 105 (D): Evidence of Local Demand or Support<br />

6. Evidence of Demand<br />

(iii) How research conducted:<br />

• Quantitative research commissioned from Matters Of Fact research specialists.<br />

(iv) Size and composition of sample:<br />

• The Census 2001 and Statistics Office data.<br />

(v) Dates and location of research:<br />

• September 2005;<br />

• Desk research.<br />

(vi) Summary of main findings:<br />

• Findings displayed with tables and graphs in attached research report.<br />

(vii) Full data tables<br />

• Full research report submitted as Appendix 12<br />

RESEARCH PROJECT #8<br />

(i) Key objectives:<br />

• To determine the propensity of local businesses to advertise on the new local<br />

radio station.<br />

(ii) Specific questions asked:<br />

• Estimated annual spend on advertising;<br />

• Advertising methods used;<br />

• Satisfaction with radio advertising campaigns;<br />

• Likelihood to advertise on a new local radio station;<br />

• Acceptability of costs for radio advertising campaign.<br />

(iii) How research conducted:<br />

• Quantitative research commissioned from Matters Of Fact research specialists.<br />

(iv) Size and composition of sample:<br />

• Telephone survey of 50 local businesses in Shrewsbury and Oswestry, randomly<br />

selected from a commercial database, specifically interviewing the executive<br />

responsible for advertising decisions within each company.<br />

(v) Dates and location of research:<br />

• August 2005;<br />

• Within the proposed station’s transmission area.<br />

(vi) Summary of main findings:<br />

• 84% of businesses advertised locally in the last year;<br />

• More than half the businesses spent less than £5,000 per annum on advertising;<br />

• 71% of businesses had advertised in Yellow Pages, 62% newspaper display<br />

advertising, 55% direct mail, 55% magazines, 52% newspaper classified<br />

advertising, 31% posters and 24% radio;<br />

• Of those businesses who had used radio, 56% were quite satisfied with the<br />

outcome of their campaign, 33% were not very satisfied and 11% were not at all<br />

satisfied;<br />

61


Section 105 (D): Evidence of Local Demand or Support<br />

6. Evidence of Demand<br />

• 52% of businesses said they would be “very likely” or “quite likely” to advertise<br />

their business on a new local radio station of the description given to them;<br />

• 56% of businesses said they would be more likely to advertise on a new local<br />

radio station if it was able to offer them advice on effective radio advertising.<br />

(vii) Full data tables<br />

• Full research report submitted as Appendix 13<br />

62


Section 105 (D): Evidence of Local Demand or Support<br />

7. Evidence of Support<br />

This section should provide evidence of support, where appropriate, from the applicant's potential<br />

audience or from prospective local advertisers.<br />

Shrewsbury Local Radio’s steadfast belief is that any successful small-scale radio station<br />

needs to engage local people by providing compelling, relevant programming, reflecting –<br />

and being an active part of – everyday local life and, most importantly, involving local<br />

people in its output. From the outset, therefore, we have sought to do just this by undertaking<br />

an exhaustive programme of meetings, consultations, presentations and trial broadcasts.<br />

Our aim was to nurture what will become a solid, long-term, two-way relationship between<br />

Shrewsbury Local Radio and the people of the towns we hope to serve. Over the months we<br />

have sought to outline our proposals in detail to as many people as possible whilst<br />

encouraging feedback and suggestions along the way to help formulate the winning new<br />

sound for this special part of England.<br />

Trial Broadcast 13 th – 31 st May 2005<br />

Our decision to stage a trial broadcast in May 2005 was driven by two clear objectives:<br />

1. To allow the people of Shrewsbury to sample a ‘flavour’ of the type of locally-focused<br />

radio we propose to offer on a full time basis should we win the licence, and;<br />

2. To gauge the propensity to listen to a radio station focused on the town.<br />

The station was launched from specially constructed studios positioned in a highly visible<br />

and accessible location in the centre of Shrewsbury on Friday 13 th May and broadcast<br />

continuously for 19 days. We were delighted with the professionalism of the output and the<br />

quality of music in particular was very highly regarded by those who listened. However, it<br />

was the local ‘passion’ and involvement of grass roots individuals that gave the station its<br />

own unique character and endearing ‘Shrewsbury feel’.<br />

<strong>SLR</strong> 88.7FM<br />

Trial Broadcast – Content<br />

1. Music<br />

Because this broadcast formed a part of our formal research process we used a combination<br />

of market intelligence and ‘gut’ feeling to formulate a workable programming template for the<br />

station. The format we adopted was music-led and broad-based using a database of around<br />

1,500 songs, primarily classic hits. Each clock hour featured no more than three ‘current’ or<br />

‘recent’ songs. Music never exceeded 70% of any hour and, in daytime, we often carried as<br />

much as 50% speech.<br />

2. Editorial<br />

Local news and information were considered to be key weapons in the station’s audiencewinning<br />

arsenal. Bulletins of local news were collated on site and broadcast from 7am – 6pm<br />

on weekdays with weekend morning updates. Traffic news was broadcast at Breakfast and<br />

Drive Time and sport featured on Saturdays between 3 and 7pm. We also set out to involve<br />

local people in our programmes by interviewing those with a story to tell.<br />

63


Section 105 (D): Evidence of Local Demand or Support<br />

7. Evidence of Support<br />

A selection of the many guests joining us during the week appears below:<br />

• Lezley Picton, Manager of Shrewsbury’s new multi-million pound theatre complex<br />

• Adam Burgan, Marketing Manager for Shrewsbury Music Hall<br />

• Fred Jones, Shrewsbury Branch Chairman of the Parkinson’s disease Society promoting<br />

a forthcoming 25 th anniversary concert.<br />

• Chris Eldon Lee, Director of Shrewsbury Summer Festival<br />

• John Simblet, Secretary of the Shrewsbury Town Centre Residents Association<br />

discussing the ramifications of late licensing of public houses<br />

• Edmund Coxhead, Partner in leading Shropshire-based legal firm providing a carefully<br />

produced and impartial legal advice service<br />

• James Thompson, Shrewsbury Summer festival, ‘science in the street’<br />

• Sia Millard, British Heart Foundation.<br />

• Norman Porter, Organising Secretary, Friends of Royal Shrewsbury Hospital discussing<br />

fundraising plans<br />

• Leah Treherne, Phoenix Meta 4, psychotherapy, hypnotherapy.<br />

We were greatly encouraged by the level of support the station received from local business.<br />

The principal advertisers on <strong>SLR</strong> 88.7 appear below:<br />

• Travail Employment Agency<br />

• Darwin Financial Management<br />

• Pots and Patios<br />

• Bennets<br />

• Thermo Spas & Hot Tubs<br />

• Destini Financial Planning<br />

• Inchcape Direct Car Supermarket<br />

• PCB Solicitors<br />

• Specsavers Opticians<br />

• Carpets Direct<br />

• The Bell Inn<br />

• ASDA<br />

• Monarch Scheduled Airlines<br />

Conclusion<br />

The trial broadcast was considered to have been a wholly worthwhile experience leaving<br />

members of the Shrewsbury Local Radio team feeling more positive than ever about the<br />

viability of their dream to give the people of Shrewsbury a station they can truly call their<br />

own. There was a tangible air of excitement surrounding the broadcast and a real sense of<br />

‘closeness’ to the listener manifested in the level of response to the various competitions<br />

during the station’s run via the ‘phone, SMS text message and e-mail. These included a<br />

Breakfast Show promotion offering two return flights to any Monarch Airlines destination and<br />

the ‘Ultimate <strong>SLR</strong> Giveaway’ with two ‘goodie boxes’ each worth over £100.<br />

64


Section 105 (D): Evidence of Local Demand or Support<br />

7. Evidence of Support<br />

Shrewsbury Local Radio Website<br />

A dedicated website was first published in April 2005 to coincide with the trial broadcast the<br />

following month. www.shrewsburylocalradio.com contains the following sections designed to<br />

provide prospective listeners and commercial partners with a comprehensive insight on our<br />

plans:<br />

• What’s New - Keeping visitors updated on our application process<br />

• About - The background to our submission<br />

• Full Time - How a permanent <strong>SLR</strong> will enhance local life and employ local people<br />

• FAQ - Answers to all the questions we have been asked over the months<br />

• People - Details of the key individuals driving our vision forward<br />

• Local Info - Our new voice on the local media scene<br />

• Support - An opportunity to make suggestions for the new local radio station<br />

• Contact - Contact details and an online form for feedback<br />

Meetings & Consultations<br />

29 th April 2005, General Introductory Meeting, Prince Rupert Hotel, Shrewsbury<br />

This was a general introduction to Shrewsbury Local Radio hosted by <strong>SLR</strong> Director, Nigel<br />

Reeve who explained the group’s philosophy and set out plans for a new local commercial<br />

radio station for Shrewsbury and Oswestry. 23 invited guests from all walks of local life<br />

attended and there was a lively discussion about the proposals. The general response was<br />

extremely positive which fuelled the group’s ambitions to make <strong>SLR</strong> a reality.<br />

Nigel stressed that <strong>SLR</strong>’s philosophy calls for a truly local independent voice for Shrewsbury<br />

and Oswestry and he invited potential local investors to offer their support. He explained<br />

what the licensing process was and the expected timescale.<br />

<strong>SLR</strong>’s RSL Sales Manager, Gavin Harrison then spoke further about advertising rates on the<br />

forthcoming RSL, expected rates for a full time station and what the process was to have an<br />

advert made.<br />

Paul Roberts followed with a brief presentation about the proposed programming policy for<br />

the RSL and how the licence application with be written with the benefit of several bespoke<br />

research studies.<br />

Full Minutes were taken and are available upon request.<br />

19 th May 2005, Emergency Services Meeting, Lion Hotel, Shrewsbury<br />

Members of the local Emergency Services were invited along to meet the Shrewsbury Local<br />

Radio team for an informal discussion to explore ways in which the proposed station may be<br />

able to assist during times of need.<br />

Full Minutes were taken and are available upon request.<br />

19 th May 2005, Charities, Societies & Clubs Meeting, Lion Hotel, Shrewsbury<br />

A selection of invited representatives from the main clubs and societies in the proposed<br />

transmission area joined the Project Director and Project Manager for a briefing on the new<br />

station and how they may be able to become involved with its programmes.<br />

Full Minutes were taken and are available upon request.<br />

65


Section 105 (D): Evidence of Local Demand or Support<br />

7. Evidence of Support<br />

20 th May 2005, Prospective Investors Meeting, Lion Hotel, Shrewsbury<br />

<strong>SLR</strong>’s Chris Langmore made a presentation to those present on the merits of investing in<br />

<strong>SLR</strong> and agreed to distribute a prospectus out to any interested parties, all of whom present<br />

were.<br />

Some useful and very encouraging comments were made on what the attendees would like<br />

to hear from <strong>SLR</strong>.<br />

“BBC Radio Shropshire used to have a business programme which was axed 18 months a<br />

go. It would be excellent if you could provide local business news.”<br />

Full Minutes were taken and are available upon request.<br />

20 th May 2005, Business Sector Meeting, Lion Hotel, Shrewsbury<br />

Nigel Hinton<br />

Key members of the local business community joined <strong>SLR</strong> representatives for a briefing on<br />

the <strong>SLR</strong> vision and the plans for a new local station for Shrewsbury and Oswestry. The<br />

response was extremely positive and the Shrewsbury Lions representatives in particular<br />

were keen to register that any media help to publicise the work of themselves and local other<br />

charities would be very welcome. Some invitees expressed their concern over rumours that<br />

a rival group is wholly owned by MNA.<br />

“My members would listen to a local commercial radio station if it provided quality news,<br />

discussion and what’s on programmes.”<br />

Full Minutes were taken and are available upon request.<br />

3 rd June 2005, Consortium Meeting, Lion Hotel, Shrewsbury<br />

Full Minutes were taken and are available upon request.<br />

29 th June 2005, Consortium Meeting, Lion Hotel, Shrewsbury<br />

Full Minutes were taken and are available upon request.<br />

5 th August 2005, Shadow Board Meeting, Lion Hotel, Shrewsbury<br />

Full Minutes were taken and are available upon request.<br />

10 th August 2005, Consortium Meeting, Lion Hotel, Shrewsbury<br />

Full Minutes were taken and are available upon request.<br />

Tony Fitton, Shrewsbury Rotary<br />

15 th September 2005, Consortium Meeting, Lion Hotel, Shrewsbury<br />

Full Minutes were taken and are available upon request.<br />

66


Section 105 (D): Evidence of Local Demand or Support<br />

7. Evidence of Support<br />

21 st September 2005, Business Chamber, Lord Hill Hotel, Shrewsbury<br />

Shrewsbury Local Radio’s senior team represented the station at a capacity gathering of<br />

Shrewsbury Business Chamber. This formed an ideal platform from which to set out plans<br />

for the station and we received a very warm response from delegates which included<br />

Carolyn Downs, Chief Executive of Shropshire County Council and Robin Hooper, her<br />

counterpart at Shrewsbury & Atcham Borough Council. Our pledge to provide a truly<br />

independent local voice was extremely well received.<br />

26 th September 2005, General Consultation, Wynnstay Hotel, Oswestry<br />

This was perhaps the warmest welcome the <strong>SLR</strong> team received in the consultation process.<br />

There was a distinct feeling expressed by those present that the town had never truly been<br />

served by local radio over the years. <strong>SLR</strong> agreed to take on board a suggestion that the<br />

station should maintain a dedicated contribution studio in the town. Full Minutes were taken<br />

and are available upon request.<br />

27 th September 2005, General Consultation, Lord Hill Hotel, Shrewsbury<br />

During this final consultation meeting <strong>SLR</strong>’s senior representatives gave a progress update<br />

on the licence application process. Invitees asked numerous questions about <strong>SLR</strong> and, once<br />

again, the team was encouraged by the apparent support for their proposals to bring local<br />

radio to Shrewsbury and Oswestry. Full Minutes were taken and are available upon request.<br />

3 rd November 2005, <strong>SLR</strong> Board Meeting, The Lion Hotel, Shrewsbury<br />

A final meeting of the Board prior to submission of the licence application. Members perused<br />

the application document and agreed that it represented their ambitions well.<br />

67


Section 105 (D): Evidence of Local Demand or Support<br />

8. Declaration<br />

Applicants are required to conclude their submission by responding to the following question:<br />

Do you confirm that, to the best of your knowledge and belief:<br />

(i) the applicant is not a disqualified person in relation to the licence by virtue of the<br />

provisions of section 143(5) of the Broadcasting Act 1996 (relating to political<br />

objects);<br />

(ii) no director or person concerned directly or indirectly in the management of the<br />

company or the applicant group is the subject of a disqualification order as defined by<br />

section 145(1) of the Broadcasting Act 1996;<br />

(iii) no person involved in the application has been convicted within the past five years of<br />

an unlicensed broadcasting offence and that the applicant will do all it can to ensure<br />

that no person so convicted will be concerned in the provision of the service, the<br />

making of programmes included in it, or the operation of a radio station if the<br />

applicant is granted a licence; and<br />

(iv) any matters which might influence <strong>Ofcom</strong>’s judgement as to whether the directors<br />

and substantial shareholders involved in the application are fit and proper persons to<br />

participate in a radio licence have been made known to <strong>Ofcom</strong>?<br />

Applicants should note that <strong>Ofcom</strong> reserves the right to revoke a licence if at any time any material<br />

statement made is found to be false and to have been made by the applicant or any member or<br />

officer thereof knowing it to be false, and that in the circumstances of section 144 of the<br />

Broadcasting Act 1996, the provision of false information or the withholding of relevant information<br />

with the intention of misleading <strong>Ofcom</strong> could incur a criminal conviction and a disqualification from<br />

the holding of a licence.<br />

The Board of Shrewsbury Local Radio Limited confirms that, to the best of our<br />

knowledge and belief, all of the conditions listed in this declaration are met, and will<br />

continue to be met for the full duration of the licence.<br />

Alan Mullett<br />

Chairman<br />

Shrewsbury Local Radio Limited<br />

68

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