An Application to Ofcom for the Channel Islands Local DAB Digital Radio Multiplex JERSEY

ALDERNEY

HERM St Peter Port GUERNSEY SARK

An application to Ofcom for the Channel Islands local DAB digital radio multiplex JERSEY

St Helier Part A Public Section July 2019 Contents

Page

3 Executive Summary

7 General Information

8 Section 51(2)(a) and (b): Extent of proposed coverage area and timetable for coverage roll-out

22 Section 51(2)(b): Timetable for commencement of services

23 Section 51(2)(c): Ability to establish and maintain proposed service

34 Section 51(2)(d): Catering for local tastes and interests

49 Section 51(2)(e): Broadening of local commercial DAB choice

50 Section 51(2)(f): Local demand or support

58 Section 51(2)(g): Fair and effective competition

64 Declaration

65 Certificate of Incorporation

2 Executive Summary

Please provide a summary of your application, of no more than four pages in length.

Bailiwick Broadcasting Ltd (Bailiwick) was established to apply for and, if successful, to operate the Channel Islands DAB digital radio multiplex. Bailiwick is a wholly owned subsidiary of Nation Broadcasting Ltd (Nation), the UK’s third largest operator of local radio licences.

Nation owns, manages and is a shareholder in a number of multiplex licences across England, Scotland and Wales. Nation’s track record as investors in commercial and digital radio across the British Isles over 20 years, gives it the experience and credibility to offer a distinctive and attractive local multiplex proposal for the Channel Islands.

As multiplex operators, Nation can demonstrate a track record of technical expertise and innovation, industry commitment and financial stability. We have considered carefully what is the most likely successful financial model for the Channel Islands and, by using our experience, contacts and interests, we have ensured a multiplex that enjoys affordable transmission and a strong line up of programme services.

Our multiplex goals in the Channel Islands are to;

• Launch successfully and build confidence in the local DAB platform. • Be cooperative and transparent in dealings with all stakeholders. • Achieve the best DAB coverage at the best price. • Extend competition and plurality of media ownership in the Channel Islands. • Introduce new regional radio services with relevant local content. • Promote the benefits and choice DAB offers to local listeners.

As an independent multiplex operator, we are well placed to cater for the tastes and interests of listeners in the Channel Islands.

We are mindful of Ofcom’s requirement to secure, among other things, “the availability throughout the United Kingdom and the Bailiwick of Jersey/Guernsey of a wide range of television and radio services which (taken as a whole) are both of high quality and calculated to appeal to a variety of tastes and interests”. We will introduce an unrivalled bouquet of services for a local multiplex launch in the British Isles, with an impressive choice and number of services that include existing analogue stations, new to terrestrial brands and established UK national services.

Developing our plans, we were acutely aware of pricing and the viability of this multiplex. As service providers ourselves on other UK local multiplexes, we have experienced frustration at the pricing structures which can make operating a new service extremely challenging. Consequently, we have priced carriage on this multiplex fairly and transparently, with flexible terms, dependent on contract length and service levels.

While many local multiplexes in the UK do not yet take advantage of DAB+, we have embraced it and are proud to be pioneers of its spectrum efficiency. It will allow Channel Islanders to enjoy the full benefits of the digital radio revolution, offering a large number of new and existing services and, for the first time, allowing UK commercial services coverage equivalence with BBC national services.

3 Our Programme Services

We propose a range of services, catering to the widest possible range of tastes, interests and demographics. We have included a varied and innovative mix of music and speech, mainstream and niche, new and established brands, local, UK, regional and specific Island services. With something for almost every demographic, the variety on offer should encourage listeners to embrace DAB. With a significant number of confirmed service providers, including the BBC and established commercial operators, we are well placed to succeed.

We will offer the existing analogue services in Jersey and Guernsey first choice to provide a nominated local service for each Island. This means they can take advantage of analogue licence rollover when their licences expire in 2020. The BBC has identified its preference for BBC Radio Jersey and BBC Radio Guernsey to use DAB+ to offer audiences both a simulcast of their current FM services alongside coverage of their respective Island parliaments. We will offer Channel 103 and Island FM the opportunity to either broadcast in original DAB or in DAB+.

Maximising the use of DAB+, we have allocated capacity to a host of new services at a level that is affordable and that allows their business models to develop over time. All except one service are in stereo – an important element since we believe digital radio should both sound good and provide choice. Capacity has been allocated with an overall ambition to provide the widest possible range of services, broadening choice for the largest possible number of people and expanding the number of media owners in the market.

SERVICE FORMAT LOCAL TRANSMISSION

BBC Radio Jersey FM BBC Local Radio Existing FM service

BBC Radio Guernsey FM BBC Local Radio Existing FM service

BBC Radio Jersey AM BBC States of Jersey Assembly Coverage Existing AM service

BBC Radio Guernsey AM BBC Guernsey States of Deliberation Coverage Existing AM service

Adult Contemporary Adult Contemporary New to terrestrial radio

Angel Radio Music and information for the over 60s New to terrestrial radio

Bailiwick Radio Classics Classic pop hits New to terrestrial radio

Bailiwick Radio Hits Hot adult contemporary New to terrestrial radio

Channel 103 Jersey local service Existing FM service

CHR Contemporary hit radio New to terrestrial radio

Chris Country Country music New to terrestrial radio

Crown 80s Pop and rock music from the 1980s New to terrestrial radio

Crown Easy Melodic easy listening New to terrestrial radio

Crown Radio Broad music from 1980s to today New to terrestrial radio

Crown Rock Rock music New to terrestrial radio

Gaydio Programmes for the LGBT community New to terrestrial radio

Island FM Guernsey local service Existing FM service

Little Radio Children’s programmes New to terrestrial radio

Melodic Hits Melodic Hits New to terrestrial radio

News Radio UK Rolling news and information New to terrestrial radio

Community Radio Community Radio Existing FM and New Terrestrial service

Radio Caroline Album music New to terrestrial radio

Skylab Radio Chill-out music New to terrestrial radio

Visitor Radio Channel Island tourist information New to terrestrial radio

Access Radio Capacity reserved for local broadcasts New to terrestrial radio

4 Meeting the Ofcom licence award criteria

Proposed coverage and timetable to launch

We will launch the multiplex in Q4 2020, using 3 transmitters to deliver ‘outdoor coverage’ (e.g. to in-car and mobile receivers) to 93.43% of roads and indoor coverage (e.g. to kitchen radios) to 111,469 adults (81.97%). These coverage levels compare well to recently launched multiplexes in the UK.

Ability to establish and maintain the service

The number of confirmed services give us the financial stability to launch and maintain our plans.

Nation has a track record of successfully launching a number of radio stations and local multiplexes across Wales, Scotland and England. Last year, we acquired the trial multiplex in Glasgow and we have transformed it by introducing a large number of new programme services and significantly improving its coverage and transmission stability.

Nation is an established UK operator, having grown through licence wins and acquisition over two decades. It will provide the Channel Islands multiplex with central management, finance and engineering functions. Nation’s experience launching local FM and local multiplexes in remote parts of the UK is relevant, since it faces many of the same issues that exist in the Channel Islands, particularly high costs of transmission and low population density. Our business plan includes a large number of service providers, generating additional revenue streams to minimise costs and maximise opportunities.

Catering for local tastes and interests and broadening choice

Should this application be successful, the Channel Islands will enjoy more choice per head of population than most local multiplexes in the British Isles. Considering the breadth and range of services we are proposing, we did not feel it necessary to carry out any specific audience research. The range and diversity of our services to cater for local tastes and interests is clear, with stations for young and old, LGBT+, rock and country music fans and many stations providing specific Jersey, Guernsey or wider Channel Islands content.

We are introducing the concept of commercial regional radio services across all of the Channel Islands for the first time. This is a radio tier in which Nation has existing experience and which has been a proven success of broadening choice in the UK. Given ITV Channel Islands is already a proven regional media broadcaster across the Channel Islands, we believe this is an excellent way to broaden choice whilst maintaining the individuality of existing Island-based stations. We reviewed current radio listening (RAJAR), current commercial radio output and local population data analysis to inform our proposals. Taken as a whole, our proposals will provide a platform for existing popular services and introduce a range of new services for all tastes and interests.

5 Demonstrating local demand and support

RAJAR analysis provides evidence of existing listening and identified gaps in popularity, provision or appeal. This suggested where there is demand, support and opportunity for new and additional services. We believe that our proposals will gain significant support and will provide a real incentive for listeners to buy a DAB digital radio, helping DAB become a successful broadcast platform. Our provision of a large number of local services for the Channel Islands will ensure that we receive early support from listeners.

Being fair and effective

We have established fair and transparent policies for negotiations with potential programme and additional service providers and have engaged with potential service providers in an open and non-exclusive manner. We have developed a clear pricing strategy that shows a logical and transparent split between the larger scale services that require high levels of service and the smaller, independent operators whose primary concern is cost. In gauging interest, we have spoken to operators across the radio industry: from start-ups to the largest operators in the UK.

Summary

An award of this licence to Bailiwick will ensure that the multiplex is operated by an independent radio company, committed to the industry and with the financial stability that experience brings. Our management team is well resourced, with significant digital radio experience.

We believe the Channel Islands can be a reference model for how DAB can work in small, sometimes challenging markets. Working across every tier of the radio ecology – from existing operators, community stations, new entrants and the BBC – we will deliver real choice for listeners. Nation is a proven and successful operator of local DAB multiplexes, with a track record of technical innovation to keep down costs. We believe any savings should be passed on to service providers, resulting in lower costs which, in turn, benefits consumers by making new radio services more viable to maintain.

We will bring stability, innovation and competition to the Channel Islands. We will deliver a cost effective DAB solution, collectively benefiting the stability and viability for all service providers and ensuring the long-term success of DAB digital radio in the Channel Islands. We have demonstrated fresh thinking and ambition in our programme line up and, with new ideas on contribution, encoding, multiplexing and distribution, we will deliver robust coverage across the Channel Islands at a realistic price point. This means we can deliver proven services from the BBC and existing local commercial operators alongside a host of new entrants.

Digital radio should be available at a cost that allows wide participation. Bailiwick is delighted to offer Islanders an impressive range of listening options, courtesy of our knowledge of service providers – mainstream and small scale - and to therefore provide a compelling proposition for our audience. We have used our ideas, experience and ambition to bring real choice for listeners whilst utilising the technology to deliver the Channel Islands the best possible DAB experience.

6 General information

1. Name of Applicant, Address, Telephone No. and Email Address

This must be a single legal entity: either a body corporate or a named individual person. If the former, a copy of the Certificate of Incorporation must be included with the application.

Bailiwick Broadcasting Ltd Company Number 05388776 St Hilary Transmitter, nr St Hilary, Cowbridge, Vale of Glamorgan, CF71 7DP

(Certificate of incorporation is included at the end of this application).

2. Main contact (for public purposes)

Please nominate at least one individual to deal with any press or public enquiries, stating:

Name: Ash Elford

Telephone (daytime): 029 2141 4100

Address: St Hilary Transmitter, nr St Hilary, Cowbridge, Vale of Glamorgan, CF71 7DP

E-mail address: [email protected]

3. Main contact (for Ofcom purposes)

Please nominate one individual to whom questions of clarification and/or amplification should be sent, stating:

Name: Jason Bryant

Telephone (daytime): See confidential section

Address: St Hilary Transmitter, nr St Hilary, Cowbridge, Vale of Glamorgan, CF71 7DP

E-mail address: [email protected]

7 Section 51(2)(a) and (b): Extent of proposed coverage area and timetable for coverage roll-out

4. Summary of coverage proposals

Provide a summary, fully consistent with the more detailed information about transmission sites supplied separately (see Q.6 below), of the coverage areas proposed to be achieved by the applicant’s technical plan, and an estimate of the percentage of Channel Islands households, Channel Islands major roads and/or the Channel Islands adult (aged 15+) population which will be served by this local radio multiplex service for both indoor and outdoor coverage.

We propose to launch with transmitters based in Jersey, Guernsey and Alderney. Our proposed transmitters at Les Platons, Les Touillets and Alderney will provide noise limited outdoor mobile coverage to 93.43% of roads, and noise limited indoor coverage for 81.97% of the population.

THREE TRANSMITTER NETWORK OUTDOOR COVERAGE (54DB) INDOOR COVERAGE (62DB)

Roads (m) % Covered People 15+ % Covered

Noise Limited 308,163 93.43% 111,469 81.97%

Interference Limited 304,226 92.24% 111,142 81.73%

Source: Arqiva

Our three transmission sites have been specifically selected to ensure a consistent listening experience across the Channel Islands. We submit that, for coverage completeness, it is essential to include a transmitter for Alderney from launch.

Les Platons is located at the highest point in Jersey. It is the dominant FM radio transmission site in Jersey, broadcasting BBC Radios 1 to 4 and BBC Radio Jersey. It also transmits the BBC national DAB multiplex. We will share the existing BBC national DAB antenna to ensure, as far as practicably possible, a consistent DAB experience locally. Sharing the BBC national DAB antenna will ensure there is no risk of ACI.

Les Touillets is located in Guernsey and transmits on FM both BBC Radio Guernsey and Island FM. It also transmits the BBC national DAB multiplex. We will share the existing BBC national DAB antenna to ensure as far as practicably possible, a consistent DAB experience locally. Sharing the BBC national DAB antenna will ensure there is no risk of ACI.

Alderney transmits BBC Radio Guernsey on FM. There is currently no dedicated DAB transmitter on the island. We shall use the Alderney transmitter to provide reliable DAB services to the island for the first time. There is currently no meaningful DAB coverage in Alderney from any existing DAB multiplex, therefore there shall be no ACI risk.

8 Jersey outdoor coverage – Les Platons TX

Jersey indoor coverage – Les Platons TX

9 Guernsey outdoor coverage – Les Touillets TX

Guernsey indoor coverage – Les Touillets TX

10 Alderney outdoor coverage – Alderney TX

Alderney indoor coverage – Alderney TX

11 Combined outdoor coverage – 3 TX SFN

12 Combined indoor coverage – 3 TX SFN

13 5. Timetable for coverage roll-out

Outline the timetable in accordance with which the coverage proposed at Q.4 would be achieved, and the technical means by which it would be achieved. This should also be fully consistent with the more detailed information provided in response to Q.6.

Assuming a licence award in Q4 2019, we will commence test transmissions in September 2020, followed by launch in October 2020.

Antenna Systems and Combiner

Arqiva will be the owner of all the required antenna systems. Discussions on the systems have taken place with Arqiva and we are advised that no obstacles are expected to meet the timetable for launch.

Transmitter systems

We will use transmitters from a major supplier. The supplier has confirmed they are able to meet the launch timescale.

Distribution

The link between the multiplex centre and the transmitters will be distributed on Arqiva network circuits and SHF link circuits between transmitters. Arqiva confirms that it is able to install the new infrastructure within the timescale of the transmission roll-out.

Accommodation and Power Requirements

Arqiva has confirmed that it can provide suitable accommodation and power supply.

14 6. Detailed coverage proposals

Provide, in an electronic text file, details of the technical plan, which should consist of the following components: assignment details, implementation table, and implementation data. a) The first part of the technical plan is a table of assignment details. This gives the relevant technical detail of each transmitting station which the applicant is undertaking to provide as part of its network. It will be used to enable Ofcom to estimate the coverage which will be achieved by the applicant, on a basis consistent with other applicants. It will also enable confirmation of the plan’s compliance with Ofcom’s various technical requirements. All files must be supplied in text format which is in accordance with the ITU format defined for digital sound broadcasting assignments, details of which can be found at: https://www.itu.int/en/ ITU-R/terrestrial/tpr/Documents/GE06_BS/BS-GE06_Guide.pdf

This text file is submitted in the confidential section. b) A separate table, the implementation table, should also be provided for the technical plan. This should list, for each proposed transmitter, the date of implementation promised with the parameters promised in the transmission plan, the owner/lessor of aperture space on the mast/tower, and any relevant accompanying notes. If it is proposed to introduce a transmitter with different parameters (typically lesser power or height) for an interim period, then on both lists there should be one entry for the initial assignment, and a second entry for the one which replaces it, with a note stating which transmission assignment is replaced.

TRANSMITTER LAUNCH DATE SITE MANAGER ANTENNA ERP

Les Platons Within 12 months of licence Arqiva (leasehold) Existing BBC Nation DAB antenna (four tiers of 2000W award dipoles 240° ETN, mean antenna height 55 m agl)

Les Touillets Within 12 months of licence Arqiva (freehold) Existing BBC Nation DAB antenna (two tiers of 500W award dipoles 127° ETN, mean antenna height 42.7m agl)

Alderney Within 12 months of licence Arqiva (leasehold) New DAB antenna (one tier of two yagis 240° and 250W award 60° ETN, mean antenna height 30m agl)

15 c) Each transmission assignment should also be represented by site implementation data, specific to each transmission site. This detail is intended to elicit the practicability of the technical plan. For each site name (corresponding to assignment details and implementation table): ii) If existing aerials are to be used, this needs to be stated and an explicit reference made. If not, then applicants should provide a photograph or scale diagram (or set of photographs or diagrams), showing the portion of the supporting structure on which the radiating aerials are to be mounted. Show the radiating aerials, and the aerials of other services mounted immediately above, below, and at the same level as, the radiating aerials of the applicant’s service. iii) Provide details of the location of the building in which the transmission equipment is to be housed, and confirmation that space is available for all of the equipment. This is the ‘technical plan’ referred to in Section 50(4)(b) of the 1996 Act Local Radio Multiplex Licence: Channel Islands required (or describe what modifications to buildings and infrastructure will be required, if relevant). iv) Provide confirmation from each of the relevant parties that they have seen and agreed the applicant’s proposals (to the extent that this includes new works) in respect of: o aerial mounting on the supporting structure, as proposed in the sketch diagram; o running of feeder cable from transmission system to aerial(s); o sharing of aerials and insertion/use of combiners, where relevant; o siting of transmission equipment; o supply of power; o building works (if any). The relevant party in each case, namely whoever controls the infrastructure (mast, cableways, building, power), should be named explicitly. Note: submission of this information does not imply that Ofcom will validate the design of the aerial system. The licensee will be required to adhere as far as is reasonably practicable to the antenna pattern proposed in the assignment details, and in all cases to limit the maximum radiated power in any given direction as may be required by Ofcom.

TRANSMITTER EXISTING ANTENNA BUILDING MANAGER LOCATION

Les Platons Yes Arqiva (leasehold) Existing transmission building. Space confirmed as available for transmission equipment by Arqiva.

Les Touillets Yes Arqiva (freehold) Existing transmission building. Space confirmed as available for transmission equipment by Arqiva.

Alderney No, see diagram below Arqiva (leasehold) Existing transmission building. Space confirmed as available for transmission equipment by Arqiva.

The Les Platons and Les Touillets transmitters we propose to use are already in service and transmitting the BBC national DAB multiplex. Bailiwick intends to share the BBC antenna at these sites. As these are known sites to Ofcom, we have not submitted a technical drawing or radiation pattern for these sites.

16 Below is an illustration of our proposed Alderney transmitter detailing the location of our proposed antenna.

A high resolution drawing is submitted in the confidential section.

17 The proposed antenna radiation pattern of the proposed Alderney transmitter is detailed below.

18 d) Provide the following details regarding transmission arrangements: i) Any transmission contracts that have been agreed ii) The status of these agreements.

Bailiwick has discussed its application with Arqiva and has budgeted its transmission plans against the Arqiva Reference Offer. Nation is a long standing customer of Arqiva and will conclude its contractual negotiations post licence award.

7. Other technical proposals a) Supply a network diagram, with associated tables and labels as necessary, showing in terms of functionality and (in principle) location: the source of each proposed digital sound programme service, digital additional service or television licensable content service, the point(s) of multiplexing, the point(s) of control of the elements of the multiplex (both FIC and MSC) and the distribution circuits to the transmitters. State the nature of the bearer circuit in each case, and its possible provider. b) For each of the data services proposed in Q.11(d) and Q.12, outline how compliance will be achieved with the requirement that no more than the statutory proportion of the total multiplex capacity will be devoted to non-programme related data services (see paragraphs 4.46-4.47; the figure excludes Synchronisation, MCI and SI). See also Q.19, about audio services.

The response to this question may be submitted in confidence.

We will contract with Factum Radioscape to provide encoding and multiplexing services using its Enmuxa product. This software is currently used by the operators of the Glasgow and Portsmouth Trial multiplexes.

The Enmuxa system is an upgraded version of the multiplexing currently used by the BBC and national and commercial multiplexes in the UK. It is used by commercial and public broadcasters across the world in many territories, including Australia, Thailand, Italy, Switzerland and Africa. Observa is a best-selling and compreshensive DAB+ monitoring software which is also utilised in a number of territories for public and commercial services across the world.

Individual service providers are responsible for their own contribution to the multiplex. This ensures that customers are able to obtain a level of service that is appropriate for their needs. Technical parameters, such as the FIC and MSC will be controlled by Bailiwick directly using the Enmuxa system.

Individual radio stations can supply raw audio in a variety of formats which is then encoded centrally at the Factum Radioscape Data centre in Greenwich. This is then fed in to the multiplexer and through the seamless switch is sent over a dedicated circuit to our transmitters. There is a back-up encoder and multiplex for resilience.

This approach to contribution, encoding and multiplexing enables us to keep the cost to service providers low, and enables us to be an agile operator to respond to urgent requests or issues at individual studios. Each element, from programme audio, encoding, multiplexing, transmission and SFN monitoring will be monitored using the Factum Radioscape Observa system.

19 The following diagram illustrates how audio from the studios reaches the transmitters.

Further information is supplied in the confidential section.

To reflect the relatively small population served by the multiplex and to keep costs sustainable, we are proposing to have a dedicated circuit connecting the Factum Radioscape Data centre in Greenwich to the Les Platons transmitter. It will then be fed separately to the Les Touillets and Alderney transmitters through SHF wireless links.

20 b) For each of the data services proposed in Q.11(d) and Q.12, outline how compliance will be achieved with the requirement that no more than the statutory proportion of the total multiplex capacity will be devoted to non-programme related data services (see paragraphs 4.46-4.47; the figure excludes Synchronisation, MCI and SI). See also Q.19, about audio services.

The response to this question may be submitted in confidence.

The overwhelming use of capacity on our multiplex will be for audio services. We will broadcast an 8kbps data service featuring an EPG and receiver logos. This data service will account for 0.7% of all useable capacity on the multiplex. We do not foresee any requirement for the provision of any other standalone data services, but if there were to be any, we would notify Ofcom.

The XPAD of each service is set using the Enmuxa system. Typically the size is 0.4kbps for DAB+ services and 1.9kbps for standard DAB services. Although it is possible to increase the size of the XPAD, we do not anticipate doing so.

21 Section 51(2)(b): Timetable for commencement of services

8. Commencement of services

If it is envisaged that any of the digital sound programme services or their related ancillary services will not begin broadcasting from the start of the radio multiplex licence period, provide details of which service(s) will not commence from the launch of the radio multiplex service, the reason(s) for this, and an indication of the expected timescale for the commencement of the service(s).

All services are expected to commence broadcasting from the start of the licence period.

22 Section 51(2)(c): Ability to establish and maintain proposed service

9. Ownership and control of company which will hold the licence

(a) Board of Directors i) Provide the name, occupation, other directorships, other media interests, background and relevant media experience of each director (executive and nonexecutive), including the proposed chairperson.

Jason Bryant

Executive Chairman Nation Broadcasting

Other Directorships: Nation Radio Ltd, Haven FM (Pembrokeshire) Ltd, Radio Carmarthenshire Ltd, Nation Broadcasting Ltd, Radio Ceredigion Ltd, Bridge FM Radio Ltd, Swansea Bay Radio Ltd, MuxCo Northeast Wales and West Cheshire Ltd, MuxCo Wales Ltd, MuxCo North Wales Ltd, Muxco Suffolk Ltd, Digital Broadcast Technologies Ltd, Radioscape Ltd, Nation Resources Ltd, Nation Digital Media Ltd, Sun FM Limited, Nation Radio Scotland, Limited, Ipswich 102 Ltd, Nation Radio Investments Ltd, Brave Broadcasting Ltd, Nation Broadcasting Investments Ltd, Nation Broadcasting Investments (South) Ltd, Nation Broadcasting Investments (East) Ltd, Thames Radio Ltd, Country Broadcasting Ltd, Dragon Radio Ltd.

Jason’s radio career spans BBC and commercial, local and national, speech and music. He was Programme Director at talkRADIO, launch Managing Director at talkSPORT and Development Director at Virgin Radio. In 2001 Jason established Town and Country Broadcasting - later rebranded Nation Broadcasting – which has grown into one of the UK’s leading commercial radio businesses with operations across England, Scotland and Wales.

Nation is a significant owner/operator of DAB multiplexes, with wholly owned local multiplex licences in Mid & West Wales and North Wales and further shareholdings in the North East Wales & West Cheshire multiplex and Suffolk. Nation also owns Glasgow’s trial city multiplex. Nation is adept at running multiplexes in some of the British Isles’ more challenging locations, where transmission is a significant cost of business.

Nation has a strong track record of profitability and a strategy of sustainable growth through licence wins and acquisition. Recently, Nation identified a number of DAB development areas, including the Channel Islands, where it could provide increased choice and value to service providers.

Jason has been involved in DAB digital radio since launching talkSPORT on the first national multiplex twenty years ago. In that period, he has established, launched and maintained a number of DAB multiplex licences including London 2, London 3, Central Scotland, Aberdeen, North Wales, Wrexham and Chester, Suffolk and South West Wales.

23 Ash Elford

DAB Platform Manager Nation Broadcasting

Other Directorships: None

Ash is highly experienced in multiplex management, operations and establishment. He joined Nation as its DAB Platform Manager in 2018, with a view to increasing its involvement in multiplex operations across the British Isles.

Ash has recently transformed the Glasgow Small Scale DAB multiplex with new services, improved coverage, improved reliability and a marked improvement in customer service following Nation’s acquisition of the licence in 2018.

Ash also acts as Digital Development Manager for long established community station Angel Radio, where he has overseen improvements to the distribution of the station on FM, DAB and online. Ash also runs the Portsmouth Small Scale DAB multiplex, arguably one of the most diverse and cost effective DAB multiplexes in the UK.

Ash worked for GCap Media/Global Radio and Arqiva as DAB Operations Executive for four years, combining managing the day to day operations of their local DAB digital radio multiplexes. Although predominantly involved with NOW Digital, he has had responsibility for a total of 27 multiplexes during his career, included those operated by Digital Radio Group and MXR. Ash was responsible for overseeing the day to day operations of NOW Digital, managing contractors, third party shareholders, customers and attracting new business.

Ash was responsible for ensuring multiplex and DSPS licence compliance with Ofcom, and attended Ofcom DAB industry planning meetings. Ash has maintained relationships with larger radio groups, and importantly, smaller scale services, both commercial and community.

24 Martin Mumford

Group Managing Director Nation Broadcasting

Other Directorships: Country Broadcasting Ltd, Radioscape Ltd

Martin has worked in commercial radio for over 20 years, managing stations through launch, early development and turnaround.

Martin has a broad operational skillset including programming, finance, scheduling, sales, HR and engineering.

Over the past decade, Martin has overseen the launch, acquisition and integration of new businesses into the group and is responsible for the daily oversight and operation of Nation.

Martin will ensure Bailiwick launches on time and on budget and that it is well placed to take advantage of the group’s wider infrastructure.

ii) If there are firm plans to appoint any further directors, provide information (with details of any specific individuals in mind). This information may be submitted in confidence.

There are no plans to appoint any further directors.

(b) Proposed Investors and Shareholding Structure

Full details of the proposed shareholding structure should be provided, including: i) Names and addresses (the latter may be submitted in confidence) of all existing or proposed shareholders.

Bailiwick Broadcasting is a 100% subsidiary of Nation Broadcasting Ltd. ii) Total number, class/classes of shares and issue price of shares (specify voting, non-voting, preference, other etc.).

100 £1 ordinary shares issued at par. iii) All voting shareholders and holders of 5% or more of non-voting shares and loan stock should be named. State the number, class/classes and price of shares to be issued to each investor.

Nation is the ultimate parent company.

25 iv) Outline any shareholders agreements or arrangements which exist.

Not applicable. v) Where a corporate body other than a current Ofcom licensee will be providing 30% or more of the required funding, details should be given of its directors and main shareholders, and of its activities.

Not applicable. vi) Where the applicant is an existing company or subsidiary of an existing company, the applicant should provide the last three years’ statutory accounts and management accounts for the last financial year for the applicant and/or the parent company.

Bailiwick is a non-trading company. The company has been used previously, under different names, for a number of Ofcom licence applications. vii) Ofcom may request additional information (e.g. a banker’s letter, statutory/management accounts) regarding the shareholders, or any other providers of finance, listed in the application.

We are happy to provide any information as requested by Ofcom.

Details are required of the involvement by the applicant and its participants (including shareholders or other subscribers of more than 5% of the applicant’s total funding requirements) in any of the activities listed below, and the extent of the interest. For these purposes, the applicant includes associates of the applicant (i.e. directors and their associates and other group companies). i) Advertising agencies;

None ii) Newspapers;

None

26 iii) Other broadcasting interests; % Swansea Bay Radio Ltd 100 Radio Ceredigion Ltd 100 Nation Radio Ltd 100 Haven FM (Pembrokeshire) Ltd 100 Radio Carmarthenshire Ltd 100 Bridge FM Radio Ltd 100 Sun FM Limited 100 Nation Radio Scotland Limited 100 Nation Broadcasting Investments (South) Ltd 100 Nation Broadcasting Investments (East) Ltd 100 Thames Radio Ltd 100 Country Broadcasting Ltd 75 Dragon Radio Ltd 100 MuxCo North East Wales and West Cheshire Ltd 33 MuxCo Wales Ltd 100 MuxCo North Wales Ltd 100 MuxCo Suffolk Ltd 33 Nation Digital Investments Ltd 100 Nation Radio Investments Ltd 100

Jason Bryant holds a 40% interest in Ipswich 102 Ltd, the recently launched FM commercial radio station for Ipswich. iv) Bodies whose objects are wholly or mainly of a religious nature;

None v) Bodies whose objects are wholly or mainly of a political nature;

None vi) Local authorities;

None vii) Other publicly-funded bodies.

None

* Applicants should note that this information is required for the purposes of checking compliance with the ownership rules, and is not relevant to an applicant’s ability to establish and maintain its proposed service. If none of the categories above apply to the application this should be clearly stated.

27 10. Financial and business plan

(a) Overall Financial Strategy

Explain how the applicant considers it is able to establish and maintain, throughout the licence period, its proposed service. This explanation should include an assessment of each of the following, but is not restricted to these factors: i) The network construction phase ii) The operational start-up phase iii) Marketing iv) Ongoing operation of the service

Our Strategy

Launching, establishing and maintaining a DAB multiplex requires technical competence, operational expertise, financial stability and experience of managing third party relationships.

Our experience as multiplex operators and service providers demonstrates these capabilities and give us an excellent understanding of what is required in the Channel Islands – namely, good coverage, reliability and access for programme services at a realistic price.

Bailiwick’s directors have been involved in DAB digital radio strategies at some of the UK’s biggest national services to the most innovative of small scale services on the recent trial multiplexes. Nation has launched a number of local DAB multiplexes across the UK.

Following its acquisition of the trial multiplex licence in Glasgow last year, Nation developed a strategy to invest in local multiplexes where it could add expertise and value, often working on more technically advanced and IP based operating models than existing operators. Our model allows us to offer the benefits of DAB to a greater range of service providers than has hitherto been possible on the majority of local DAB multiplexes.

Our strategy in the Channel Islands is to become the Islands’ leading platform and creative hub, providing choice of listening and opportunity for all. As an independent operator, we believe that we are best placed to deliver an optimum mix of greater choice for listeners and local businesses, with stability at a fair price for the Islands’ BBC and commercial radio broadcasters and introduce new opportunities for broadcasters in the Channel Islands.

Our key strategic plans are to:

• Establish a successful and efficient business for stakeholders and shareholders. • Provide a cost effective DAB platform for all services. • Provide a cost effective platform for local analogue services to simulcast their services. • Provide increased competition of services and plurality of ownership on the Channel Islands. • Offer pricing that allows new services to flourish, broadening choice and providing new commercial opportunities for local businesses.

We will work with stakeholders on each of the Islands, including broadcasters and Government agencies such as Digital Jersey, the economic development agency and industry association, to bring together an exciting and successful launch campaign across the Channel Islands.

28 The Business Plan

The key objectives underlying the Bailiwick business plan are:

• To operate a cost effective multiplex that offers a wide choice of programme services, serves local tastes and interests, broadens choice and increases plurality. • To maximise take-up of digital radio receivers in the channel Islands by working with our service providers and industry bodies such as Digital Radio UK. • To market and promote the multiplex via local radio, ITV Channel Islands and local press. • To operate in a manner ensuring fair and effective competition. • To operate a sound and viable financial business, with a large number of confirmed service providers, supporting the long term success of our proposals.

Bailiwick is well resourced, technically and financially to support the needs of its programme service providers.

We have reviewed the broadcasting ecology in the Islands and note the continued high levels of profitability of the existing commercial stations. To date, these stations have not had any direct competition. We believe it is in the interests of listeners and local businesses to be able to access a range of new services from a host of new owners and operators. The relative wealth and prosperity of Jersey and Guernsey, allow us to be confident that there is room for new stations to invest, grow and innovate.

Our Board of Directors is responsible for the company’s overall business strategy, including monitoring and reviewing trading performance, pricing and compliance. Ash Elford will provide day to day Multiplex Management including liaison and contracting with service providers. Any changes and requirements from the service providers will be dealt with promptly and efficiently.

(i) The network construction phase

There are three stages to the network construction phase – planning, building and testing.

Planning – the design of our transmission plan has taken into account the requirements of service providers, including the BBC and commercial services, to ensure the best possible coverage and that key population centres and roads are covered. Arqiva has provided support during this stage and will liaise with Ofcom for transmission matters on behalf of Bailiwick.

Building & testing – Following award, we will work with Arqiva to finalise our transmission plan and prepare for key milestones through to launch, whilst Factum Radioscape will be our partner for all of our multiplexing, encoding and monitoring requirements.

29 (ii) The operational start-up phase

This phase includes concluding negotiations with Arqiva for transmission, contracting with service providers, monitoring the installation of multiplex equipment at service providers’ studios (if required) ) or monitoring service providers webstreams and ensuring that necessary testing is undertaken prior to launch. We will also liaise with Ofcom over the build process and ensure the necessary regulatory administration and compliance, including the issuing of DSP licences. We will liaise with Digital Radio UK and service providers on marketing activity, including ensuring the postcode checker is up to date with the new coverage and service information.

(iii) Marketing

As a new broadcast platform, a significant marketing campaign will be undertaken to amplify our launch and to inform local listeners of the benefits of DAB. We have allocated a marketing budget to the project throughout the license term. Experience in the UK suggests that consistent marketing activity is an important factor in driving device take-up.

We will work with a local marketing agency on the Channel Islands to spend this budget across ITV Channel Television, Channel 103, Island FM, Jersey Evening Post, Guernsey Press, Bailiwick Express, on outdoor media and also with relevant social media channels. ITV Channel Television is very important in this mix, reaching 86% of people in the Channel Islands each month.

More generally, we will work closely with Digital Radio UK to continue to support the industry-wide promotion of digital radio. Whilst consumers need to drive the take up, awareness of the new platform and the choice it offers, needs to be across all media.

We will develop our own website – bailiwickbroadcasting.com - to be a conduit of information between us and our service providers, and also to educate and inform listeners, advertisers and equipment retailers. We will liaise closely with our service providers, the Islands’ commercial services and the BBC local services.

We will work with local agencies and form new partnerships and relationships. We will join Jersey Digital, which acts as a central contact for anyone connected with the digital sector including digital entrepreneurs, media and those looking to test or establish a digital business in Jersey. CEO Tony Moretta, worked with Jason Bryant on a bid for the second UK national DAB multiplex in 2007. We will work with the Digital Greenhouse on Guernsey, established by the States of Guernsey to act as a focal point for the growth of the digital and creative sector.

Networking and collaboration are strong themes for economic success on the Islands and we will fully immerse ourselves in these initiatives to integrate Bailiwick into the communities it serves.

Service providers will be encouraged to undertake their own brand marketing and social media activity highlighting their appearance on DAB on the Channel Islands. We will work with service providers, particularly the existing commercial and BBC analogue services, to promote DAB digital radio and encourage trial.

30 (iv) Ongoing operation of the service

Ash Elford, Nation’s DAB multiplex platform manager, will be responsible for the launch of the multiplex and its subsequent day to day operation; in particular:

• Overseeing bit rate variations, enhancements or projects required by service providers, such as EPG provision, temporary services and data developments. • Working with service providers and the transmission subcontractor to maximise multiplex functionality and efficiency. • Monitoring and fault reporting, ensuring that the output of all service providers is correctly logged and compliant with legislation and codes. • Developing new revenue streams.

We will oversee any multiplex re-configurations and these will be undertaken in line with our policies and contractual agreements with service providers.

Nation will provide ongoing financial management for the multiplex from its UK headquarters, including purchase and sales ledgers, IT, secretarial, legal, research, marketing coordination and technical support. Nation’s head office team provides similar for its multiplexes in Wales and Scotland.

(b) Funding

Detail the sources of finance that will be used to fund the licence, under the following headings.

SOURCE OF FINANCE £

Share capital 100

Working capital loan from parent company 100,000

Leasing/HP facilities (capital value) 0

Bank overdraft 0

Grants and donations 0

Other 0

Total 100,100

Applicants should provide evidence that sufficient funds are available to each investing shareholder to cover their proposed investments.

See confidential section.

For incorporated investing shareholders, applicants should provide a copy of the most recent statutory accounts.

See confidential section.

31 Where relevant, provide information on: i) Loan terms (e.g. interest rate, repayment terms, redemption/conversion terms); ii) Assets leased.

The parent company will provide a working capital loan of up to £100,000 at 0% interest to Bailiwick. We anticipate this loan being repaid within 3 years, further funding is available if required as submitted in the confidential section.

All of the funding identified above should be confirmed to the applicant. If any funding has not been confirmed, or if there are any pre-conditions that have not yet been met that need to be met before the funding is released to the applicant, provide an explanation of what needs to be done, the dates by which it needs to be carried out, and any steps the applicant needs to take to ensure the funding is confirmed and/or released.

All funding is confirmed in line with funding letters submitted in the confidential section.

The purpose of this question is to allow the applicant to demonstrate its understanding of the market. The forecasts should be based on reasonable assumptions that are logically applied and justifiable.

A letter should be provided from a firm of authorised UK accountants, addressed to the board of directors of the applicant, confirming that, in their opinion: a) The projections contained in the financial model have been properly and accurately compiled on the basis of the assumptions listed and explanatory notes accompanying the projections b) That the policies adopted follow generally accepted UK accounting standards c) Such accounting policies have been properly and consistently applied. The applicant should provide financial projections for the pre-operational period and on an annual basis for the subsequent 12-year licence period.

The projections must include: i) Profit and loss accounts ii) Balance sheets iii) Cash-flow forecasts iv) Appropriate supporting schedules

The forecasts should be supplied on an Excel spread-sheet or similar and guidance notes should be provided. The applicant must also complete and submit the spreadsheet entitled “Financial Template for DAB Local Radio Multiplex Licence Applications” at: http://licensing. ofcom.org.uk/radio-broadcast-licensing/digital-radio/awards0708/ using information from its business model. Guidance notes for completion of the Template can be found in Annex 2 to this Notice. This section must include a full listing of the underlying assumptions on which the financial projections are based.

32 The application should detail how revenue figures were derived, distinguishing between: i) Access fees ii) Fees based on audience or revenue shares iii) Other fees (please specify)

Revenue forecasts should also distinguish between digital sound programme, digital additional and television licensable content services.

The application should clearly set out the fee structure for each service provider, and explain the reasons for any differences in fees paid between providers. Where the applicant expects to receive fees based on audience or revenue shares of the services carried on the multiplex, forecasts of the audiences and revenues of those services should be provided.

Our response is submitted in the confidential section.

(d) Risks

The financial information submitted by applicants should demonstrate that the business plan has sufficient resilience for the service to be maintained despite adverse movements in revenues and costs arising from more difficult trading conditions than expected. The business plan must therefore: i) Incorporate a set of sensitivity tests, and; ii) Provide details of the main operational and financial risks to the business plan and explain how the applicant proposes to address these risks.

Our response is submitted in the confidential section.

33 Section 51(2)(d): Catering for local tastes and interests

11. Proposed local digital sound programme services a) Provide, for each local digital sound programme service for which capacity is to be allocated, a description of the service. This description should encapsulate the nature and characteristics of the proposed service (e.g. type(s) of music and speech to be provided, target audience, etc.). The number of hours each day that the service will be broadcast must also be included. These service descriptions will form part of the licence. Therefore, questions of clarification may be asked prior to licence award and the wording amended to reflect this, if necessary. b) Outline the expected target audience of each local digital sound programme service to be accommodated on the multiplex, in terms of demographic profile (i.e. age-range, gender, socio-economic background), ethnic composition, and/or any other relevant characteristics. To what extent will each of these services cater for local tastes and interests, general or particular? c) If agreement has been reached (either firmly or provisionally; state which) with particular providers of some or all of the local digital sound programme services to be accommodated on the multiplex, identify these programme providers. For each one, state whether it has already been issued by Ofcom with a licence to provide a local digital sound programme service. Details of any arrangements with particular providers which the applicant considers to be commercially sensitive may be submitted in confidence.

Our services cater for the widest possible range of tastes and interests. The core characteristics of our line-up provide for a vast expansion in terrestrial local content for the Channel Islands and will see the introduction of a host of brands that are already available to listeners in the UK.

They include services for:

• Listeners interested in local content including news and information, with at least six services providing for this requirement. • Services for existing listeners to BBC Radio Jersey FM and BBC Radio Guernsey FM from the BBC, using their reserved capacity. • For those interested in coverage of the States of Deliberation in Guernsey and the Assembly in Jersey from the BBC, using their reserved capacity. • Those interested in specialist music services such as Country, Rock, Melodic Hits and Oldies. • New services, providing further competition for listeners and local advertisers. • Services targeting the broadest possible age range from the youngest to the oldest.

34 SERVICE 1: Local commercial - Guernsey

Station ID Island FM/TBC

Provider Island FM Ltd or Nation a) Description and hours of broadcast A broad music and localised service for Guernsey. 24/7. b) Expected target audience. To what extent will each of these Island FM is the current commercial station for Guernsey. services cater for local tastes and interests, general or particular? Listening figures show that of a population of 53,000 adults, 31,000 listen each week, at an average of 11.6 hours per person giving a 37% market share. Island FM’s core audience is 35- 54 year olds. Overall, it serves a broad audience aged 15+.This service clearly caters for local tastes and interests with its local focus and is readily distinctive, with no other service being purely local for Guernsey. c) If agreement has been reached (either firmly or provisionally; This service will be offered initially to the existing analogue state which) with particular providers of some or all of the local licensee. digital sound programme services to be accommodated on the multiplex, identify these programme providers. Should Island FM not take up capacity an alternative service will be operated by Nation. Nation holds a number of DSPS licenses within its group.

SERVICE 2: Local commercial - Jersey

Station ID Channel 103/TBC

Provider Channel 103 Ltd or Nation a) Description and hours of broadcast A broad music and localised service for Jersey. 24/7. b) Expected target audience. To what extent will each of these Channel 103 is the current commercial station for Jersey. services cater for local tastes and interests, general or particular? Listening figures show that out of a population of 89,000 adults, 47,000 listened each week to Channel 103, at an average of 10.8 hours per person giving a 35% market share. Its core audience is 25-54 year olds, with its largest being 25-34. Overall, it serves a broad audience aged 15+. This service clearly caters for local tastes and interests with its local focus and is readily distinctive, with no other service being purely local for Jersey. c) If agreement has been reached (either firmly or provisionally; This service will initially be offered to the existing analogue state which) with particular providers of some or all of the local licensee. digital sound programme services to be accommodated on the multiplex, identify these programme providers. Should Channel 103 not take up capacity an alternative service will be operated by Nation. Nation holds a number of DSPS licenses within its group.

35 SERVICE 3: Channel Islands Regional - Broad Music

Station ID Crown Radio

Provider Nation Broadcasting Ltd a) Description and hours of broadcast A broad music mix from the 70s to today and local news and information for the Channel Islands. 24/7. b) Expected target audience. To what extent will each of these This service will target a core audience aged 15+ with a broad services cater for local tastes and interests, general or particular? music mix of appeal to all age groups across the Crown dependencies. This service is clearly distinctive and will cater for general local tastes and interests with its regional content for the Channel Islands. No other service is a broad music service for the Channel Islands and targeting a wide 15+ local audience with local news and information for the Channel Islands. ITV already serves the Channel Island Region and proved it is a viable new region for larger services. c) If agreement has been reached (either firmly or provisionally; Agreement has been reached with Nation. Nation hold a number state which) with particular providers of some or all of the local of DSPS licenses within its group. digital sound programme services to be accommodated on the multiplex, identify these programme providers.

SERVICE 4: Channel Islands Regional - 80s Music

Station ID Crown 80s

Provider Nation Broadcasting Ltd a) Description and hours of broadcast An 80s music and local information service for the Channel Islands. 24/7. b) Expected target audience. To what extent will each of these This service will target a core audience aged 35-64. It will cater services cater for local tastes and interests, general or particular? for their tastes and interests with a distinctive music mix and with its local content for the Channel Islands. No other service consists entirely 80s music for the whole of the Channel Islands. ITV already serves the Channel Island Region and proved it is a viable new region for larger radio services.

c) If agreement has been reached (either firmly or provisionally; Agreement has been reached with Nation. Nation hold a number state which) with particular providers of some or all of the local of DSPS licenses within its group. digital sound programme services to be accommodated on the multiplex, identify these programme providers.

36 SERVICE 5: Channel Islands Regional - Rock

Station ID Crown Rock

Provider Nation Broadcasting Ltd a) Description and hours of broadcast A rock music and local information service for the Channel Islands. 24/7. b) Expected target audience. To what extent will each of these This service will target an audience of rock music fans on the services cater for local tastes and interests, general or particular? Channel Islands aged 15+. It is expected that this audience will be male led and we anticipate this to be roughly 65:35 male to female based on the performance of similar UK rock services.

This service will clearly cater for the tastes and interests of local rock fans and it is clearly distinctive, with no other service being a rock based music service with local news and information for the whole of the Channel Islands. ITV already serves the Channel Island Region and proved it is a viable new region for larger radio services. c) If agreement has been reached (either firmly or provisionally; Agreement has been reached with Nation. Nation hold a number state which) with particular providers of some or all of the local of DSPS licenses within its group. digital sound programme services to be accommodated on the multiplex, identify these programme providers.

SERVICE 6: Channel Islands Regional - Easy

Station ID Crown Easy

Provider Nation Broadcasting Ltd a) Description and hours of broadcast An easy listening music and local information service for the Channel Islands. 24/7. b) Expected target audience. To what extent will each of these This service will target a core audience aged 45+. services cater for local tastes and interests, general or particular? This service caters for a generally older audience who enjoy easy listening music. It will meet local tastes and interests also with its local news and information for the Channel Islands.

This is clearly distinctive, with no other service being an easy listening music service for the whole of the Channel Islands with localised content. ITV already serves the Channel Island Region – a viable new region for larger radio services. c) If agreement has been reached (either firmly or provisionally; Agreement has been reached with Nation. Nation hold a number state which) with particular providers of some or all of the local of DSPS licenses within its group. digital sound programme services to be accommodated on the multiplex, identify these programme providers.

37 SERVICE 7: Country Music

Station ID Chris Country Radio

Provider Country Broadcasting Ltd a) Description and hours of broadcast A country music service. 24/7. b) Expected target audience. To what extent will each of these This service will target and serve the tastes and interests of services cater for local tastes and interests, general or particular? a broad audience of country music fans aged 15+. It is clearly distinctive, with no other service being a service for country music fans for the whole of the Channel Islands.

c) If agreement has been reached (either firmly or provisionally; Agreement has been reached with Country Broadcasting Ltd, an state which) with particular providers of some or all of the local existing DSPS licensee. digital sound programme services to be accommodated on the multiplex, identify these programme providers.

SERVICE 8: News and Information

Station ID News Radio UK

Provider News RadioUK Ltd a) Description and hours of broadcast A news and information station for the British Isles. 24/7. b) Expected target audience. To what extent will each of these This service will appeal to a broad audience of those interested services cater for local tastes and interests, general or particular? in news and information aged 15+.

This service is clearly distinctive, and will serve the tastes and interests of those wanting to hear the latest news and information for the British Isles. No other service on the local multiplex offers a news and information service.

c) If agreement has been reached (either firmly or provisionally; Agreement has been reached with News RadioUK Ltd, an state which) with particular providers of some or all of the local existing DSPS licensee. digital sound programme services to be accommodated on the multiplex, identify these programme providers.

38 SERVICE 9: Local Community - Alderney

Station ID Community Radio

Provider Alderney Broadcasting Co. Ltd and/or others a) Description and hours of broadcast A local community service for the Channel Islands community radio. 24/7. b) Expected target audience. To what extent will each of these This will target a broad audience aged 15+. If further community services cater for local tastes and interests, general or particular? radio stations are licensed by Ofcom they may also obtain a presence on this channel.

This service has specific appeal to listeners of community radio and will cater for their tastes and interests. It is clearly distinctive, with no other service catering for the needs of community radio listeners on the Channel Islands. c) If agreement has been reached (either firmly or provisionally; At the time of application submission we were unable to obtain state which) with particular providers of some or all of the local firm agreement with Quay FM, although we have discussed our digital sound programme services to be accommodated on the plans with them. They are not an existing DSPS licensee. multiplex, identify these programme providers.

SERVICE 10: Album Tracks

Station ID Radio Caroline

Provider Peter Moore a) Description and hours of broadcast A radio service celebrating the best of album music from the past to present day. 24/7. b) Expected target audience. To what extent will each of these This service will target a core audience aged 15+ services cater for local tastes and interests, general or particular? This service caters for listeners with a love and passion for album based music and the service is clearly distinctive, with no other service being an album based music service.

c) If agreement has been reached (either firmly or provisionally; Firm agreement has been reached with Peter Moore. Peter state which) with particular providers of some or all of the local Moore t/a Radio Caroline is an existing DSPS licensee. digital sound programme services to be accommodated on the multiplex, identify these programme providers.

39 SERVICE 11: Tourist Information

Station ID Visitor Radio

Provider Visitor Radio Ltd a) Description and hours of broadcast Tourist information for people visiting the Channel Islands. 24/7. b) Expected target audience. To what extent will each of these This service will target a core audience aged 15+ services cater for local tastes and interests, general or particular? This will cater for those interested in the Channel Islands as a holiday destination and the service is clearly distinctive, with no other service offering local information targeted at visitors to the Channel Islands.

c) If agreement has been reached (either firmly or provisionally; Agreement has been reached with Visitor Radio Ltd. It is an state which) with particular providers of some or all of the local existing DSPS licensee. digital sound programme services to be accommodated on the multiplex, identify these programme providers.

SERVICE 12: Oldies

Station ID Angel Radio

Provider Angel Radio Ltd a) Description and hours of broadcast A nostalgia service featuring music from the 1900s to 1960s. 24/7 b) Expected target audience. To what extent will each of these This service will target a core audience aged 60+ services cater for local tastes and interests, general or particular? This service is clearly distinctive, with no other service offering a music service aimed at this age group. It will appeal to the tastes and interests of older listeners aged 60+ in the Channel Islands.

c) If agreement has been reached (either firmly or provisionally; Agreement has been reached with Angel Radio Ltd. It is an state which) with particular providers of some or all of the local existing DSPS licensee. digital sound programme services to be accommodated on the multiplex, identify these programme providers.

40 SERVICE 13: Children

Station ID Little Radio

Provider Little Radio Ltd a) Description and hours of broadcast A service of appeal to children. 24/7. b) Expected target audience. To what extent will each of these This service will target a core audience aged under 5 and their services cater for local tastes and interests, general or particular? parents.

This service will appeal because of its unique music and storytelling content. It is clearly distinctive, with no other service offering a children’s based service to the Channel Islands.

c) If agreement has been reached (either firmly or provisionally; Agreement has been reached with Little Radio Ltd. It is not an state which) with particular providers of some or all of the local existing DSPS licensee. digital sound programme services to be accommodated on the multiplex, identify these programme providers.

SERVICE 14: Classic Pop Hits

Station ID Bailiwick Radio Classics

Provider Lighthouse Media (CI) Ltd a) Description and hours of broadcast Classic pop hits for the Channel Islands. 24/7. b) Expected target audience. To what extent will each of these This service will target a core audience aged 35+ services cater for local tastes and interests, general or particular? This service is clearly distinctive, and will appeal to local tastes and interests with its localised content and classic hits format. No other service offers this mix of classic hits and localised information for the Channel Islands.

c) If agreement has been reached (either firmly or provisionally; Agreement has been reached with Lighthouse Media (CI) Ltd. It state which) with particular providers of some or all of the local is not an existing DSPS licensee. digital sound programme services to be accommodated on the multiplex, identify these programme providers.

41 SERVICE 15: Hot Adult Contemporary

Station ID Bailiwick Radio Hits

Provider Lighthouse Media (CI) Ltd a) Description and hours of broadcast Upbeat pop music for the Channel Islands. 24/7. b) Expected target audience. To what extent will each of these This service will target a core audience aged 15-34. services cater for local tastes and interests, general or particular? This service will serve local tastes and interests with a hot adult contemporary format. It is clearly distinctive, with no other service offering news and local information for visitors to the Channel Islands with this music mix.

SERVICE 16: Chill-Out

Station ID Skylab Radio

Provider Skylab Radio Ltd a) Description and hours of broadcast A service of chill-out / relaxing mood music. Skylab Radio will not have fixed hours, it will operate when the BBC Radio Guern- sey AM channel is not broadcasting. We anticipate the broadcast hours of Skylab Radio will be at a minimum 18:00 to 09:00, although on days when The States of Deliberation does not sit, it will broadcast 24 hours per day. b) Expected target audience. To what extent will each of these This service will target a core audience aged 15+ services cater for local tastes and interests, general or particular? This service will cater for those looking for a chilled music station. It is clearly distinctive, with no other service offering such a music mix. c) If agreement has been reached (either firmly or provisionally; Agreement has been reached with Skylab Radio Ltd. It is an state which) with particular providers of some or all of the local existing DSPS licensee. digital sound programme services to be accommodated on the multiplex, identify these programme providers.

42 SERVICE 17: Access

Station ID Access Radio

Provider Various a) Description and hours of broadcast An access radio channel for small broadcasters. Access Radio will not have fixed hours, it will operate when the BBC Radio Jersey AM channel is not broadcasting. We anticipate the broadcast hours of Access Radio will be at a minimum 18:00 to 09:00, although on days when The States Assembly does not sit, it will broadcast 24 hours per day. b) Expected target audience. To what extent will each of these This service will target a broad audience aged 15+ services cater for local tastes and interests, general or particular? This service is clearly distinctive, with no other service offering access to small broadcasters on the Channel Islands. Local content will see it appeal to local tastes and interests. c) If agreement has been reached (either firmly or provisionally; No agreements have yet been made for this channel. It is state which) with particular providers of some or all of the local expected we will make this channel available to local hospital digital sound programme services to be accommodated on the radio and community services and also to local podcasters. multiplex, identify these programme providers.

SERVICE 18: Adult Contemporary

Station ID Confidential

Provider Confidential a) Description and hours of broadcast A mainstream adult contemporary formatted music service for adults aged 25 to 44. 24/7. b) Expected target audience. To what extent will each of these This service will target a core audience aged 25-44. services cater for local tastes and interests, general or particular? This service will appeal to those looking for an upbeat adult contemporary service. It is clearly distinctive, with no other service offering a pure Adult Contemporary service.

c) If agreement has been reached (either firmly or provisionally; Firm agreement has been reached, subject to contract, with an state which) with particular providers of some or all of the local established broadcaster for this service. They are an existing digital sound programme services to be accommodated on the DSPS licensee. Full details are in the confidential appendix. multiplex, identify these programme providers.

43 SERVICE 19: Contemporary Hit Radio

Station ID Confidential

Provider Confidential a) Description and hours of broadcast A mainstream hit music formatted service for the under 30s. 24/7. b) Expected target audience. To what extent will each of these This service will target a core audience aged under 30. services cater for local tastes and interests, general or particular? This service caters for those listeners looking for a pure hit music station. It is clearly distinctive, being the youngest targeted music format and with no local content.

SERVICE 20: Melodic Hits

Station ID Confidential

Provider Confidential a) Description and hours of broadcast A service playing melodic pop hits aimed at the over 50s. 24/7. b) Expected target audience. To what extent will each of these This service will target a core audience aged 50+ services cater for local tastes and interests, general or particular? This service will cater to those looking for a melodic pop service. It is clearly distinctive, with no other service offering a pure service of melodic popular hits, with no local content.

44 SERVICE 21: Guernsey Parliament

Station ID BBC Radio Guernsey AM

Provider BBC a) Description and hours of broadcast States of Deliberation Coverage. BBC Radio Guernsey AM will not have fixed hours, it will operate as required by the BBC. Some days it may not broadcast at all. When the channel is required, we expect as a maximum its broadcast hours will be 09:00 to 18:00 b) Expected target audience. To what extent will each of these This service will target a broad audience aged 15+ services cater for local tastes and interests, general or particular? This service is clearly distinctive, with no other service offering coverage of the Guernsey States of Deliberation.

c) If agreement has been reached (either firmly or provisionally; Agreement has been reached with the BBC. state which) with particular providers of some or all of the local digital sound programme services to be accommodated on the multiplex, identify these programme providers.

SERVICE 22: Jersey Assembly

Station ID BBC Radio Jersey AM

Provider BBC a) Description and hours of broadcast Assembly coverage. BBC Radio Jersey AM will not have fixed hours, it will operate as required by the BBC. Some days it may not broadcast at all. When the channel is required, we expect as a maximum its broadcast hours will be 09:00 to 18:00 b) Expected target audience. To what extent will each of these This service will target a broad audience aged 15+ services cater for local tastes and interests, general or particular? This service is clearly distinctive, with no other service offering coverage of the Jersey Assembly. It will cater for those interested in coverage of local affairs.

45 SERVICE 23: LGBT+

Station ID Gaydio

Provider Gaydio CIC a) Description and hours of broadcast A service of interest to the LGBT+ community. 24/7. b) Expected target audience. To what extent will each of these This service will target a core audience aged under 30. services cater for local tastes and interests, general or particular? This service caters for those listeners interested in or interested in the LGBT community. With targeted music, news and information, it is clearly distinctive, being a specific service for a specific audience.

c) If agreement has been reached (either firmly or provisionally; Agreement has been reached with Gaydio CIC. It is an existing state which) with particular providers of some or all of the local DSPS licensee. digital sound programme services to be accommodated on the multiplex, identify these programme providers.

46 Summary

The following graphs summarise and demonstrate the target audiences and demographic make-up of the proposed services in our Channel Islands multiplex.

47 d) Give details of any programme-related ‘data’ or other services to be provided to enhance the audio elements of the local digital sound programme services proposed to be provided. List separately those provided by the relevant local digital sound programme licensees themselves (as ‘ancillary’ services) and those, if any, provided by other parties under a digital additional services licence. e) If it is intended to use an encryption system, state that this is so, and make clear to which local digital sound programme services it will apply, and how listeners will subscribe to the service.

The Channel Islands multiplex will support Dynamic Label Services (‘DLS’), DAB Slideshow (‘SLS’) and MOT carousel using simple, industry standard interfaces allowing service providers to use the “off-the-shelf” and well-supported software packages for generating content. From launch, all service providers will have access to DLS and SLS functionality. As data technologies and standards mature, we will work with service providers to launch other data services as appropriate.

DAB Slideshow enables enhanced content such as weather maps, album art and other visual data to be broadcast to the latest generation of digital radios. Bailiwick will transmit SLS within the XPAD.

We will also broadcast an Electronic Programme Guide. This will enable the broadcast of station logos and listings information. This will be transmitted as a standalone packet data.

11. Proposed local digital sound programme services

Provide details of any digital additional services and/or television licensable content services planned, other than programme-related data services (see Q.11(d) above), and the proportion of the total multiplex capacity which will be allocated to each of these.

* Applicants should note that this information is not relevant to section 51(2)(d), which relates only to digital sound programme services, but this question is positioned here for convenience.

None are currently proposed.

48 Section 51(2)(e): Broadening of local commercial DAB choice

13. Broadening of choice

Outline how the programming provided by the local digital sound programme services (other than BBC services) proposed will broaden the range of local digital sound programme services available in the area, and describe the extent to which the proposed local digital sound programme services will cater for tastes and interests different from those catered for by local digital sound programme services already available in the area. If the licence applied for is the first local radio multiplex licence to be advertised in an area, detail the breadth of programming which will be delivered by the range of local digital sound programme services to be provided on that local radio multiplex alone.

This licence is the first local multiplex to be advertised in the Channel Islands. Only BBC National services are currently available in the Channel Islands - Radios 1 to 5 Live, 1Xtra, 4 Extra, 5 Live Sports Extra, 6 Music, Asian Network and World Service.

As detailed in the answer to Question 11, the broadening of choice we are bringing is significant and comes from the enormous breadth and variety of services we have proposed.

As detailed in our answer to Question 14, the Islands do not currently have a competitive commercial radio market. There are significant gaps in provision for younger audiences, older audiences and niche audiences. There is also an opportunity to broaden the diversity and plurality of news and information supply to the Islands.

Our proposed complement of services have filled many of these gaps and opportunities. Our bouquet of services caters for almost every taste and interest including;

• People interested in hearing local news and information, with at least six commercial services providing such content.

• An extremely wide age range from Under 5s to over 60s.

• A variety of niche music formats from rock to country, easy to 80s.

• A significant proportion of the population, as well as for a broad range of listeners’ tastes and interests.

• The Channel Islands’ LGBT community.

49 Section 51(2)(f): Local demand or support

14. Audience requirements

Summarise the main findings of any original market research undertaken, or any analysis of existing audience research information, or any other form of evidence which demonstrates demand for the types of programme service and/or programme-related data or other data services proposed, or has otherwise influenced the applicant’s proposals.

If original market research has been undertaken, please provide the following information for each piece of research: a) A statement of the key objectives of the research; b) The specific questions that the research sought to answer; c) How the research was conducted; d) The size and composition of the sample(s); e) When and where the research was conducted;

Please provide your responses to (a) – (e) in tabular format.

KEY OBJECTIVES SPECIFIC QUESTIONS HOW CONDUCTED SIZE & WHEN COMPOSITION Desk Research To analyse the local To review population Analysis of Census data. N/A May marketplace growth and change. 2019 Online/census/ Review the current Guernsey and States of digital landscape. Jersey Government sites

RAJAR To understand the local To track the performance, Octagon and RAJAR N/A May radio market strengths and weaknesses 2019 of existing services

To track DAB penetration

f) A summary of the main findings from the research, showing how these demonstrate evidence of demand for the service proposed – this summary should represent a fair and accurate summary of the full results;

We considered current radio listening (RAJAR) and local population analysis to inform our proposals.

Given the breadth and range of services we are offering, we did not feel it necessary to carry out any specific audience research.

Taken as a whole, our proposed services will ensure the continuity of existing analogue services and introduce a fantastic array of services for all tastes and interests.

50 The Channel Islands radio market

The TSA’s of Jersey and Guernsey are 87,400 and 52,700 respectively, a combined 140,100. We reviewed radio listening in the Island FM and Channel 103 TSA.

Island FM

The following table analyses the adult population within the TSA (Q1 2019 data), highlighting the relative demographic splits of the population, and comparing that with the socio- demographic breakdown of actual radio listening share in the market. This shows how the Island FM performs against the relative population sub groups.

POPULATION POPULATION (%) SHARE

15 - 24 14.6 % 10.6 %

25 - 34 17.5 % 10.5 %

35 - 44 18.7 % 25.0 %

45 - 54 17.5 % 26.4 %

55 - 64 12.8 % 16.1 %

65 - 74 12.5 % 9.2 %

75 + 6.4 % 2.2 %

ABC1 61.7 % 40.5 %

C2DE 38.3 % 59.5 %

Male 48.2 % 54.0 %

Female 51.8 % 46.0 %

Source: RAJAR Q1 2019

Island FM significantly underperforms the population in younger demographics 15-34. Its core audience is 35-54 and it again underperforms with adults 65+. This suggests that there are opportunities for younger targeted formats (Hits) and older targeted formats (Easy/80s/ Melodic Hits).

In Guernsey, Island FM has fallen from 67% reach (June 2014) to 59% (May 2019). Over the same period the average hours of listening have dropped from 15.1 to 12.2. Market share has dropped from 48.3 to 39.7. All radio listening remains higher than the UK average at 93%. When Island FM is combined with BBC services available in the area this accounts for 96.1% of all radio listening. The remainder is made up of a large number of UK commercial radio services and 1.2% from non-RAJAR subscribers.

The 5 year trend for Island FM RAJAR shows relatively stable reach but consistently declining hours meaning the current audience hours of 375 considerably underperforms against the 5 year average of 458. It is clear that on the Channel Islands, as elsewhere across the UK, competition for listening has had an impact.

51 As expected, with the DAB platform currently unavailable, the overwhelming majority of Island FM’s audience hours come from FM (94%) however the market share for Island FM online is only 17% (vs 40% overall and 47% on AM/FM).

Across the last five years, internet and DAB listening have increased significantly although total digital listening (as a share of total hours) at 21.6% is less than half that of the All Radio TSA 56.4%

Q2 14 Q1 19

AM / FM 86.9 % 78.3 %

DAB 1.2 % 6.0 %

DTV 2.8 % 2.7 %

Internet 8.6 % 12.9 %

Analogue / Digital Not Stated 0.2 % 0.0 %

Digital Not Stated 0.3 % 0.0 %

Source: RAJAR Q1 2019

Channel 103 TSA

POPULATION POPULATION (%) SHARE

15 - 24 13.9 % 9.5 %

25 - 34 17.0 % 22.5 %

35 - 44 18.8 % 18.6 %

45 - 54 18.7 % 20.9 %

55 - 64 14.1 % 18.8 %

65 - 74 11.7 % 7.1 %

75 + 5.7 % 2.6 %

ABC1 61.6 % 44.4 %

C2DE 38.4 % 55.6 %

Male 49.2 % 43.6 %

Female 50.8 % 56.4 %

Source: RAJAR Q1 2019

Channel 103 underperforms against the population in the youngest (15-24) and oldest demographics (65-74 and 75+). Its core audience is in the main 25-54 age group, with the majority of station hours relatively evenly spread between the 25-64 demographics. This suggests there is unmet audience opportunity in the younger and older age groups. We have catered for these gaps in our proposed programme service line up with new CHR, Adult contemporary and Oldies formats.

52 Channel 103 enjoys a 53% weekly reach, a number that has declined over the past 5 years from 63%. Average hours however have remained constant at just under 11 and therefore market share has been steady at 35.1%.

When Channel 103 is combined with BBC services available in the area, this accounts for 92.7% of all radio listening. The remainder is made up of a large number of UK commercial radio services and 1.7% from non-RAJAR subscribers.

The 5 year trend for RAJAR shows relative stability for the service on the main indicators of reach, share and hours.

As expected, with the DAB platform currently unavailable to this service, the overwhelming majority of Channel 103’s audience hours come from FM (85%) although the service also performs well online (15%).

Across the last five years, internet and DAB listening have increased significantly although digital listening (as a share of total hours) at 28.1% is only half that of the UK TSA 56.4% but significantly higher than Guernsey (21.6%)

Q2 14 Q1 19

AM / FM 80.6 % 71.8 %

DAB 3.6 % 7.0 %

DTV 3.6 % 4.7 %

Internet 10.4 % 16.4 %

Analogue / Digital Not Stated 0.9 % 0.0 %

Digital Not Stated 1.0 % 0.0 %

Source: RAJAR

Output monitoring

Music

We reviewed the output of Island FM and Channel 103 between Monday 24th – Sunday 30th June 2019. We considered both 6am-7pm and 24 hours for each station. Both Island FM and Channel 103 have completely separate music logs and song universes.

MONITORING PERIOD: MON 24TH - SUN 30TH JUNE No. Track No. Unique 10s 00s 90s 80s 70s 60s Med. Year Played Tracks

Channel 103 (00.00 - 00.00) 2240 753 391 173 133 50 5 1 2010

Channel 103 (06.00 - 19.00) 1038 534 284 120 83 41 5 1 2011

Island FM (00.00 - 00.00) 2084 1037 419 176 270 168 4 0 2006

Island FM (06.00 - 09.00) 995 617 286 112 125 92 2 0 2007

Source: Radiomonitor

53 It is clear that each service is fairly broad in its music output, with more recent hits dominating. There is a very limited amount of music played pre-1980. Our range of programme services will address this deficit with a number of new channels catering for audiences who appreciate and desire music from earlier decades. It is clear that there is a very large gap and opportunity for services who’s music output focuses on the 60s and 70s. Our line-up provides for a number of services targeting these decades.

With the existing analogue commercial services continuing a mixed-decades strategy, it is clear that there is also a very clear gap and opportunity for new services that target younger audiences with a music format that solely focusses on current and recent decades. Again, our proposed line-up has a number of Hit Music and leading services which will cater for the tastes and interests of under 20s and under 30s audiences on the Channel Islands.

News / Sport / Weather

Channel 103

There is a fair amount of local news and information with a 4 minute news at breakfast with 1 minute half past headlines and 90 second sport. This reduces to 3 minute bulletins during daytime and 3 minutes at drive with 1 minute half past headlines and 90 second sport. The majority of stories were local in each bulletin.

Island FM

Similarly, this consisted a 3 minute news bulletin at breakfast with 1 minute half past headlines and 90 second sport. This reduced to a 2 minute bulletins during daytime and 2 minutes at drive with 1 minute half past headlines and 90 second sport. The majority of stories were local in each bulletin

Travel

Channel 103

Travel twice an hour throughout the day, mainly focusing on flights. Length varies throughout the day – anywhere between 1 and 2 minutes.

Island FM

Travel twice an hour throughout the day, mainly focusing on flights. Shorter than Channel 103 and between 45 and 90 seconds.

Presenter Links

Channel 103

Some local SPI and place name mentions around listener texts/calls. We noted a few local content links but the majority of links focused on tv/news/film/showbiz etc or competitions such as the mystery voice. Around 10 mins of speech per hour in breakfast, 4 mins in daytime and drive.

54 Island FM

Around 8 mins per hour throughout the day.

Speech conclusions

We believe this analysis demonstrates there is an opportunity for new providers of local content to innovate and demonstrate a fresh and different approach to local news and information. This local content could be generated through relationships with other news providers on the Channel Islands – such as local press or regional ITV – through to new local news start-ups. What our range of new radio services with local content will certainly deliver is a radical broadening of plurality to the current radio news and local content provision from commercial radio on the Channel Islands. This will be good for expanding the variety of local content heard on the radio and for listeners who are interested in hearing a wider range of stories and information

Desk research – population and trends

We reviewed a number of population data points, including Census data for 2011. We wanted to confirm the available audience for our services. In Jersey, the total resident population in 2011 was 97,857. The resident population increased by 9,100 between 2001 and 2011 (including the undercount in both censuses), corresponding to an increase of 10% over 10 years.

The resident population of Jersey has been increasing during the last 60 years. 34% live in Saint Helier. With the total is increasing at the rate of approximately 1,000 per year on average, the resident population is thought to have passed the 100,000 level during the course of 2013.

At the end of June 2018, Guernsey’s population was 62,734.The population increased by 0.52% (325 people) over the year ending June 2018, compared to a decrease of 0.29% over the year ending 30th June 2017. During the term of this licence, Guernsey’s population is forecast to increase to a maximum of 64,000 people by 2034.

A falling population has been a problem in Alderney for some time. According to a census carried out in 2013, the overall resident population has fallen by nearly 400 (17%) in the past 13 years, down from 2,294 in 2001 to 1,903 in March 2013. This is a similar number to the population in the 1970s and down 17% on the previous census in 2001. The number of people aged between 60 and 69 rose by 31% – the largest age group– with the average age of the island’s population at 51. In Sark, the annual population survey carried out by Sark Electricity also shows a decrease in the resident population, from 542 at the beginning of 2014 to 492 at the start of this year.

The median age in the Channel Islands is 42.9 . This compares to 40.2 in the UK. It is clear that older audiences in the UK are better served than in the Channel Islands where the median age is older. We will provide a number of services that will signify a major broadening of choice for older audiences on the Channel Islands.

In summary, the available audience is a viable base. It is a similar market size to the existing multiplex areas where we operate such as Pembrokeshire and Carmarthenshire in West Wales.

55 Economic overview

Guernsey and Jersey are self-governing Crown Dependencies. They each have their own directly elected legislative assembly, administrative, fiscal and legal systems, and own courts of law.

Islanders have British nationality, and are part of the Common Travel Area of the British Isles. The Crown, through the UK Government, is responsible for the island’s defence and formal international relations.

The islands are not part of the EU, but are part of the EU Customs Union. They are part of the OECD under the UK’s membership. Both Jersey and Guernsey access the EU Single Market via third country provisions and signing agreements outside of UK-EU relationship.

Both islands’ finance industries can expect their relationships with the EU to continue structurally unaffected, post-Brexit. The UK remains the Channel Island’s major trading partner however, so the UK’s future relationship with the EU, and the impacts on its economy, still has a knock-on effect on the islands.

As self-governing jurisdictions, Guernsey and Jersey have the power to shape their futures. They are making efforts to further diversify the economic base. Fintech and e-gaming are emerging niches, combining financial expertise with new technology.

With a legacy of growing flowers, fruit and vegetables for export, the islands have extensive horticulture infrastructure in place which is beginning to be revitalised for new purposes, including the production and processing of Cannabidiol (CBD) products, now a licensed industry.

Jersey and Guernsey are well-established financial centres. The sector remains the islands’ primary economic generator, accounting for 21% of employment and approximately 40% of their GVA. Total financial services employment has risen by 7% in Jersey in the last five years, and by 4% in Guernsey over the same period.

Key Economic Indicators 2018

GUERNSEY ANNUAL CHANGE JERSEY ANNUAL CHANGE

Population 62307 ^ 0.4% 105500 * 1.2%

Net Migration + 274 N/A + 1200 * N/A

GDP £3.05bn * 2.0% ^^ £4.3bn * 0.4% ^^

GDP Per Capita £48,950 N/A £40,790 N/A

Employment 31210 -0.2% 61930 0.5%

Financial Services Employment 6846 (21% of Total) 0.0% 13280 (21% of Total) 0.4%

Source: States of Guernsey and States of Jersey | Note: ^Mar 18 *2017, ^^ real

56 g) A copy of any detailed audience research report or analysis, from which the summary provided in the main application document has been derived, full data tables for any quantitative research undertaken, and any questionnaire used (these may be submitted in confidence).

See confidential section.

15. Local support

Provide any evidence which has been gathered of local support for the provision of the proposed local radio multiplex service.

In line with the application guidance, we have not sought any specific local support for our proposal.

We submit that support for the analogue services to simulcast is demonstrated through their RAJAR audience numbers, and that support for new services will be demonstrated as we build up to their launch and in their initial operational period.

To support both analogue simulcast and new digital services, we have an important role to generate awareness of digital radio on the Channel Islands. Our marketing budget will help us communicate the specific and more general benefits of DAB digital radio to the Channel Islands over the term of this license.

Bailiwick will offer a support website at bailiwickbroadcasting.com, where interested parties can see our current line up and put forward new expressions of interest.

The website will also provide a means of communication between the multiplex and service provider, in particular providing information on transmission issues and fault notices.

We will develop relationships with the listeners through the services we carry. We will want to ensure that we understand the local population, their likes and dislikes, the market gaps and what other services it can provide. Therefore, although there is no wish to have a dialogue with the audience, there is a need to provide a means of access and communication.

57 Section 51(2)(g): Fair and effective competition

16. Measures taken to ensure fair and effective competition

Detail the measures that have already been taken, and will be taken before and during the licence period, to demonstrate that “in contracting or offering to contract with persons providing digital sound programme services or digital additional services or television licensable content services, the applicant has acted in a manner calculated to ensure fair and effective competition in the provision of those services”.

Through our existing multiplex operations, we have an excellent understanding of those companies currently broadcasting or interested in broadcasting on DAB.

With confidentiality important, we actively only approached operators in the month prior to application submission. This was led by Ash Elford and Jason Bryant.

Our experience has identified that relationships are the best way to engage with prospective operators. Launching in a new DAB area is a significant undertaking and we have been pleased with the positive response to our approaches.

We have a number of opportunities remaining and these will be open to those that may come forward as we move forwards with our plans towards launch and beyond.

Since we knew of Tindle’s involvement in a competitor application, we did not approach them directly for reasons of confidentiality. In similar situations previously, director Jason Bryant has successfully contracted with the analogue radio competitor where its own bid was unsuccessful. These instances included London 2 and Aberdeen.

We have openly discussed our transmission plans, headline terms and potential fees (which will be dependent upon the transmission engineering contract that we will enter). We have engaged with all potential service providers in an open and non-exclusive manner, and will continue to do so. We will continue to operate in this open and transparent manner during the licence term.

A full summary of contacts and conversations is included in the confidential appendix.

Fair and Effective Competition during the Licence Period

Each service provider will enter a Service Provider Agreement; the key terms of which will be identical for all service providers. All fees charged will be pro-rata to capacity contracted by each service provider. No fees will be related to audience or revenue.

We will establish a Service Level Agreement with service providers. This will set out our communications and work policies, especially those relating to planned work and emergency outage notification.

58 17. Contacts with prospective service providers

Provide a comprehensive list of all prospective providers of digital sound programme services and/or digital additional services and/or television licensable content services with whom the applicant has had contact prior to and during the preparation of this application, at the initiative of either party, and in whatever form. Summarise the nature of the proposals discussed and, for each proposal which is not among those planned for inclusion on the multiplex (as per Q.11 and Q.12 above), state the reason(s) why the prospective provider and/or the service(s) proposed by that provider has not been included.

The response to this question has been submitted in confidence.

18. Contractual and other arrangements with service providers

For each digital sound programme service provider and/or digital additional service provider and / or television licensable content service provider named in this application: a) Supply details of the terms of access, including financial agreements. b) To what extent are any or all of these terms of access conditional? Clarify any conditions that exist. c) In respect of each named service provider for which details of terms of access are provided, supply a letter from the service provider confirming its agreement with the account of the terms of access provided above, and in particular with the fees it expects to pay.

The response to this question has been submitted in confidence.

Technical quality

19. Division of multiplex capacity

Show, by means of a pair of clearly-labelled tables, the proposed division of the available multiplex capacity into digital sound programme services and other services during all time periods. The tables should depict the proportion of the total available capacity (in kbits/sec) which it is proposed to allocate individually to each of the digital sound programme services listed in response to Q.11, plus any capacity reserved for expansion, inclusive of any ancillary services. It should also show the total proportion of the available multiplex capacity which it is proposed to allocate to digital additional services and television licensable content services. Please also indicate what proportion of these services will be programme-related (see paragraph 3.35). One of the tables should refer to the capacity units taken by each service (i.e. inclusive of capacity used for error protection), and the other table should refer to the bitrate net of error protection capacity, together with the associated protection level (1 to 5) which it is proposed to use, in accordance with EN 300 401.

59 Capacity utilisation of the multiplex by kilobits per second by service

DAYPART 09:00 - 18:00 18:00 - 09:00 MODE PROTECTION BITRATE BITRATE LEVEL Service

Access Radio - 24kbps DAB+ / HE-AACv2 EEP3a

Adult Contemporary 40kbps 40kbps DAB+ / HE-AACv2 EEP3a

Angel Radio 24kbps 24kbps DAB+ / HE-AACv1 EEP3a

Bailiwick Radio Classics 32kbps 32kbps DAB+ / HE-AACv2 EEP3a

Bailiwick Radio Hits 32kbps 32kbps DAB+ / HE-AACv2 EEP3a

BBC Radio Guernsey AM 24kbps - DAB+ / HE-AACv2 EEP3a

BBC Radio Jersey AM 24kbps - DAB+ / HE-AACv2 EEP3a

BBC Radio Guernsey FM 64kbps 64kbps DAB+ / HE-AACv2 EEP3a

BBC Radio Jersey FM 64kbps 64kbps DAB+ / HE-AACv2 EEP3a

Channel 103 112kbps 112kbps DAB / MPEG Audio Layer 2 UEP3

Chris Country 32kbps 32kbps DAB+ / HE-AACv2 EEP3a

Community Radio 24kbps 24kbps DAB+ / HE-AACv2 EEP3a

Contemporary Hit Radio 40kbps 40kbps DAB+ / HE-AACv2 EEP3a

Crown 80s 48kbps 48kbps DAB+ / HE-AACv2 EEP3a

Crown Easy 48kbps 48kbps DAB+ / HE-AACv2 EEP3a

Crown Radio 48kbps 48kbps DAB+ / HE-AACv2 EEP3a

Crown Rock 48kbps 48kbps DAB+ / HE-AACv2 EEP3a

Gaydio 32kbps 32kbps DAB+ / HE-AACv2 EEP3a

Island FM 112kbps 112kbps DAB / MPEG Audio Layer 2 UEP3

Little Radio 32kbps 32kbps DAB+ / HE-AACv2 EEP3a

Melodic Hits 40kbps 40kbps DAB+ / HE-AACv2 EEP3a

News Radio UK 32kbps 32kbps DAB+ / HE-AACv2 EEP3a

Radio Caroline 32kbps 32kbps DAB+ / HE-AACv2 EEP3a

Skylab Radio - 32kbps DAB+ / HE-AACv2 EEP3a

Visitor Radio 32kbps 32kbps DAB+ / HE-AACv2 EEP3a

Electronic Programme Guide 8kbps 8kbps Packet data EEP3a

Spare 128kbps 120kbps

In our answer to Question 11, we stated that BBC Radio Guernsey AM and BBC Radio Jersey AM services would broadcast only when required by the BBC. Therefore there may be days when these services do not broadcast at all, or are broadcast for a shorter time than 09:00 to 18:00. When BBC Radio Guernsey AM is not required, the hours of Skylab Radio will be extended. When BBC Radio Jersey AM is not required, the hours of Access Radio will be extended.

60 Capacity utilisation of the multiplex by Capacity Units by service.

DAYPART 09:00 - 18:00 18:00 - 09:00 MODE CUs CUs Service

Access Radio - 18 DAB+ / HE-AACv2

Adult Contemporary 30 30 DAB+ / HE-AACv2

Angel Radio 18 18 DAB+ / HE-AACv1

Bailiwick Radio Classics 24 24 DAB+ / HE-AACv2

Bailiwick Radio Hits 24 24 DAB+ / HE-AACv2

BBC Radio Guernsey AM 18 - DAB+ / HE-AACv2

BBC Radio Jersey AM 18 - DAB+ / HE-AACv2

BBC Radio Guernsey FM 48 48 DAB+ / HE-AACv2

BBC Radio Jersey FM 48 48 DAB+ / HE-AACv2

Channel 103 84 84 DAB / MPEG Audio Layer 2

Chris Country 24 24 DAB+ / HE-AACv2

Community Radio 18 18 DAB+ / HE-AACv2

Contemporary Hit Radio 30 30 DAB+ / HE-AACv2

Crown 80s 36 36 DAB+ / HE-AACv2

Crown Easy 36 36 DAB+ / HE-AACv2

Crown Radio 36 36 DAB+ / HE-AACv2

Crown Rock 36 36 DAB+ / HE-AACv2

Gaydio 24 24 DAB+ / HE-AACv2

Island FM 84 84 DAB / MPEG Audio Layer 2

Little Radio 24 24 DAB+ / HE-AACv2

Melodic Hits 30 30 DAB+ / HE-AACv2

News Radio UK 24 24 DAB+ / HE-AACv2

Radio Caroline 24 24 DAB+ / HE-AACv2

Skylab Radio - 24 DAB+ / HE-AACv2

Visitor Radio 24 24 DAB+ / HE-AACv2

Electronic Programme Guide 6 6 Packet data

Spare 96 90

All capacity on the multiplex is allocated to programme services. The Electronic Programme Guide shall provide listings information relevant to the programme services carried on the multiplex. There will also be station logos for our services carried within the EPG. No capacity is allocated for non-programme related services. No capacity is allocated for television services or DAS data.

61 20. Basis of allocation of multiplex capacity

On what basis have technical decisions on the allocation of multiplex capacity to each of the proposed digital sound programme services been made? How has the balance been determined between the number of services to be accommodated and the audio quality and robustness of reception which each will enjoy?

We have taken a market led approach to allocating capacity on our multiplex. We have consulted our service providers, and allocated them the capacity required. Our use of the Factum Radioscape Enmuxa system enables high quality encoding at lower bitrates.

We have allocated 112kbps for each of Island FM and Channel 103, as this will provide good quality stereo on legacy DAB. If either Island FM and/or Channel 103 wish to contract for a lower bitrate, this request will be accommodated by us. In the event less capacity is contracted by Island FM and/or Channel 103, we would advertise the spare capacity to other interested broadcasters.

All services are allocated either UEP3 or EEP3a for the protection level. This is in line with Ofcom’s recently updated DAB Technical Code and provides a good balance between reception robustness and overall capacity of the multiplex. The three transmitters proposed will ensure robust reception throughout the Channel Islands at UEP3 and EEP3a. Broadcasting all services at the same protection level also ensures a consistent experience for the listener.

62 21. Audio characteristics

For each local digital sound programme service proposed to be provided, state whether it will be broadcast in ‘stereo’ or ‘mono’, and whether it will operate at ‘full-rate coding’ or ‘half- rate coding’. The response to this question should be consistent with the proposed division of multiplex capacity set out in response to Q.19.

TIME 09:00 - 18:00 18:00 - 09:00 Service Mode Sample Mode Sample

Access Radio - - Parametric stereo 24kHz

Adult Contemporary Parametric stereo 32kHz Parametric stereo 32kHz

Angel Radio Mono 32kHz Mono 32kHz

Bailiwick Radio Classics Parametric stereo 32kHz Parametric stereo 32kHz

Bailiwick Radio Hits Parametric stereo 32kHz Parametric stereo 32kHz

BBC Radio Guernsey AM Parametric stereo 32kHz - -

BBC Radio Jersey AM Parametric stereo 32kHz - -

BBC Radio Guernsey FM Stereo 48kHz Stereo 48kHz

BBC Radio Jersey FM Stereo 48kHz Stereo 48kHz

Channel 103 Joint stereo 48kHz Joint stereo 48kHz

Chris Country Parametric stereo 32kHz Parametric stereo 32kHz

Community Radio Parametric stereo 32kHz Parametric stereo 32kHz

Contemporary Hit Radio Parametric stereo 32kHz Parametric stereo 32kHz

Crown 80s Parametric stereo 48kHz Parametric stereo 48kHz

Crown Easy Parametric stereo 48kHz Parametric stereo 48kHz

Crown Radio Parametric stereo 48kHz Parametric stereo 48kHz

Crown Rock Parametric stereo 48kHz Parametric stereo 48kHz

Island FM Joint stereo 48kHz Joint stereo 48kHz

Little Radio Parametric stereo 32kHz Parametric stereo 32kHz

Melodic Hits Parametric stereo 32kHz Parametric stereo 32kHz

News Radio UK Parametric stereo 32kHz Parametric stereo 32kHz

Radio Caroline Parametric stereo 32kHz Parametric stereo 32kHz

Skylab Radio - - Parametric stereo 32kHz

Visitor Radio Parametric stereo 32kHz Parametric stereo 32kHz

63 Declaration

Applicants are required to conclude their submission by making the following declaration:

I hereby apply for and on behalf of Bailiwick Broadcasting Ltd (the “Company”) to the Office of Communications (“Ofcom”) for the Local Radio Multiplex Licence for the Channel Islands (as specified in Ofcom’s Notice dated 17 April 2019) in order to provide the local radio multiplex service proposed in this application. I confirm that the appropriate payment has been submitted for this application.

I further confirm that the Company consents to Ofcom publishing this application on its website or otherwise disclosing this application to any person, together with the Company’s responses to any request by Ofcom for the Company to furnish additional information about its proposal. This consent does not extend to any part of this application or such responses that the Company has requested that Ofcom should keep confidential by including such information in a separate annex (or other agreed form) that is clearly marked ‘confidential’.

I declare that the information given by the Company in this application form is accurate and up-to-date to the best of my and the Company’s knowledge and that any matters which might influence Ofcom’s judgement as to whether the directors and substantial shareholders involved in the application are fit and proper persons to participate in a radio licence have been made known to Ofcom.

I further declare and warrant that the Company is not a disqualified person within the meaning of that expression as defined in Part II of Schedule 2 to the Broadcasting Act 1990 or as a result of a disqualification order under section 145 of the Broadcasting Act 1996, and that having made all reasonable enquiries neither the Company nor any person by which the Company is controlled will, as a result of this application, be in breach of any other requirement of Schedule 2 to the 1990 Act as amended.

Jason Bryant Director 16 July 2019

64 CERTIFICATE OF INCORPORATION ON CHANGE OF NAME

Company Number 5388776

The Registrar of Companies for England and Wales hereby certiﬁes that under the Companies Act 2006:

BRISTOL SOUND LIMITED

a company incorporated as private limited by shares, having its registered ofﬁce situated in England and Wales, has changed its name to:

BAILIWICK BROADCASTING LIMITED

Given at Companies House on 10th July 2019.

The above information was communicated by electronic means and authenticated by the Registrar of Companies under section 1115 of the Companies Act 2006