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 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.
This guide explains:
- The different types of Ofcom radio licences
- What affects the cost
- Which licence is right for your application
Licence-exempt radios (PMR446): when you might not need an Ofcom licence
- PMR446 is licence-exempt but has limits (low power, fixed antenna, no repeaters)
- It’s fine for light or leisure use but can be congested and unreliable in busy areas
- If comms are business-critical, licensed options are usually better
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 other users
- Professional performance – Especially in busy environments
- Scalability – Your system can grow with your organisation
Without the correct licence, even high-quality 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.
Key points:
- Permits operation throughout the UK (not coverage across the UK)
- Uses shared frequencies
- No setup or planning 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:
You are using shared radio channels at one specific site, typically at lower power.
Key points:
- Limited to a defined location
- Uses shared frequencies
- Lower power levels than higher-tier licences
- No protection from interference
- No frequency coordination by Ofcom
What to expect:
Suitable for smaller, contained sites. Not ideal where strong coverage or reliability is critical.
Important: A Simple Site licence does not provide dedicated channels or guaranteed performance.
Technically Assigned Licence
What it means:
Your radio system is assigned frequencies that are planned specifically for your location and requirements.
Key points:
- Frequencies assigned to your site
- Coordinated to reduce interference
- Can include repeaters for extended coverage
- Choice of shared or exclusive channels (cost dependent)
- 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 more able to investigate harmful interference and coordinate resolution when channels are planned/assigned.
Area Defined Licence
What it means:
You operate a radio system across a defined geographic area.
Key points:
- Covers a defined region
- Suitable for multi-site or wide-area operations
- Supports complex systems
- Annual licence
What to expect:
A scalable network solution for larger organisations.
Ofcom can support with interference issues where necessary.
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. -
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 anywhere, but you’re sharing with everyone else. -
Simple Site Licence = Roads within a small private area
You are limited to one place, and your “vehicle” (signal) is smaller. -
Technically Assigned Licence = A managed lane
Your route is planned to avoid congestion, and issues can be dealt with. -
Area Defined Licence = Your own road network
You control how routes are used across a wider area.
Key point: No road is ever completely empty — but higher-tier licences mean the road is managed and supported.
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 and repeaters are allowed.
Neither licence provides Ofcom support with interference issues.
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 | Variable |
Costs shown are typical starting points and depend on system parameters. Always confirm current fees and requirements with Ofcom.
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 the radio spectrum.
Key factors include:
- Licence type
- Coverage footprint (how far your signal travels)
- Transmit power
- Antenna height
- Geographic location (higher demand = higher cost)
- Number of frequencies required
Important: The number of radios (handsets) you use does not affect the licence cost.
Licence Duration Explained
- Simple UK Licence: 5 years
- Simple Site Licence: 5 years
- Technically Assigned Licence: 1 year
- Area Defined Licence: 1 year
Light licences are multi-year, while technically planned licences are typically annual.
Frequently Asked Questions
Do all radio users need a licence?
Use of licensed radio spectrum must be covered by an appropriate licence, but this does not mean each person needs their own licence. The licence is usually held by the organisation for the system or site.
Do I need one licence for every radio?
No. One licence can cover your system, regardless of how many radios you use.
Can one site have more than one licence?
Yes. Some organisations use a combination of licences — for example, a Simple UK licence for shared channels and a Technically Assigned licence for a repeater or more controlled communication.
Does a licence give me nationwide coverage?
No. It gives you permission to operate. Coverage depends on your equipment and environment.
Are technically assigned systems interference-free?
No system is completely immune, but interference is significantly reduced and can be investigated by Ofcom.
Final Thought
Your Ofcom licence doesn’t create coverage — it controls how your system operates within the radio spectrum.
The more important your communication is, the more important it is to move away from shared, unprotected 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:
- Identify the correct licence for their application
- Handle the full licence application process
- Ensure systems are set up correctly from the start
- Provide ongoing licence management and support
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 to discuss your requirements — we’re here to help.