Bauer Digital Radio Limited

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An application to Ofcom for a local DAB digital radio multiplex licence to serve North & West Cumbria

Part A – Public Section

September 2019

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

1. Bauer Digital Radio, a subsidiary of Bauer Radio, is pleased to submit an application for a local DAB digital radio multiplex to serve North & West Cumbria (‘BDR Cumbria’), bringing a combination of established and respected local and branded radio services.

2. When designing its coverage plans, BDR was cognisant of the coverage of the national multiplexes and existing neighbouring local multiplexes, and Ofcom's plans for small scale multiplexes in the area. Whilst Digital One covers parts of North & West Cumbria, Sound Digital does not and there are no plans to expand coverage to the area. In addition, Ofcom has identified two small scale polygons in North & West Cumbria which will provide opportunities for community and localised commercial services. As such, BDR has focused on delivering a North & West Cumbria multiplex that will enable existing analogue services in the area to broadcast on DAB and for a range of branded services to broaden choice, catering for a wide range of tastes and interests.

3. BDR Cumbria’s proposal is to launch with 13 services:

4. Capacity has been allocated to accommodate existing local analogue services from launch - BBC Radio Cumbria and CFM. These services collectively account for 26.3% of total radio listening in the CFM TSA.

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5. Capacity has also been allocated to bring a range of new digital services that will broaden choice and expand the range of formats in the market. Individually and collectively, they cater for a wide range of tastes and interests - Greatest Hits Radio, Country Hits Radio, Planet Rock, Scala Radio, Absolute Radio 80s, Absolute Radio 90s, Absolute Classic Rock, Magic Chilled, Magic Soul, Mellow Magic and Jazz FM.

6. BDR Cumbria has 18% of capacity remaining available and will continue to market the multiplex and contract with additional content providers – large and small, commercial and community, who wish to cover the whole area – creating further choice for listeners and opportunities for new radio services.

7. BDR’s proven success in delivering for content providers, stands it in good stead for the evolution of the multiplex and the services that it carries over the licence term.

Bauer Digital Radio

8. Bauer Digital Radio Ltd (’BDR’) was formed when Emap Digital Radio and Score Digital were combined following the takeover of Scottish Radio Holdings by Emap, and the subsequent acquisition by Bauer Media.

9. BDR has 20 years’ experience as a multiplex operator and currently operates 12 local multiplexes that provide local DAB across England, Scotland and Northern Ireland. Bauer is also a partner in five other local multiplexes (excluding recent acquisitions) and a 30% shareholder in the Sound Digital national multiplex.

10. BDR’s ethos is that digital radio should be available in a cost and operationally efficient manner to enable as many organisations as possible to broadcast. BDR Cumbria will offer a range of broadcast options to make DAB economical to content providers, including DAB and DAB+ options.

11. BDR Cumbria will launch and operate an efficient multiplex that offers reasonable carriage costs and a flexible bitrate management policy that provides an excellent opportunity for a range of organisations to broadcast.

Meeting the Award Criteria

Proposed coverage and timetable to launch

12. The BDR Cumbria transmission proposal has been designed to provide optimum population coverage from launch within 12 months of a successful award of licence. The coverage plan takes into account coverage of the existing national multiplexes held by the BBC, Digital One and Sound Digital, as well as neighbouring local DAB multiplexes.

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13. Using five transmitters, the coverage plan will deliver 'outdoor coverage' (e.g. to in- car and mobile receivers) to 74.5% of roads and indoor coverage (e.g. to kitchen radios) to 221k adults 15+ (82.5%).

Ability to establish and maintain the service

14. BDR has considerable digital radio experience and is well-resourced to support a North & West Cumbria multiplex throughout the licence term.

Catering for local tastes and interests and broadening choice

15. BDR has undertaken desk research to support its proposals, including population profiling and analysis of existing radio listening habits in the area and to the proposed brand services. Taken as a whole, the proposed line-up of services will ensure heritage services have a digital future, with new services broadening choice and catering for a wide range of local tastes and interests.

Demonstrating local demand and support

16. RAJAR provides strong evidence of demand and interest in simulcast services and services new to the area.

Being fair and effective

17. BDR has established fair and transparent policies for negotiations with potential content providers and have engaged in an open and non-exclusive manner.

Summary

• BDR Cumbria is committed to delivering robust local DAB coverage for North & West Cumbria. • BDR Cumbria will deliver a range of simulcast and new services that appeal to local residents and help commercial radio improve its market share. • BDR Cumbria is well resourced, in terms of both management and finance, and will be led by a management team with a strong track record in operating local multiplexes. • Bauer Radio has an impressive track record in operating both local and national analogue and digital-only stations. This expertise will be invaluable to the multiplex, as well as assisting the development of new programming streams.

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General information

1. Name of Applicant, Address, Telephone No. and E-Mail 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.

Bauer Digital Radio Ltd Company number 01875591

2. Main Contact (For Public Purposes) Please nominate at least one individual to deal with any press or public enquiries, stating:

Name: Grae Allan Telephone (daytime): 0141 565 2347 Address: 3 South Avenue, Clydebank, Glasgow G81 2RX 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: Grae Allan Telephone (daytime): 0141 565 2347 Address: 3 South Avenue, Clydebank, Glasgow G81 2RX E-mail address: [email protected]

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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 households, major roads and/or the adult (aged 15+) population which will be served by this local radio multiplex service for both indoor and outdoor coverage.

18. BDR Cumbria’s transmission proposal has been designed to provide optimum population coverage across North & West Cumbria from launch.

19. BDR has worked with Arqiva to create a transmission plan that takes account of the footprints of local analogue services and the existing BBC and commercial multiplexes, and will contract with Arqiva if awarded the multiplex licence.

20. At launch, BDR Cumbria will use five transmitters. Within the proposed North & West Cumbria licensed area (for 50% time interference); 'outdoor coverage' (e.g. to in-car and mobile receivers) will reach 74.5% of roads and indoor coverage (e.g. to kitchen radios) will reach 221k adults - 82.5%:

Caldbeck A high power transmitter using the existing Digital One national DAB antenna providing:

 Robust indoor coverage to Carlisle and the surrounding area  Outdoor mobile coverage of Carlisle, North Cumbria and the M6 motorway.

Penrith A medium power transmitter using the existing national antenna providing:

 Robust indoor coverage Penrith and the surrounding area  Outdoor mobile coverage of Penrith area and the M6 motorway

Broughton Moor A medium power transmitter using the existing national antenna providing:

 Robust indoor coverage for the west of North Cumbria from Workington and Maryport to Cockermouth and the surrounding area  Outdoor mobile coverage of the A596 completing coverage between Carlisle and Workington and the surrounding areas

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Whitehaven A medium power transmitter using the existing national antenna providing:

 Robust indoor coverage to Whitehaven and the surrounding area  Outdoor mobile coverage of Whitehaven and the A595 between Whitehaven and Workington / Great Broughton

Keswick A medium power transmitter using the existing national antenna providing:

 Robust indoor coverage to Keswick and the surrounding area  Outdoor mobile coverage of the Keswick area and the A66 connecting Cockermouth and Penrith via Keswick

21. In planning the network, Arqiva has assumed the following service levels as defined in the Ofcom advertisement for Cumbria licence:  54dBuV/m at 10m agl for outdoor mobile road coverage.  63dBuV/m at 10m agl for useful indoor coverage in a suburban environment.

22. Arqiva has calculated a potential adult 15+ population of 267,793 with 686km of roads within BDR Cumbria’s proposed North & West Cumbria proposed Digital Licence Area - DLA. The following table summarises percentage coverage based on the Arqiva UKPM coverage model.

North & West Cumbria DLA: Outdoor Coverage (54 dB) Indoor Coverage (63 dB) Roads - 686km / Adult 15+ - 267,793 Roads (km) % Covered Adults % Covered Normal Propagation (50%T int) 511 74.5% 221,026 82.5% Interference Limited (1%T int) 462 67.3% 216,093 80.7%

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23. The following map indicates proposed coverage for North & West Cumbria (interference limited indoor)

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24. The following map indicates proposed coverage for North & West Cumbria (interference limited outdoor/mobile, including Keswick)

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Standalone Coverage

25. The following table summarises the contribution to coverage (Interference Limited) of each individual site within the proposed North & West Cumbria (including Keswick) area, demonstrating the overlap between transmitters which will ensure a reliable signal to a significant proportion of the licensed area, even should one transmitter be on reduced power or have failed.

Transmitters Outdoor Coverage (54 dB) Indoor Coverage (63 dB) Roads (km) % Covered Adults % Covered Caldbeck 208 30% 107180 40.0% Penrith 139 20% 29,013 10.8% Broughton Moor 71 10% 34,605 12.9% Whitehaven 40 6% 40,789 15.2% Keswick 38 5% 5,863 2.2%

Cumulative Coverage

26. The following table shows how coverage (Interference Limited) is built up through the use of the network of transmitters.

Transmitters Outdoor Coverage (54 dB) Indoor Coverage (63 dB) Roads (km) % Covered Adults % Covered Caldbeck 208 30.3% 107,180 40.0% Penrith 317 46.2% 132,898 49.6% Broughton Moor 385 56.1% 168,903 63.1% Whitehaven 423 61.6% 210,204 78.5% Keswick 462 67.3% 216,093 80.7%

Network Resilience

27. The following table shows the impact (Interference Limited) from the loss of one transmitter at a time, demonstrating its contribution to the overall network.

Loss of one transmitter: Outdoor Coverage (54 dB) Indoor Coverage (63 dB) Roads (km) % Covered Adults % Covered Network less Caldbeck 287 42% 111,016 41.4% Network less Penrith 354 51% 190,375 71.1% Network less Broughton Moor 397 57% 179,766 67.1% Network less Whitehaven 424 61% 174,781 65.3% Network less Keswick 423 61% 210,204 78.5%

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5. Timetable for coverage roll-out 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.

28. BDR Cumbria proposes to launch the North & West Cumbria multiplex within 12 months of a successful licence award.

Antenna Systems and Combiner 29. 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 30. Arqiva propose to use transmitters from a major European supplier, Tryo Communication Systems, S.A. with whom Arqiva have a Frame Agreement. Tryo have confirmed their ability to provide the necessary transmitter systems and services within the required timescales.

Distribution 31. The distribution of ETI signals between the multiplex centre and the transmitters will use some combination of Arqiva network circuits, SHF links and leased fibre 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 32. Arqiva has confirmed that it can provide suitable accommodation and power supply.

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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

33. The assignment details accompanying this application are provided under separate cover as electronic files. 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.

34. The following table details all of the information requested in question 6b

Antenna New or Site ERP Implementation Site Name NGR Height Antenna Proposed Existing Owner kW Date m agl Antenna Caldbeck NY299 Arqiva 107 Share into existing Digital Existing 5.0 Within 12 months 425 One National antenna - Antenna of award of 2 Tiers of screened licence dipoles Penrith NY531 Arqiva 50 Share into existing Existing 1.0 Within 12 months 313 National antenna – Antenna of award of 4 Tiers of single DAB licence dipoles on a pole Broughton NY058 United 27 Share into existing Existing 1.0 Within 12 months Moor 330 Utilities National antenna – Antenna of award of 2 Tiers of single DAB licence dipoles on a pole Whitehaven NX992 Arqiva 42.0 Share into existing Existing 1.0 Within 12 months 123 National antenna – Antenna of award of 2 Tiers of single DAB licence dipoles on a pole Keswick NY278 Arqiva 52 Share into existing Existing 1.0 Within 12 months 224 National antenna – Antenna of award of 2 Tiers of single DAB licence dipoles on a pole

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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 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:  aerial mounting on the supporting structure, as proposed in the sketch diagram;  running of feeder cable from transmission system to aerial(s);  sharing of aerials and insertion/use of combiners, where relevant;  siting of transmission equipment;  supply of power;  building works (if any).

The relevant party in each case, namely whoever controls the infrastructure (mast, cableways, building, power), should be named explicitly.

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35. The table below details all the data requested in question 6c ii, iii and iv. Arqiva has confirmed that the designs of the existing antennas and feeder systems are suitable for use at the powers indicated in the Assignment Details, and that the sites can be made available for the proposed transmitter systems. Electrical power is available. Minor building works are required and Arqiva has confirmed it will undertake these.

Site Name Caldbeck Penrith Broughton Moor Whitehaven Keswick

NGR NY299425 NY531313 NY058330 NX992123 NY278224

Existing DAB Site Existing Existing Existing Existing Existing

Site Owner Arqiva Arqiva United Utilities Arqiva Arqiva

Site Owner Yes from Arqiva Yes from Arqiva Yes via Arqiva Yes from Arqiva Yes from Arqiva Approval of Transco Reference proposals Offer

Antenna Height 107 50 27 42.0 52 (agl)

Antenna Proposed Share into existing Share into existing Share into existing Share into existing Share into existing Digital One National National antenna National antenna National antenna National antenna antenna - 4 Tiers of single 2 Tiers of single 2 Tiers of single 2 Tiers of single 2 Tiers of screened DAB dipoles on a DAB dipoles on a DAB dipoles on a DAB dipoles on a dipoles pole pole pole pole

New or Existing Existing Antenna Existing Antenna Existing Antenna Existing Antenna Existing Antenna Antenna

ERP (kW) 5.0 1.0 1.0 1.0 1.0

Drive Arrangement Dual Dual Dual Dual Dual

ACI Issue NO NO NO NO NO Co-sited with other Co-sited with other Co-sited with other Co-sited with other Co-sited with services (D1) services (BBC/D1) services (BBC) services (BBC/D1) other services (BBC)

Transmitter New transmitter to New transmitter to New transmitter to New transmitter to New transmitter Location Notes be located within be located within be located within be located within to be located the existing the existing the existing the existing within the existing accommodation accommodation accommodation accommodation accommodation near to the existing near to the existing near to the existing near to the existing near to the DAB Transmitter. DAB Transmitter. DAB Transmitter. DAB Transmitter. existing DAB Using existing Using existing Using existing Using existing Transmitter. Using power and power and power and power and existing power and ventilation ventilation ventilation ventilation ventilation infrastructure, infrastructure, infrastructure, infrastructure, infrastructure, modified as modified as modified as modified as modified as required required required required required

Transmitter Size 2.4kW Dual Drive 300W Dual Drive 600W Dual Drive 600W Dual Drive 600W Dual Drive required

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

36. BDR Cumbria has an initial offer from Arqiva. Formal contract negotiations will be concluded after award. BDR has existing framework contracts with Arqiva and has experience in concluding such contracts and does not foresee any issues.

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.

37. Figure 7.1 and Figure 7.2 show the proposed BDR Cumbria contribution network and multiplex ETI distribution diagram. The specific details of each of the individual content provider’s contribution circuits are documented in drawing 7.1. The details of the distribution elements of the network are included in drawing 7.2.

Figure 7.1: Multiplexing and Control

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Figure 7.2: Transmission distribution

38. Arqiva’s Emley Moor network operations centre (NOC) will manage the day to day operation of the transmission system. All aspects of the multiplexer’s configuration, including the main service channel (MSC) and the fast information channel (FIC), will be remotely telemetered and controlled through purpose designed systems. The telemetry system will also provide feedback to the NOC for all elements in the contribution and distribution chains.

39. The timing accuracy of the single frequency network will be continuously monitored by Arqiva’s proprietary GPS referenced transmitter timing monitoring hardware and software.

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40. The following table summarises proposed content provider contribution details.

Service Service Address Service Main Contribution Circuit Back Up Contribution Provider Type Circuit CFM Castle Quay, DSPS Arqiva managed Arqiva managed Arqiva Castlefield, connectivity to Arqiva connectivity to Arqiva Manchester, M15 4PR Croydon multiplexer and Croydon multiplexer and transmitters transmitters Greatest Hits Castle Quay, DSPS Arqiva managed Arqiva managed Arqiva Radio Castlefield, connectivity to Arqiva connectivity to Arqiva Manchester, M15 4PR Croydon multiplexer and Croydon multiplexer and transmitters transmitters Country Hits 1 Golden Square, DSPS Arqiva managed Arqiva managed Arqiva Radio London W1F 9DF connectivity to Arqiva connectivity to Arqiva Croydon multiplexer and Croydon multiplexer and transmitters transmitters Planet Rock 1 Golden Square, DSPS Arqiva managed Arqiva managed Arqiva London W1F 9DF connectivity to Arqiva connectivity to Arqiva Croydon multiplexer and Croydon multiplexer and transmitters transmitters Scala Radio 1 Golden Square, DSPS Arqiva managed Arqiva managed Arqiva London W1F 9DF connectivity to Arqiva connectivity to Arqiva Croydon multiplexer and Croydon multiplexer and transmitters transmitters Absolute Radio 1 Golden Square, DSPS Arqiva managed Arqiva managed Arqiva 80s London W1F 9DF connectivity to Arqiva connectivity to Arqiva Croydon multiplexer and Croydon multiplexer and transmitters transmitters Absolute Radio 1 Golden Square, DSPS Arqiva managed Arqiva managed Arqiva 90s London W1F 9DF connectivity to Arqiva connectivity to Arqiva Croydon multiplexer and Croydon multiplexer and transmitters transmitters Absolute Classic 1 Golden Square, DSPS Arqiva managed Arqiva managed Arqiva Rock London W1F 9DF connectivity to Arqiva connectivity to Arqiva Croydon multiplexer and Croydon multiplexer and transmitters transmitters Magic Chilled 1 Golden Square, DSPS Arqiva managed Arqiva managed Arqiva London W1F 9DF connectivity to Arqiva connectivity to Arqiva Croydon multiplexer and Croydon multiplexer and transmitters transmitters Magic Soul 1 Golden Square, DSPS Arqiva managed Arqiva managed Arqiva London W1F 9DF connectivity to Arqiva connectivity to Arqiva Croydon multiplexer and Croydon multiplexer and transmitters transmitters Mellow Magic 1 Golden Square, DSPS Arqiva managed Arqiva managed Arqiva London W1F 9DF connectivity to Arqiva connectivity to Arqiva Croydon multiplexer and Croydon multiplexer and transmitters transmitters Jazz FM 1 Golden Square, DSPS Arqiva managed Arqiva managed Arqiva London W1F 9DF connectivity to Arqiva connectivity to Arqiva Croydon multiplexer and Croydon multiplexer and transmitters transmitters BBC Cumbria Centrally supplied by DSPS Arqiva managed Arqiva managed Arqiva BBC from BBC BH & connectivity to Arqiva connectivity to Arqiva Wood Norton Croydon multiplexer and Croydon multiplexer and transmitters transmitters

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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.

41. The following table summarises data services.

Service Transport Stream or Average net Service Encryption Use Mechanism Packet data rate Type Mode CFM Short X-PAD Stream 1.333kbits/s Ancillary No DLS (DAB) and DAS Greatest Hits Radio Short X-PAD Stream 1.333kbits/s Ancillary No DLS (DAB) and DAS Country Hits Short X-PAD Stream 1.333kbits/s Ancillary No DLS (DAB+) and DAS Planet Rock Short X-PAD Stream 1.333kbits/s Ancillary No DLS (DAB) and DAS Scala Radio Short X-PAD Stream 1.333kbits/s Ancillary No DLS (DAB) and DAS Absolute Radio 80s Short X-PAD Stream 1.333kbits/s Ancillary No DLS (DAB) and DAS Absolute Radio 90s Short X-PAD Stream 1.333kbits/s Ancillary No DLS (DAB) and DAS Absolute Classic Short X-PAD Stream 1.333kbits/s Ancillary No DLS Rock (DAB+) and DAS Magic Chilled Short X-PAD Stream 1.333kbits/s Ancillary No DLS (DAB+) and DAS Magic Soul Short X-PAD Stream 1.333kbits/s Ancillary No DLS (DAB+) and DAS Mellow Magic Short X-PAD Stream 1.333kbits/s Ancillary No DLS (DAB) and DAS Jazz FM Short X-PAD Stream 1.333kbits/s Ancillary No DLS (DAB+) and DAS BBC Cumbria Short X-PAD Stream 1.333kbits/s Ancillary No DLS (DAB)

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).

42. BDR is committed to launch the North & West Cumbria multiplex with all identified programme services within 12 months of licence award.

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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.

43. BDR has an established board with four directors. Further details are provided in confidence in Part B. 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.

44. There are no plans to appoint any further directors.

Grae Allan

Occupation: DAB Radio Director

Other directorships: Sound Digital Ltd, Switchdigital (London) Ltd, The Digital Radio Group (London) Ltd, C.E. Digital Ltd, MuxCo Lincolnshire Ltd, MuxCo Suffolk Ltd

Other Media Interests: None

45. Grae Allan manages Bauer Digital Radio Ltd which operates twelve local DAB multiplexes. Grae began his career at Radio Clyde in Glasgow in 1978, becoming Engineering Director of Clyde which was then part of Scottish Radio Holdings plc (SRH).

46. Grae later established Score Digital Ltd, securing five local multiplex licences in Scotland and Northern Ireland. Following the takeover of SRH in 2005, Grae took on responsibility for the digital radio interests at emap which was in turn acquired by Bauer Media Group in 2008.

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Peter Davies

Occupation: Business Development Director, Bauer Radio

Other directorships: None

Other Media Interests: None

47. Peter Davies joined Bauer Radio UK in 2018 as Business Development Director supporting the strategic development of Bauer’s UK radio business. He is a Chartered Accountant who worked at the BBC from 1993 to 2003, culminating as Controller of Corporate Strategy. While there he worked closely on the development and launch of the Freeview platform, winning the DTT multiplex licences awarded by the ITC.

48. Peter then worked at Ofcom for 13 years as Director of Radio & Broadcast Licensing and the Director of Content Policy. While at Ofcom he led Ofcom’s review of Public Service Broadcasting and pushed forward the growth of digital radio, securing the licensing process for further national and local DAB licences and leading the planning of coverage roll-out financially supported by Government, the commercial radio industry and the BBC.

Richard Jackson

Occupation: Finance Director, Bauer Radio

Other directorships: C.E. Digital Ltd, Independent Radio News Ltd

Other Media Interests: None

49. Richard Jackson is Finance Director for Bauer Radio. Richard’s career in radio started 21 years ago as Finance Manager at Key 103 in Manchester and Radio Aire in Leeds. He quickly moved into the newly created role of Financial Planning and Analysis Manager for the EMAP radio group. In this role Richard has financially planned and executed most of the significant changes for the group including finance lead in the acquisition and integration of Scottish Radio Holdings in 2005 and the transition into the Bauer Group in 2008.

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50. Richard was part of the team that successfully acquired and integrated Planet Rock into the group after which he was promoted to Head of Finance in 2013. Following the acquisition and integration of Absolute Radio into the Bauer Group, Richard was promoted to Finance Director in October 2015. Since that time Richard has been part of the acquisition team for the purchase of Orion Media in the Midlands in 2016 and the acquisitions of Celador Radio, Lincs FM Group, UKRD and the UK mainland Local Radio assets of Wireless Group.

51. Richard is a keen supporter of DAB and is heavily involved in Bauer’s DAB strategy. This has included work on renewing its network of Local DAB multiplex licenses, and on the Government and industry backed agreements on the rollout of improved local DAB coverage and most recently Bauer’s successful application for the Second National DAB Multiplex alongside Arqiva and Wireless Group.

Susan Tattum

Occupation: Financial Controller, Bauer Media

Other directorships: Future Projects Consultancy Limited

Other Media Interests: None

52. Sue Tattum is the Financial Controller for Bauer Media, working across radio, publishing and all other Bauer activities in the UK.

53. Sue has had a long and illustrious career with Bauer Media having joined the group in 1998 when she was appointed Deputy Financial Controller for radio. In early 2003 she became the Head of Finance for Radio before being promoted to her current role as Financial Controller for the UK group.

54. Sue has been an integral part of the development of the UK radio business. More recently she has played a key role on acquisitions where her specialist tax knowledge has steered the group through the recent transactions with Celador Radio, Lincs FM Group, UKRD and the UK mainland Local Radio assets of Wireless Group.

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(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.

Shareholder Shares Shareholding Loan stock

Bauer Radio Limited 3,200,100 100% 100% A company registered in England with registered number 1394141 and having its registered office at 1 Lincoln Court, Lincoln Road, Peterborough PE1 2RF ii) Total number, class/classes of shares and issue price of shares (specify voting, non-voting, preference, other etc.).

55. There is just one class of ordinary shares - 3,200,100 £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.

56. See above. iv) Outline any shareholders agreements or arrangements which exist.

57. 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.

58. Bauer Digital Radio Limited and Bauer Radio Limited are existing Ofcom licensees. 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.

59. Bauer Digital Radio Ltd is wholly owned by Bauer Radio Ltd. Statutory accounts for Bauer Digital Radio Ltd are provided under separate cover. 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.

60. We would be happy to provide any information as requested by Ofcom.

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(c) Involvement of the Applicant in Specified Activities 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 iii) Other broadcasting interests;

Bauer Media has wide-ranging existing television and radio broadcasting interests in the UK. For the purposes of this question, the term ‘Bauer’ is used to refer to the company’s respective group, including affiliate companies and subsidiaries.

Bauer operates a significant number of analogue and digital radio services, with key brands including Magic, Kiss, Absolute Radio, Key 103, Metro Radio and Clyde 1.

Bauer holds AM and FM analogue licences, local DAB multiplex licences, has joint venture interests in several other multiplex licences (including, 30% in Sound Digital, 50% of CE Digital, minority shares in DRG - London and Switch Digital - London plus recently acquired interests in the MuxCo network), content licences for DAB locally and nationally and content licences for radio services for digital television. 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

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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

61. The BDR strategy is:

 To establish an efficient DAB multiplex business that maximises opportunities for the BBC and existing commercial operators, as well as new national, local and community focused services, using either DAB or DAB+ technology, broadening choice and creating new commercial opportunities  To re-emphasise local radio as an important part of radio’s digital future  To provide a return on investment

Bauer Media UK – Communities and Digital Strategy

62. Bauer Digital Radio is a 100% subsidiary of Bauer Radio, itself a subsidiary of Bauer Media UK; an entertainment network of high-quality, high-profile, multi-platform brands. The business became part of the Bauer Media Group, Europe’s largest privately-owned media group, in 2008. Founded in Hamburg in 1875 and now in its fifth generation of family ownership, Bauer Media Group operates in 19 countries and has 11,000 employees worldwide.

63. In the UK, Bauer reaches over 25 million consumers. The Bauer Radio portfolio includes 22 heritage local radio stations including CFM, Radio Clyde, Radio City, Metro FM and Hallam FM, and national stations such as Kiss, Magic and Absolute Radio. Earlier this year, Bauer Radio launched three new national stations - Scala Radio offering a modern take on classical music, Country Hits Radio and Greatest Hits Radio.

64. Bauer also publishes magazine brands including heat, Grazia, Empire, Motor Cycle News, TV Choice and Take a Break. The scale of Bauer, coupled with the breadth of its portfolio, gives the group an advantage over pure play magazine or radio competitors. In an era where audiences are ever harder to categorise, Bauer builds strong cultural connections, drawing people together with the things that they really care about. Bauer brands become the lens through which Bauer audiences see the world.

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65. Bauer Radio services reach over 18 million listeners every week and account for 32% of total commercial radio listening. Within that total, Bauer Radio local services reach almost 7 million listeners a week.

66. Listeners are attracted to Bauer services not just by the range of music played but by the strong line-up of presenter talent, both locally and nationally, and a commitment to local news and information. In an era of fake news and unverified stories on social media, listeners value and trust the news Bauer Radio provides, which is required to be accurate, balanced and truthful.

67. Bauer Radio stations employ 80 journalists who live and breathe the areas they cover. They break stories and undertake investigative local journalism and provide significant volumes of local news and will continue to do so, regardless of any regulatory requirement. Indeed, Bauer Radio are supportive of new regulation to protect provision by the industry in this important area.

68. Bauer Radio has invested heavily in DAB digital radio, operating 12 local multiplexes through Bauer Digital Radio and are a partner in three more. In 2015, Bauer Radio became a major shareholder in the Sound Digital national multiplex, operating nine national radio services and expanding the output of its local services to provide spin- off services, each of which provides local news and information.

69. Bauer Radio makes an important contribution to the local and national economy, not only by providing employment but also by supporting local businesses with, for example, a “million pounds of work” working with local business and jobseekers, as well as work with independent producers and the broader creative industry.

70. Bauer Radio stations employ over 1,100 people across the UK and are committed to developing talent through training and by reflecting the diversity of the UK, bringing new people into radio.

71. Bauer Radio loves the communities that it operates within. The Bauer Academy provides multimedia training that makes a remarkable difference to individuals and communities, and ‘Cash for Kids’ responds to the needs of children in its communities, helping them live life to the full and achieve their individual potential.

72. Bauer Radio does all of this as a company which is a morally robust commercial enterprise, seeking to grow its business.

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The Business Plan and its Objectives

73. The key objectives underlying the BDR Cumbria business plan are:

 To operate a multiplex that offers the latest DAB technology to content providers  To offer a wide choice of programme services which address local tastes and interests, broaden choice and (where possible) to increase plurality.  To promote and maximise take-up of digital radio receivers by working with content providers and industry bodies such as Digital Radio UK.  To operate in a manner ensuring fair and effective competition.  To operate a viable and sound financial business.

74. BDR is well resourced both technically and financially to support the needs of content providers.

The Board has the following responsibilities:

 The company's business strategy  Monitoring and reviewing trading performance  Appointing and contracting with content providers  Developing multiplex bandwidth policies  Developing pricing structures  Supervision of multiplex management  Regulatory compliance

(i) The network construction phase

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

Planning – the design of the transmission plan has taken into account the requirements of content providers, BBC and commercial, to ensure that key population centres and roads are well covered. A number of iterations have been produced before settling on an effective and commercially prudent plan. Arqiva has provided support during this stage and will liaise where necessary with Ofcom on detailed transmission matters on behalf of BDR.

Building and Testing – Following a successful award, BDR will work with Arqiva to finalise the transmission plan, contract for transmission services and prepare milestones to the launch of the multiplex. This will include international clearance, the build timetable and content provider installations. As an established transmission service provider, Arqiva has existing resource and the infrastructure to build the proposed transmission network efficiently and to an agreed timetable.

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(ii) The operational start-up phase

76. The operational start-up phase will include, contracting with content providers, advising on the installation of contribution services from content providers’ studios; liaising with Ofcom over the build process; ensuring regulatory issues are followed, including the issuing or amendment of DSP licences; and liaising with Digital Radio UK and content providers on marketing activity, including ensuring the postcode checker is up to date with the new coverage and service information.

(iii) Marketing

77. Bauer Radio is a shareholder and board member of Digital Radio UK, and inputs into nationally focused campaigns which can also be utilised around the launch of the multiplex.

78. BDR will work with the content providers to help co-ordinate locally focused marketing of digital radio and the content services on the multiplex, recognising that content providers are likely to undertake their own brand marketing highlighting their appearance on DAB. A key local promotion tool will be analogue services, such as BBC Cumbria and CFM, using their airtime to promote their presence on DAB.

(iv) Ongoing operation of the service

79. Day to day multiplex management includes:

 Overseeing bit rate variations, enhancements or projects required by content providers, such as temporary services and data developments.  Working with content providers and Arqiva to maximise multiplex functionality and efficiency.  Monitoring and fault reporting.

BDR has an established administrative centre based in Peterborough which will undertake purchase and sales ledgers, IT, secretarial and legal.

Arqiva has considerable resource and infrastructure to support the multiplex. Its 24- hour operations centre at Emley Moor will control multiplex re-configurations. Multiplex reconfiguration will be undertaken in line with regulation and contractual agreements with content providers.

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(b) Funding Detail the sources of finance that will be used to fund the licence, under the following headings:

80. BDR Cumbria will be funded by its operation in Cumbria and, if necessary, by the wider BDR business and its parent Bauer Radio. At December 2017, as reported in the BDR statutory accounts, the company has net assets in excess of £7m. As such, there is no requirement for BDR to seek any specific loans, grants, donations or bank overdrafts.

Source of finance - BDR £ Share capital £3,200,000 Loan stock 0 Leasing/HP facilities (capital value) 0 Bank overdraft 0 Grants and donations 0 Other (existing trading operations) 0 Total £3,200,000

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

81. A letter of investment from Bauer Radio Limited is provided in confidence in Part B.

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

82. The accounts for Bauer Radio Limited are provided under separate cover.

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

83. The establishment and operations of BDR Cumbria will be covered by existing financial resources. No additional funding is required.

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.

84. A letter of investment from Bauer Radio Limited is provided in confidence in Part B.

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(c) Financial Projections 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 Independent Accounts, addressed to the board of directors of the applicant, confirming the results of agreed-upon procedures carried out under the International Standard on Related Services (ISRS) 4400; Engagements to Perform Agreed-Upon Procedures Regarding Financial Information. The letter should confirm: g) Whether the projections contained in the financial model have been accurately compiled on the basis of the assumptions listed and explanatory notes accompanying the projections; and h) Whether the assumptions listed and explanatory notes follow International Financial Reporting Standards and Generally Accepted Accounting Policies.

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: https://www.ofcom.org.uk/manage-your-licence/radio-broadcast-licensing/apply-for-a-radiobroadcast- licence 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.

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.

85. Response is submitted in confidence.

(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.

86. Response is submitted in confidence.

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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. d) Details of any arrangements with particular providers which the applicant considers to be commercially sensitive may be submitted in confidence.

87. BDR Cumbria proposes to launch with 13 digital sound programme services, comprising a mix of familiar well-loved local and national brands which taken as a whole will appeal to a wide variety of tastes and interests:

CFM Analogue simulcast Greatest Hits Radio Digital only Country Hits Radio Digital only Planet Rock Digital only Scala Radio Digital only Absolute Radio 80s Digital only Absolute Radio 90s Digital only Absolute Classic Rock Digital only Magic Chilled Digital only Magic Soul Digital only Mellow Magic Digital only Jazz FM Digital only BBC Radio Cumbria Analogue simulcast (reserved capacity)

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88. The following tables provide the information requested for each service under Q11 a) to d).

Service CFM

Format Description, A simulcast of CFM (West Cumbria licence AL177 and Carlisle licence AL149) playing including local tastes the biggest hits and the biggest throwbacks with local news, travel and information and interests for Carlisle and Cumbria.

Target Audience CFM is the number 1 station in its TSA, with 84,100 adults listening each week, representing 33.2% reach. It has broad appeal across all age groups, with principal listening amongst 25-54s (57.1%), although still strong amongst 15-24s and 55-64s. It also has a slight male profile (50.3%, against a TSA profile of 48.9%).

Hours of Broadcast 24 hours

Agreement Agreement has been reached with Bauer Radio who holds a local DSPS licence.

Service Greatest Hits Radio

Format Description, A genre based music station playing classic hits led pop music, with speech content including local tastes related to the music. Presenter led between 06:00 and 01:00, with news bulletins and interests broadcast hourly between 06:00 and 19:00, with additional headlines in weekday breakfast and evening drive periods. Bulletins contain a mix of news, sport, weather and entertainment news. At weekends, bulletins are broadcast between 07:00 and 13:00.

Target Audience Greatest Hits Radio is programmed for an over 40s audience. Greatest Hits Radio currently (Q2 2019) has a weekly audience of 1,103,000 (2% reach), with average hours of 7.3 per listener.

Hours of Broadcast 24 hours