If your organisation uses two-way radios, understanding Ofcom business radio licences is essential. A licence is not just a formality — it is a legal requirement in most cases and plays a major role in how reliable your communication system will be.
In some cases, licence-exempt radios (such as PMR446 walkie talkies) can be used without an Ofcom licence, but they come with limits on power and range and you cannot use repeaters. If your radios are business-critical, a licensed system is usually the safer choice for reliability and compliance.
In the UK, radio spectrum is regulated by Ofcom. This applies to organisations and operators using licensed radio spectrum — including broadcasters, mobile network operators and businesses using two-way radios.
We help businesses across the UK choose, apply for and manage their Ofcom radio licences — ensuring systems are legal, reliable and fit for purpose.
This guide explains:
- The different types of Ofcom radio licences
- What affects the cost
- Which licence is right for your application
What is an Ofcom business radio licence?
An Ofcom business radio licence allows your organisation to legally use radio channels for communication.
Different licence types control:
- Whether your channels are shared with others or planned for your system
- Where you are allowed to use your radios
- How your system can be set up
A licence gives you permission to operate — it does not determine your range. Range depends on equipment and environment, but licence conditions (like power limits and whether you can use a repeater) can affect what’s possible.
Quick Answer: Do I Need a Licence?
- Yes (most organisations): You will need a licence if your communication is important, you need more range or power, and you want to avoid interference from consumers using PMR446 licence-free radios.
No (some basic radios): Licence-free radios (PMR446) can be used, but they are limited
PMR446 Licence-free radios:
- Have low power
- Use built-in aerials
- Cannot use repeaters
- Have limited range and reliability
Why You Need an Ofcom Radio Licence
A business radio licence ensures:
- Legal compliance – Most business radio frequencies require a licence
- Reliable communication – Reduced interference from (and to) other users
- Professional performance – Especially in busy environments
- Scalability – Your system can grow with your organisation
Without the correct licence, even good radios can suffer from interference and inconsistent performance.
Quick Answers
- One site, basic comms – Simple Site or Simple UK
- Nationwide roaming, basic comms – Simple UK
- One site, reliability matters or using a repeater – Technically Assigned
- Multi-site or wide-area operations – Area Defined
- Not sure – speak to us, we’ll point you to the right licence type
Types of Ofcom Business Radio Licences (Explained Simply)
Simple UK Licence
What it means:
You are allowed to use shared radio channels anywhere in the UK. You’ll be sharing a designated set of nationwide business radio frequencies with other Simple UK users. In busy areas, you may need to coordinate informally with nearby users.
Key points:
- Handheld radios only (no base stations or repeaters)
- The maximum permitted transmit power is 5 watts
- Permits you to operate anywhere in the UK (it does not provide nationwide coverage)
- Uses shared frequencies
- No setup or planning required required
- Other users may be on the same channels
What to expect:
Flexible and easy to use, but you may hear other users and experience interference in busy areas.
Simple Site Licence
What it means:
A Simple Site licence typically covers a small area (around 1 km or less) and you need one licence per site. You are using shared radio channels at one specific site at a lower power.
Key points:
- Limited to one defined site or location
- Channels are shared with others nearby
- Typically suited to smaller coverage areas (rather than wide-area coverage)
- The maximum permitted transmit power is 2 watts for base and mobile stations, unless your licence schedule states otherwise.
- No protection from interference
- No individual planning or coordination by Ofcom
What to expect:
Suitable for smaller, contained sites. Not ideal where wide coverage or guaranteed reliability is required.
Important: A Simple Site licence does not provide dedicated channels or guaranteed performance.
Technically Assigned Licence
What it means:
Your radio system is given channels (frequencies) that are planned specifically for your location and requirements.
Key points:
- Specific frequencies are assigned to your site
- Coordinated to reduce interference
- Can include repeaters (signal boosters) for extended coverage
- Choice of shared or exclusive channels (with exclusive channels typically costing more)
- Ofcom can investigate and assist with interference issues where appropriate
- Annual licence
What to expect:
A reliable, managed system designed around your site.
Important: No radio system is completely free from interference, but with this licence, Ofcom is better able to investigate and advise on interference problems if they occur.
Area Defined Licence
What it means:
You operate a radio system across a larger geographic area.
Key points:
- Covers a defined region
- Suitable for multi-site or wide-area operations
- Supports complex systems
- Costs vary depending on how the system is set up. Fees start from £75 per year and rise depending on the band and coverage requested.
- Annual licence
What to expect:
A scalable network solution for larger organisations.
Typically used where more control and consistency is needed across a wider area. Ofcom can investigate and advise with interference issues where necessary.
Suppliers Light
Ofcom also offers a Suppliers Light licence for radio suppliers and hire companies, but most end-user organisations will be choosing from the four licence types above.
Real-World Examples
-
Simple UK Licence
A retail business uses radios in multiple locations. Flexibility is more important than guaranteed performance. -
Simple Site Licence
A small depot or workshop uses radios within a limited area where coverage requirements are modest. -
Technically Assigned Licence
A warehouse, school, or construction site needs reliable communication across a large or busy environment where messages must get through clearly every time. -
Area Defined Licence
A logistics or utilities company operates across a region and needs consistent communication between sites and mobile teams.
A Simple Analogy: Radios and Roads
Think of radio licences like using roads:
-
Simple UK Licence = Public roads anywhere in the UK
You can travel widely, but you’re sharing the road with other users. -
Simple Site Licence = Public roads inside one small town
You’re limited to one location and your “vehicle” (signal) is kept smaller. You’re still sharing the road, just in a smaller area. -
Technically Assigned Licence = A lane that’s planned for you
Your route is planned and coordinated to reduce congestion. Depending on what’s available in your area, you may be sharing the lane with a few other users or you may have a lane reserved just for you. -
Area Defined Licence = A planned network for your organisation
You can operate across a wider area with parameters designed around your coverage needs. Some routes may be shared, others can be reserved, depending on what’s available and what you apply for.
Key point: No road is ever completely empty — but higher-tier licences mean the road is managed and coordinated so that problems can be addressed.
Simple UK vs Simple Site (Clear Difference)
- Simple UK: Use shared channels anywhere in the UK. Handheld radios only.
- Simple Site: Use shared channels at one site, typically at lower power. Base stations are allowed.
Neither licence provides protection from interference.
Ofcom Business Radio Licence Comparison (UK)
Use this table to choose the right Ofcom licence for your two-way radio system based on coverage, reliability, and interference risk.
| Feature | Simple UK | Simple Site | Technically Assigned | Area Defined |
|---|---|---|---|---|
| Where you can operate | Anywhere in UK | One named site | One named site | Defined geographic area |
| Frequencies | Shared | Shared | Planned/assigned (may be shared or exclusive depending on requirements and availability) | Planned/assigned across an area (often multi-site/network) |
| Power Levels | Moderate | Lower | Configurable (can support higher power where appropriate) | Configurable |
| Interference Protection | Self managed | Self managed | Coordinated (Ofcom-planned) | Coordinated (Ofcom-planned) |
Interference support | No formal protection | No formal protection | Better interference management due to planning | Better interference management due to planning |
| Typical Reliability | Medium | Medium | High | Very High |
| Typical Use | Retail, events, small teams | Small sites, light use | Warehouses, schools, construction, larger sites | Utilities, logistics, multi-site operations |
| Licence Duration | 5 years | 5 years | 1 year | 1 year |
| Cost Category | Low | Low | Medium–High | High |
Typical Cost | £75.00 for 5 years | £75.00 for 5 years | from £75.00 per year (min. annual fee) | Variable |
Costs shown are typical starting points and depend on system parameters. For Technically Assigned and Area Defined licences, fees depend on factors like location, frequency band, antenna height, power and channel width. Always confirm current fees and requirements with Ofcom.
Not sure which licence you need? We’ll recommend the right option based on your site, coverage and usage.
Best for:
- Simple UK: Nationwide roaming, small teams, lowest admin
- Simple Site: One small site, low power, basic comms
- Technically Assigned: One site where reliability matters, repeaters, larger coverage
- Area Defined: Multi-site or wide-area operations needing coordinated coverage
As a rule of thumb:
- If you’re using a repeater or need predictable coverage across a site, start with Technically Assigned.
- If you need simple nationwide use and can tolerate shared channels, Simple UK is usually the quickest route.
What Affects the Cost of an Ofcom Licence?
Simple licenses have a fixed cost, but other licence types have variable pricing. Licence pricing reflects how much your system uses and impacts the radio spectrum.
Key factors include:
- Type of licence
- How far your signal needs to travel
- Power of your system
- Height of antennas
- Location (busy areas cost more)
- Number of channels required
Important: The number of radios (handsets) you use does not affect the licence cost.
Licence Duration Explained
Business Radio licences are issued indefinitely, but fees are paid every five years for Simple UK and Simple Site licences, and annually for Technically Assigned and Area Defined licences.
- Simple UK Licence: 5 years
- Simple Site Licence: 5 years
- Technically Assigned Licence: 1 year
- Area Defined Licence: 1 year
Frequently Asked Questions
Licensing basics
Do I need an Ofcom licence for two-way radios?
If you use licensed business radio frequencies, your system must be covered by an appropriate Ofcom licence. Licence-exempt radios like PMR446 are an exception, but they have limitations and are not suitable for every site.
Do all radio users need a licence?
No. The licence is held by the organisation, not each individual user.
Do I need one licence for every radio?
No. One licence can cover your system or site, regardless of how many radios you use.
What is the difference between Simple UK and Simple Site?
Simple UK is for shared channels anywhere in the UK. Simple Site is for shared channels at one specific site, typically within a small local area.
Coverage and reliability
Does a licence give me nationwide coverage?
No. Coverage depends on your radios, your environment, and how your system is designed.
Are technically assigned systems interference-free?
No system is completely free from interference, but problems are less likely and easier to deal with because the frequencies are planned and assigned for your location.
Can one site have more than one licence?
Yes. Some sites use a mix of licence types, depending on how their system is set up.
Costs and renewals
How much does an Ofcom business radio licence cost?
Simple UK and Simple Site licences are £75 for five years. Technically Assigned and Area Defined licences are charged annually and start from a minimum annual fee of £75, with costs depending on system parameters.
How long does an Ofcom licence last?
Licences are issued indefinitely, but you pay the fee every five years for Simple UK and Simple Site, and annually for Technically Assigned and Area Defined.
Final Thought
Your Ofcom licence does not create range or coverage — it sets the rules for how your system can operate.
The more important your communication is, the more important it is to move away from shared channels.
Need Help Choosing or Applying for a Licence?
Choosing the right Ofcom radio licence can feel confusing — especially when the differences affect reliability, compliance, and long-term performance.
The good news is, you don’t have to work it out alone.
We regularly help organisations:
- Choose the right licence
- Handle applications
- Set up systems correctly
- Manage licences over time
Whether you’re setting up a new system or reviewing an existing one, we’ll make sure your radios are legal, reliable, and fit for purpose.
Get in touch today and we’ll recommend the right licence for your site.