Legalize / United Kingdom / Public General Act

Broadcasting Act 1996

Type Public General Act

Publication 1996-07-24

Last updated 2026-01-01

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(3) The fees required to be paid to OFCOM by virtue of subsection (1)(c) shall be in accordance with such tariff as may from time to time be fixed by OFCOM ; ...

(4) A tariff fixed under subsection (3) may specify different fees in relation to different cases or circumstances; and OFCOM shall publish every such tariff in such manner as they consider appropriate.

(5) Where the holder of any licence—

(a) is required by virtue of any condition imposed under this Part to provide OFCOM with any information, and

(b) in purported compliance with that condition provides them with any information which is false in a material particular,

he shall be taken for the purposes of sections 59, 62 and 66 of this Act and section 111 of the 1990 Act to have failed to comply with that condition.

(6) Nothing in this Act which authorises or requires the inclusion in a licence of conditions relating to any particular matter or having effect for any particular purpose shall be taken as derogating from the generality of subsection (1).

Restrictions on holding of licences under Part II

44

(1) OFCOM shall do all that they can to secure—

(a) that a person does not become or remain the holder of a licence if he is a person who is a disqualified person in relation to that licence by virtue of Part II of Schedule 2 to the 1990 Act (as amended by this Act); and

(b) that a person does not become the holder of a licence if requirements imposed by or under Schedule 14 to the Communications Act 2003 would be contravened were he to do so; and

(2) OFCOM may accordingly—

(a) require any applicant for a licence to provide them with such information as they may reasonably require for the purpose of determining—

(i) whether he is such a disqualified person as is mentioned in subsection (1)(a),

(ii) whether any such requirements as are mentioned in subsection (1)(b) would preclude them from granting a licence to him, and

(iii) if so, what steps would be required to be taken by or in relation to him in order for any such requirements to be complied with;

(b) revoke the award of a licence to a body where a relevant change takes place after the award, but before the grant, of the licence;

(c) make the grant of a licence to any person conditional on the taking of any specified steps that appear to them to be required to be taken as mentioned in paragraph (a)(iii);

(d) impose conditions in any licence enabling them to require the licence holder, if a body corporate, to give to them advance notice of proposals affecting—

(i) shareholdings in the body, or

(ii) the directors of the body,

where such proposals are known to the body;

(da) impose conditions in a licence requiring the licence holder, if a body corporate, to give OFCOM notice, after they have occurred and irrespective of whether proposals for them have fallen to be notified, of changes, transactions or events affecting—

(i) shareholdings in the body; or

(ii) the directors of the body;

(db) impose conditions in a licence enabling OFCOM to require the licence holder to provide them with such information as they may reasonably require for determining—

(i) whether the licence holder is a disqualified person in relation to that licence by virtue of Part 2 of Schedule 2 to the 1990 Act; or

(ii) whether any such requirements as are mentioned in subsection (1)(b) have been and are being complied with by or in relation to the licence holder;

(e) impose conditions in any licence enabling them to give the licence holder directions requiring him to take, or arrange for the taking of, any specified steps appearing to them to be required to be taken in order for any such requirements as are mentioned in subsection (1)(b) to be complied with.

(3) Where OFCOM —

(a) revoke the award of any licence in pursuance of subsection (2)(b), or

(b) determine that any condition imposed by them in relation to any licence in pursuance of subsection (2)(c) has not been satisfied,

any provisions of this Part relating to the awarding of licences of the kind in question shall (subject to subsection (4)) have effect as if the person to whom the licence was awarded or granted had not made an application for it.

(4) Those provisions shall not so have effect if OFCOM decide that it would be desirable to publish a fresh notice under this Part in respect of the grant of a licence, or (as the case may be) a further licence, to provide the service in question.

(5) Every licence shall include such conditions as OFCOM consider necessary or expedient to ensure that where—

(a) the holder of the licence is a body, and

(b) a relevant change takes place after the grant of the licence,

OFCOM may revoke the licence by notice served on the holder of the licence and taking effect forthwith or on a date specified in the notice.

(6) OFCOM shall not serve any such notice on the licence holder unless—

(a) OFCOM have notified him of the matters constituting their grounds for revoking the licence and given him a reasonable opportunity of making representations to them about those matters, and

(b) in a case where the relevant change is one falling within subsection (7)—

(i) they have also given him an opportunity of complying with the requirements imposed by or under Schedule 14 to the Communications Act 2003 within a period specified in the notification, and

(ii) the period specified in the notification has elapsed.

(7) A relevant change falls within this subsection if it consists only in one or more of the following—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) a change in the national market share (within the meaning of Part 1 of Schedule 14 to the Communications Act 2003 ) of one or more national newspapers (within the meaning of that Part of that Schedule), or

(c) a change in the local market share (within the meaning of section 5 of the Broadcasting Act 1990 ) in a particular area of one or more local newspapers (within the meaning of Part 1 of Schedule 14 to the Communications Act 2003 ).

(8) In this section “relevant change”, in relation to a body to which a licence has been awarded or granted, means—

(a) any change affecting the nature or characteristics of the body,

(b) any change in the persons having control over or interests in the body, or

(c) any other change giving rise to a disqualification under Part 2 of Schedule 2 to the 1990 Act or a contravention of a requirement imposed by or under Schedule 14 to the Communications Act 2003,

being (in any case) a change which is such that, if it fell to OFCOM to determine whether to award the licence to the body in the new circumstances of the case, they would be induced by the change to refrain from so awarding it.

Radio multiplex services

Assignment of frequencies by Secretary of State

45

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

National radio multiplex licences

46

(1) Where OFCOM propose to grant a licence to provide a national radio multiplex service, they shall publish, in such manner as they consider appropriate, a notice—

(a) stating that they propose to grant such a licence,

(b) specifying the frequency on which the service is to be provided,

(c) specifying, in such manner as OFCOM consider appropriate, the area of the United Kingdom in which the frequency is to be available,

(d) where digital capacity on the frequency is reserved in pursuance of a condition under section 48 for the broadcasting of a simulcast radio service, stating that fact and specifying the capacity reserved and the identity of the national service or services concerned,

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) inviting applications for the licence and specifying the closing date for such applications,

(g) specifying the fee payable on any application made in pursuance of the notice, and

(h) stating whether any percentage of multiplex revenue for each accounting period would be payable by an applicant in pursuance of section 55 if he were granted the licence and, if so, specifying that percentage.

(2) Unless an order under section 55(2) is in force—

(a) the consent of the Secretary of State shall be required for so much of the notice as relates to the matters specified in subsection (1)(h), and

(b) OFCOM may if they think fit (with that consent) specify under subsection (1)(h)—

(i) different percentages in relation to different accounting periods falling within the period for which the licence would be in force, and

(ii) a nil percentage in relation to any accounting period so falling.

(3) When publishing a notice under subsection (1), OFCOM —

(a) shall publish with the notice general guidance as to requirements to be met by proposals as to the matters referred to in subsection (4)(b)(i) and (ii) ..., and

(b) may publish with the notice such other general guidance as they consider appropriate.

(4) Any application made in pursuance of a notice under subsection (1) must be in writing and accompanied by—

(a) the fee specified in the notice under subsection (1)(g),

(b) a technical plan relating to the service which the applicant proposes to provide and indicating—

(i) the parts of the area specified under subsection (1)(c) which would be within the coverage area of the service,

(ii) the timetable in accordance with which that coverage would be achieved, and

(iii) the technical means by which it would be achieved,

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(da) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g) such information as the Authority may reasonably require as to the applicant’s present financial position and his projected financial position during the period for which the licence would be in force, and

(h) such other information as OFCOM may reasonably require for the purpose of considering the application.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) At any time after receiving such an application and before determining it, OFCOM may require the applicant to furnish additional information under any of paragraphs (b) to (h) of subsection (4).

(7) Any information to be furnished to OFCOM under this section shall, if they so require, be in such form or verified in such manner as they may specify.

(8) OFCOM shall, as soon as reasonably practicable after the date specified in a notice under subsection (1) as the closing date for applications, publish in such manner as they consider appropriate—

(a) the following matters, namely—

(i) the name of every person who has made an application to them in pursuance of the notice, and

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) such other information connected with his application as OFCOM consider appropriate; and

(b) a notice—

(i) inviting representations to be made to them with respect to any of the applications, and

(ii) specifying the manner in which, and the time by which, any such representations are to be so made.

Award of national radio multiplex licences

47

(1) Where OFCOM have published a notice under section 46(1), they shall in determining whether, or to whom, to award the national radio multiplex licence in question, have regard to the extent to which, taking into account the matters specified in subsection (2) and any representations received by them in pursuance of section 46(8)(b) with respect to those matters, the award of the licence to each applicant would be calculated to promote the development of digital sound broadcasting in the United Kingdom otherwise than by satellite.

(2) The matters referred to in subsection (1) are—

(a) the extent of the coverage area (within the area specified in the notice under section 46(1)(c)) proposed to be achieved by the applicant as indicated in the technical plan submitted by him under section 46(4)(b),

(b) the timetable proposed by the applicant under section 46(4)(b)(ii) ...,

(c) the ability of the applicant to establish the proposed service and to maintain it throughout the period for which the licence will be in force, and

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) whether, in contracting or offering to contract with persons providing digital sound programme services , television licensable content services or digital additional services, the applicant has acted in a manner calculated to ensure fair and effective competition in the provision of such services.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Where OFCOM have awarded a national radio multiplex licence to any person in accordance with this section, they shall, as soon as reasonably practicable after awarding the licence—

(a) publish in such manner as they consider appropriate—

(i) the name of the person to whom the licence has been awarded, and

(ii) such other information as OFCOM consider appropriate, and

(b) grant the licence to that person.

Reservation of capacity for independent national broadcasters

48

(1A) OFCOM must ensure that the conditions included in national radio multiplex licences (taken together) secure that an amount of digital capacity on the multiplex frequencies is reserved for every independent national broadcaster for the broadcasting of a simulcast radio service provided by that broadcaster.

(1B) Where the conditions of a licence for a national radio multiplex service reserve capacity on the frequency made available for that service for the broadcasting of a simulcast radio service provided by an independent national broadcaster, those conditions must also include the condition specified in subsection (1C).

(1C) That condition is the condition that OFCOM consider appropriate for securing that, in consideration of the making by the independent national broadcaster of the payments which —

(a) are agreed from time to time between him and the licence holder, or

(b) in default of agreement, are determined under this section,

the licence holder uses, for the broadcasting of a simulcast radio service provided by that broadcaster, such of the reserved digital capacity as may be requested, from time to time, by that broadcaster.

(1D) Where conditions are included under this section in a national radio multiplex licence reserving capacity for an independent national broadcaster, OFCOM may include conditions relating to the broadcasting of the simulcast radio service in the licence for the national service provided by that broadcaster.

(4) Where the holder of a national radio multiplex licence and an independent national broadcaster fail to agree as to the payments to be made under a condition included in the licence in accordance with subsection (1C) , either of them may refer the matter to OFCOM for their determination.

(5) Before making a determination under subsection (4), OFCOM shall give the licence holder and the independent national broadcaster an opportunity of making representations to OFCOM about the matter.

(6) In making any determination under subsection (4), OFCOM shall have regard to—

(a) the expenses incurred, or likely to be incurred, by the licence holder in providing the national radio multiplex service and in broadcasting the simulcast radio service in question, and

(b) the terms on which persons providing national radio multiplex services contract with persons providing national digital sound programme services for the broadcasting of those services.

(7) In this section “the multiplex frequencies” means the frequencies made available for the purposes of licensed national radio multiplex services.

Duty of Authority to reserve digital capacity for certain purposes of BBC

49

(1) In exercising their powers to grant local radio multiplex licences, OFCOM shall reserve to the BBC such digital capacity as OFCOM consider appropriate in all the circumstances with a view to enabling every BBC local radio service and every BBC radio service for Wales, Scotland or Northern Ireland to be received in digital form within a coverage area which, so far as reasonably practicable, corresponds with the coverage area for that service as provided otherwise than in digital form.

(2) The circumstances to which OFCOM may have regard in performing their duty under subsection (1) include the likely demand for digital capacity by persons providing or proposing to provide local digital sound programme services.

(3) Where OFCOM propose to grant a licence to provide a local radio multiplex service, they shall notify the BBC of OFCOM ’s proposals for reserving to the BBC digital capacity on the frequency in respect of which the licence is to be granted in respect of the area or locality in which it is to be granted.

(4) If the BBC do not give their consent to the proposals within such period as OFCOM may specify in their notice under subsection (3), OFCOM shall determine—

(a) whether any digital capacity is to be reserved to the BBC on the grant of the licence, and

(b) if so, the amount of that capacity.

(5) Before making any determination under subsection (4), OFCOM shall give the BBC an opportunity of making representations to them about their proposals.

(6) Where a local radio multiplex licence is granted in respect of a frequency and area or locality in respect of which digital capacity is reserved in pursuance of this section, the licence shall include such conditions as appear to OFCOM to be appropriate for the purpose of securing that, in consideration of the making by the BBC of such payments as are from time to time agreed between the holder of the licence and the BBC or (in default of agreement) determined under this section , the holder of the licence uses such digital capacity as may from time to time be requested by the BBC (not exceeding the amount so reserved) for the broadcasting of services provided by the BBC.

(7) Where the holder of the licence and the BBC fail to agree—

(a) the payments to be made under a condition included in the licence in accordance with subsection (6), or

(b) the other terms that are to apply in relation to the use of digital capacity in accordance with such a condition,

either of them may refer the matter to OFCOM for determination.

(8) Before making a determination under subsection (7), OFCOM must give the licence holder and the BBC an opportunity of making representations to them about the matter.

(9) In making any determination under subsection (7), OFCOM shall have regard to—

(a) the expenses incurred, or likely to be incurred, by the licence holder in providing the local radio multiplex service in question, and

(b) the terms on which persons providing local radio multiplex services contract with persons providing television licensable content services or local digital additional services for the broadcasting of those services.

Local radio multiplex licences

50

(1) Where—

(a) the BBC have given their consent to proposals made to them under subsection (3) of section 49, or

(b) OFCOM have made a determination under subsection (4) of that section,

OFCOM shall publish, in such manner as they consider appropriate, a notice under subsection (2).

(2) A notice under this subsection is a notice—

(a) stating that the Authority propose to grant a local radio multiplex licence,

(b) specifying the frequency on which the service is to be provided,

(c) specifying, in such manner as OFCOM consider appropriate, the area or locality in the United Kingdom in which it is to be available,

(d) stating whether in pursuance of a determination under section 49(4) any digital capacity on the frequency in that area or locality is to be reserved for the broadcasting in digital form of one or more BBC radio services and, if so, specifying the capacity reserved and the identity of the BBC radio services concerned,

(e) inviting applications for the licence and specifying the closing date for such applications, and

(f) specifying the fee payable on any application made in pursuance of the notice.

(3) When publishing a notice under subsection (2), OFCOM —

(a) shall publish with the notice general guidance as to requirements to be met by proposals as to the matters referred to in subsection (4)(b)(i) and (ii), and

(b) may publish with the notice such other general guidance as they consider appropriate.

(4) Any application made in pursuance of a notice under subsection (2) must be in writing and accompanied by—

(a) the fee specified in the notice under subsection (2)(f),

(b) a technical plan relating to the service which the applicant proposes to provide and indicating—

(i) the parts of the area or locality specified under subsection (2)(c) which would be within the coverage area of the service,

(ii) the timetable in accordance with which that coverage would be achieved, and

(iii) the technical means by which it would be achieved,

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(da) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) such information as OFCOM may reasonably require as to the applicant’s present financial position and his projected financial position during the period for which the licence would be in force, and

(g) such other information as OFCOM may reasonably require for the purpose of considering the application.

(5) At any time after receiving such an application and before determining it OFCOM may require the applicant to furnish additional information under any of paragraphs (b) to (g) of subsection (4).

(6) Any information to be furnished to OFCOM under this section shall, if they so require, be in such form or verified in such manner as they may specify.

(7) OFCOM shall, as soon as reasonably practicable after the date specified in a notice under subsection (2) as the closing date for applications, publish in such manner as they consider appropriate—

(a) the following matters, namely—

(i) the name of every person who has made an application to them in pursuance of the notice, and

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) such other information connected with his application as OFCOM consider appropriate; and

(b) a notice—

(i) inviting representations to be made to them with respect to any of the applications, and

(ii) specifying the manner in which, and the time by which, any such representations are to be so made.

Award of local radio multiplex licences

51

(1) Where OFCOM have published a notice under section 50(2), they shall in determining whether, or to whom, to award the local radio multiplex licence in question, have regard (in relation to each applicant) to the matters specified in subsection (2).

(2) The matters referred to in subsection (1) are—

(a) the extent of the coverage area (within the area or locality specified in the notice under section 50(2)(c)) proposed to be achieved by the applicant as indicated in the technical plan submitted by him under section 50(4)(b),

(b) the timetable proposed by the applicant under section 50(4)(b)(ii) ...,

(c) the ability of the applicant to establish the proposed service and to maintain it throughout the period for which the licence will be in force,

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) the extent to which there is evidence that, amongst persons providing or proposing to provide community or local digital sound programme services in the area or locality for which the proposed service is to be provided, there is a demand for, or support for, the provision of the proposed service; and

(g) whether, in contracting or offering to contract with persons providing digital sound programme services , television licensable content services or digital additional services, the applicant has acted in a manner calculated to ensure fair and effective competition in the provision of those services.

(3) In considering the matters referred to in subsection (2), OFCOM shall take into account any representations made to them in pursuance of section 50(7)(b) with respect to those matters.

(4) Where OFCOM have awarded a local radio multiplex licence to any person in accordance with this section, they shall, as soon as reasonably practicable after awarding the licence—

(a) publish in such manner as they consider appropriate—

(i) the name of the person to whom the licence has been awarded, and

(ii) such other information as OFCOM consider appropriate, and

(b) grant the licence to that person.

Power to require two or more local radio multiplex licences to be granted to one person

52

(1) OFCOM may, before publishing a notice under section 50(2), determine that two or more local radio multiplex licences are on that occasion to be granted to one person.

(2) Where OFCOM have so determined, they shall publish a single notice under section 50(2) in relation to the licences.

(3) In relation to any application made in pursuance of such a notice—

(a) references in section 50(4) and 51(2) to the proposed service shall have effect as references to each of the proposed services, and

(b) the reference in section 51(1) to the local radio multiplex licence shall have effect as a reference to all the licences concerned.

(4) Nothing in this section applies in relation to the renewal of a local radio multiplex licence.

Failure to begin providing licensed service and financial penalties on revocation of licence

53

(1) Subject to subsection (2), subsection (3) applies where at any time after a radio multiplex licence has been granted to any person but before the licence has come into force—

(a) that person indicates to OFCOM that he does not intend to provide the service in question, or

(b) OFCOM for any other reason have reasonable grounds for believing that that person will not provide that service once the licence has come into force.

(2) Subsection (3) shall not apply in the case of any person by virtue of paragraph (b) of subsection (1) unless OFCOM have served on him a notice stating their grounds for believing that he will not provide the service in question once his licence has come into force; and they shall not serve such a notice on him unless they have given him a reasonable opportunity of making representations to them about the matters complained of.

(3) Where this subsection applies—

(a) OFCOM shall serve on the person to whom the licence has been granted a notice revoking the licence as from the time the notice is served on him, and

(b) section 47 or 51 shall (subject to subsection (4)) have effect as if he had not made an application for the licence.

(4) Section 47 or 51 shall not have effect as mentioned in subsection (3) if OFCOM decide that it would be desirable to publish a fresh notice under section 46(1) or 50(2) in respect of the grant of the licence.

(5) Where OFCOM revoke a radio multiplex licence under this section or under any other provision of this Part, they shall serve on the licence holder a notice requiring him to pay to them, within a specified period, a specified financial penalty not exceeding—

(a) in the case of a local radio multiplex licence, £250,000 , or

(b) in the case of a national radio multiplex licence, whichever is the greater of—

(i) £250,000 , or

(ii) the prescribed amount.

(6) In subsection (5)(b)(ii) “the prescribed amount” means—

(a) where—

(i) the licence is revoked under this section, or

(ii) the first complete accounting period of the licence holder falling within the period for which the licence is in force has not yet ended,

7 per cent. of the amount which OFCOM estimate would have been the multiplex revenue for that accounting period (as determined in accordance with section 56), and

(b) in any other case, 7 per cent. of the multiplex revenue for the last complete accounting period of the licence holder so falling (as so determined).

(7) Any financial penalty payable by any body by virtue of subsection (5) shall, in addition to being recoverable from that body as provided by section 71(4), be recoverable by OFCOM as a debt due to them from any person who controls that body.

Conditions attached to national or local radio multiplex licence

54

(1) A radio multiplex licence shall include such conditions as appear to OFCOM to be appropriate for securing—

(a) that the licensed service is established by the licence holder in accordance with the timetable and other proposals indicated in the technical plan submitted under section 46(4)(b) or 50(4)(b),

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i) in the case of a national radio multiplex licence, by the holder of a national digital sound programme licence under section 60, and

(ii) in the case of a local radio multiplex licence, by the BBC or the holder of a local digital sound programme licence under that section,

(ca) that all television licensable content services broadcast under the licence are provided by the holder of a licence under Part 1 of the 1990 Act to provide such a service or by a CTT broadcaster (within the meaning given by section 12(3A));

(d) that all digital additional services broadcast under the licence are provided by the holder of a licence under section 64,

(e) that in the terms on which the holder of the licence contracts, or offers to contract, for the broadcasting of digital sound programme services , television licensable content services or digital additional services, he does not show undue discrimination either against or in favour of a particular person providing such a service or a class of such persons,

(f) that the holder of the licence does not, in any agreement with a person providing a digital sound programme service , television licensable content service or digital additional services which entitles that person to use a specified amount of digital capacity on the frequency or frequencies to which the licence relates, restrict that person’s freedom to make arrangements with some other person as to the use of any of that digital capacity (except to the extent that the restriction is reasonably required for the purpose of ensuring the technical quality of the broadcasts or for the purpose of securing compliance with any other condition of the licence),

(g) that the signals carrying the radio multiplex service attain high standards in terms of technical quality and reliability throughout so much of the area or locality for which the service is provided as is for the time being reasonably practicable, ...

(h) that, while the licence is in force, at least the required percentage of the digital capacity on the frequency or frequencies on which the service is broadcast is used, or left available to be used, for the broadcasting of services falling within subsection (1A);

(i) that the holder of the licence publishes information, in such manner as OFCOM consider appropriate, as to the payments to be made by the holders of community, local and national digital sound programme licences for the broadcasting of their services under the licence, and

(j) that the holder of the licence provides to OFCOM information, in such manner as OFCOM consider appropriate, on the community, local and national digital sound programme services provided for broadcasting by means of the service.

(1A) The services falling within this subsection are—

(a) digital sound programme services;

(b) simulcast radio services;

(d) relevant technical services.

(2) In subsection (1A) —

(a) “programme-related service” means any digital additional service consisting in the provision of services (apart from advertising) which—

(i) are ancillary to the programmes included in one or more digital sound programme services, simulcast radio services or local or national services (within the meaning of section 245 of the Communications Act 2003) and are directly related to the contents of those programmes, or

(ii) relate to the promotion or listing of such programmes, and

(b) “relevant technical service” means any technical service which relates to one or more digital sound programme services.

(2A) In subsection (1)(h), the reference to the required percentage is a reference to such percentage equal to or more than 70 per cent. as OFCOM—

(a) consider appropriate; and

(b) specify in the condition.

(3) The Secretary of State may, after consulting OFCOM , by order amend subsection (2A) by substituting a different percentage for the percentage for the time being specified in that subsection .

(4) No order under subsection (3) shall be made unless a draft of the order has been laid before and approved by a resolution of each House of Parliament.

(5) Any conditions imposed in pursuance of subsection (1)(a) ... may be varied by OFCOM with the consent of the licence holder (and section 42(3) shall accordingly not apply to any such variation).

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional payments to be made in respect of national radio multiplex licences

55

(1) Where a national radio multiplex licence is granted in pursuance of a notice under subsection (1) of section 46 which specified a percentage of multiplex revenue under paragraph (h) of that subsection, the licence shall include conditions requiring the licence holder to pay to OFCOM (in addition to any fees required to be so paid by virtue of section 43(1)(c)) in respect of each accounting period of his falling within the period for which the licence is in force, an amount representing such percentage of the multiplex revenue for that accounting period (determined under section 56) as was specified in the notice.

(2) The Secretary of State may by order provide that, in relation to any notice under subsection (1) of section 46 published while the order is in force, no percentage shall be specified under paragraph (h) of that subsection.

(3) Any order under subsection (2) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4) A national radio multiplex licence may include conditions—

(a) enabling OFCOM to estimate before the beginning of an accounting period the amount due for that period by virtue of subsection (1), and

(b) requiring the licence holder to pay the estimated amount by monthly instalments throughout that period.

(5) Such a licence may in particular include conditions—

(a) authorising OFCOM to revise any estimate on one or more occasions, and to adjust the instalments payable by the licence holder to take account of the revised estimate;

(b) providing for the adjustment of any overpayment or underpayment.

(6) Where—

(a) the first complete accounting period of the licence holder falling within the period for which the licence is in force (“the licence period”) does not begin at the same time as that period, or

(b) the last complete accounting period of his falling within the licence period does not end at the same time as that period,

any reference in subsection (1) to an accounting period of his shall include a reference to such part of the accounting period preceding that first complete accounting period, or (as the case may be) following that last complete accounting period, as falls within the licence period; and other references to accounting periods in this Part shall be construed accordingly.

Multiplex revenue

56

(1) For the purposes of this Part the multiplex revenue for each accounting period of the person who is the multiplex provider in relation to a national radio multiplex service shall consist of—

(a) all payments received or to be received by him or any person connected with him from a person other than a programme provider or an additional services provider—

(i) in consideration of the inclusion in that period, in any digital sound programme service or digital additional service broadcast by means of the national radio multiplex service ..., of advertisements or other programmes, or

(ii) in respect of charges made in that period for the reception of programmes included in any such digital sound programme service or digital additional service,

(b) all payments received or to be received by him or any person connected with him in respect of the broadcasting of any simulcast radio service by means of the national radio multiplex service,

(c) all payments received or to be received by any programme provider or any person connected with him from a person other than the multiplex provider , an additional service provider or another programme provider—

(i) in consideration of the inclusion in that period, in any digital sound programme service provided by him for broadcasting by means of the national radio multiplex service, of advertisements or other programmes, or

(ii) in respect of charges made in that period for the reception of programmes included in any such digital sound programme service, and

(d) all payments received or to be received by any additional services provider or any person connected with him from a person other than the multiplex provider , a programme provider or another additional services provider—

(i) in consideration of the inclusion in that period, in any digital additional service provided by him for broadcasting by means of the national radio multiplex service, of advertisements or other programmes, or

(ii) in respect of charges made in that period for the reception of programmes included in any such digital additional service.

(2) If, in connection with the inclusion of any advertisements or other programmes whose inclusion is paid for by payments falling within subsection (1)(a)(i), any payments are made to the multiplex provider or any person connected with him to meet any payments payable by the multiplex provider by virtue of section 55(1), those payments shall be regarded as made in consideration of the inclusion of the programmes in question.

(3) In the case of an advertisement included as mentioned in subsection (1)(a)(i), (c)(i) or (d)(i) under arrangements made between—

(a) the multiplex provider , a programme provider or an additional services provider or any person connected with any of them, and

(b) a person acting as an advertising agent,

the amount of any receipt by the multiplex provider , programme provider or additional services provider or any connected person that represents a payment by the advertiser from which the advertising agent has deducted any amount by way of commission shall, except in a case falling within subsection (4), be the amount of the payment by the advertiser after the deduction of the commission.

(4) If the amount deducted by way of commission as mentioned in subsection (3) exceeds 15 per cent. of the payment by the advertiser, the amount of the receipt in question shall be taken to be the amount of the payment less 15 per cent.

(5) If, in any accounting period of the multiplex provider , a programme provider or an additional services provider or a person connected with any of them derives, in relation to any programme to be included in the relevant service, any financial benefit (whether direct or indirect) from payments made by any person other than the licence holder, by way of sponsorship, for the purpose of defraying or contributing towards costs incurred or to be incurred in connection with that programme, the relevant payments shall be taken to include the amount of the financial benefit so derived by the multiplex provider or the connected person, as the case may be.

(6) In subsection (5)—

(a) “the relevant service” means—

(i) in relation to a programme provider or a person connected with him, any digital sound programme service provided as mentioned in subsection (1)(c)(i), and

(ii) in relation to an additional services provider or a person connected with him, any digital additional service provided as mentioned in subsection (1)(d)(i), and

(b) “relevant payments” means—

(i) in relation to a programme provider, the payments referred to in subsection (1)(c), and

(ii) in relation to an additional services provider, the payments referred to in subsection (1)(d).

(7) Where, in any accounting period of the multiplex provider —

(a) the multiplex provider provides a digital sound programme service or digital additional service for broadcasting by means of the multiplex service,

(b) the multiplex provider is engaged in any activity which, if engaged in by another person, would result in payments falling within subsection (1)(a) being made to the licence holder,

(c) a programme provider is engaged in any activity which, if engaged in by another person, would result in payments falling within subsection (1)(c) being made to the programme provider, or

(d) an additional services provider is engaged in any activity which, if engaged in by another person, would result in payments falling within subsection (1)(d) being made to the additional services provider,

OFCOM may, if they consider that the amount which would (apart from this subsection) be the multiplex revenue for that accounting period is less than it would have been if the digital sound programme service or digital additional service had been provided, or the activity engaged in, by another person at arm’s length, treat the multiplex revenue as increased by the amount of the difference.

(8) Where, in any accounting period of the multiplex provider or a programme provider or additional services provider receives payments falling within subsection (1)(a), (b), (c) or (d) from a person connected with him and it appears to the Authority that the amount which (apart from this subsection) would be the multiplex revenue for that accounting period is less than it would have been if the arrangements between him and the connected person were such as might be expected between parties at arm’s length, OFCOM may treat the multiplex revenue as increased by the amount of the difference.

(9) In this section—

“additional services provider”, in relation to a national radio multiplex service , means any person who provides any digital additional service for broadcasting by means of that radio multiplex service ;

“multiplex provider”-in relation to a national radio multiplex service for which a person holds a licence under this Part, means the licence holder; andin relation to a national radio multiplex service which is not licensed under this Part, means the person who provides that service.

“programme provider”, in relation to a national radio multiplex service , means any person who provides a digital sound programme service for broadcasting by means of that radio multiplex service .

(10) This section and section 57 shall have effect as if references in this section to digital sound programme services included references to television licensable content services.

Attribution of multiplex revenue to licence holder and others

57

(1) For the purposes of section 59(2A) and (2B) , the share of multiplex revenue attributable to the person who is the multiplex provider in relation to a national radio multiplex service in respect of any accounting period of his shall be—

(a) the aggregate of—

(i) payments falling within paragraph (a) or (b) of section 56(1), and

(ii) payments received or to be received by him from programme providers and additional services providers in respect of the provision of radio multiplex services in that period,

less

(b) the amount of any payments made or to be made to programme providers or additional service providers which would fall within paragraph (c) or (d) of section 56(1) but for the fact that they are received from the person who is the multiplex provider in relation to a national radio multiplex service .

(2) For the purposes of sections 62(2A) to (5) and 66(2A) to (5) , the share of multiplex revenue attributable to a programme provider or additional services provider in relation to a national radio multiplex service in respect of any accounting period of the multiplex provider shall be—

(a) the aggregate of—

(i) payments falling within paragraph (c) or (d) of section 56(1), and

(ii) payments received or to be received from the multiplex provider which would fall within one of those paragraphs but for the fact that they are received from the multiplex provider ,

less

(b) the amount of any payments made or to be made to the multiplex provider in respect of the provision of radio multiplex services in that period.

(3) In a case falling within subsection (7) or (8) of section 56, OFCOM may treat the share of multiplex revenue attributable to any person for the accounting period of the multiplex provider as increased by such amount as they consider appropriate to take account of the circumstances mentioned in that subsection.

(4) In this section “additional services provider” , multiplex provider and “programme provider”, in relation to a national radio multiplex service , have the same meaning as in section 56.

Duration and renewal of national or local radio multiplex licences

58

(1) A radio multiplex licence shall (subject to the provisions of this Part and to section 111 of the 1990 Act as applied by section 59(8)) continue in force for a period of twelve years.

(2) Subject to subsection (2A), a radio multiplex licence granted within ten years of the commencement of this section may be renewed on one occasion in accordance with this section

(a) in the case of a licence granted within six years of that commencement, for a period of twelve years beginning with the date on which it would otherwise expire; and

(b) in any other case, for a period of eight years beginning with that date; but nothing in this subsection prevents section 58ZA from applying in relation to any licence.

(2A) A national radio multiplex licence granted (or renewed under this section) before the commencement of this subsection may be renewed (or further renewed) in accordance with this section for a period ending with 31st December 2035.

(3) An application for the renewal of a radio multiplex licence under subsection (2) may be made by the licence holder not earlier than four years before the date on which it would otherwise cease to be in force and not later than the day falling three months before the relevant date.

(3A) An application for the renewal of a national radio multiplex licence under subsection (2A) may be made by the licence holder not later than the relevant date.

(4) At any time before determining the application, OFCOM may—

(a) require the applicant to furnish—

(i) a technical plan which supplements that submitted by the licence holder under section 46(4)(b) or 50(4)(b), and

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) notify the applicant of requirements which must be met by that supplementary technical plan or those supplementary proposals and relate to the matters referred to in section 46(4)(b)(i) and (ii) or 50(4)(b)(i) and (ii).

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) Where any such application is made ..., OFCOM may postpone consideration of it by them for as long as they think appropriate having regard to subsection (10).

(7) Where an application for the renewal of a radio multiplex licence has been duly made to OFCOM, they may refuse the application only if—

(a) it appears to them that the applicant has failed to comply with any of the conditions included in his licence,

(b) any supplementary technical plan or supplementary proposals submitted under subsection (4)(a) fail to meet requirements notified to the applicant under subsection (4)(b), or

(c) they are not satisfied that the applicant would, if his licence were renewed, provide a service which complied with the conditions to be included in the licence as renewed.

(8) Subject to subsection (9), on the grant of any such application OFCOM may with the consent of the Secretary of State, and shall if so required by him—

(a) specify a percentage different from that specified under section 46(1)(h) as the percentage of multiplex revenue for each accounting period of his that will be payable by the applicant in pursuance of section 55(1) during the period for which the licence is to be renewed, or

(b) specify such a percentage where none was specified under section 46(1)(h);

and OFCOM may specify under paragraph (a) or (b) either of the things mentioned in section 46(2)(b).

(9) Where an order under section 55(2) is in force on the relevant date, no percentage of multiplex revenue shall be payable as mentioned in subsection (8)(a) during the period for which the licence is to be renewed.

(10) Where OFCOM have granted a person’s application under this section, they shall formally renew his licence from the date on which it would otherwise expire; but in the case of a national multiplex licence they shall not so renew his licence unless they have notified him of any percentage specified by them under subsection (8) and he has, within such period as is specified in that notification, notified them that he consents to the licence being renewed on those terms.

(11) Where a radio multiplex licence has been renewed under this section, the licence as renewed shall include such further conditions as appear to OFCOM to be appropriate for securing the implementation of any supplementary technical plan ... submitted under subsection (4)(a).

(12) In this section “the relevant date”, in relation to a radio multiplex licence, means the date which OFCOM determine to be that by which they would need to publish a notice under section 46(1) or 50(2) if they were to grant, as from the date on which that licence would expire if not renewed, a fresh licence to provide the service formerly provided under that licence.

(12A) A determination for the purposes of subsection (12)—

(a) must be made at least one year before the date determined , subject to subsection (12B); and

(b) must be notified by OFCOM to the person who holds the licence in question.

(12B) Subsection (12A)(a) does not prevent a determination for the purposes of subsection (12) being made less than one year before the date determined where—

(a) the renewal of the licence in question would be a renewal under subsection (2A), and

(b) the determination is made as soon as practicable after the commencement of this subsection.

(13) Nothing in this section prevents the holder of a radio multiplex licence from applying for a new licence on one or more occasions in pursuance of a notice under section 46(1) or 50(2).

Enforcement of national or local radio multiplex licences

59

(1) If OFCOM are satisfied that the holder of a radio multiplex licence has failed to comply with any condition of the licence or with any direction given by OFCOM under or by virtue of any provision of this Part, they may (subject to the following provisions of this section) serve on him—

(a) a notice requiring him to pay, within a specified period, a specified financial penalty to OFCOM , or

(b) a notice reducing the period for which the licence is to be in force by a specified period not exceeding two years.

(2) The amount of any financial penalty imposed in pursuance of subsection (1)(a) on the holder of a national radio multiplex licence shall not exceed the maximum penalty given by subsection (2A).

(2A) The maximum penalty is whichever is the greater of—

(a) £250,000; and

(b) 5 per cent. of the aggregate amount of the share of multiplex revenue attributable to him for his last complete accounting period falling within a period for which his licence has been in force (“the relevant period”).

(2B) In relation to a person whose first complete accounting period falling within the relevant period has not ended when the penalty is imposed, subsection (2A)(b) is to be construed as referring to 5 per cent. of the amount which OFCOM estimate to be the share of multiplex revenue attributable to him for that accounting period.

(2C) Section 57(1) and (3) applies for determining or estimating the share of multiplex revenue attributable to a person for the purposes of subsection (2A) or (2B) above.

(4) The amount of any financial penalty imposed in pursuance of subsection (1)(a) on the holder of a local radio multiplex licence shall not exceed £250,000 .

(5) OFCOM shall not serve on any person any notice under subsection (1) unless they have given him a reasonable opportunity of making representations to them about the matters complained of.

(6) Where a licence is due to expire on a particular date by virtue of a notice served on any person under subsection (1)(b), OFCOM may, on the application of that person, revoke that notice by a further notice served on him at any time before that date, if they are satisfied that, since the date of the earlier notice, his conduct in relation to the operation of the licensed service has been such as to justify the revocation of that notice.

(7) Where OFCOM serve a notice on a BBC company under any provision of this section, they shall send a copy of the notice to the Secretary of State.

(8) Subject to subsection (9), section 111 of the 1990 Act (power to revoke licence granted under Chapter II of Part III of the 1990 Act) shall have effect in relation to a radio multiplex licence as it has effect in relation to a licence under Chapter II of Part III of the 1990 Act.

(9) In its application in relation to a radio multiplex licence, section 111 of the 1990 Act shall have effect—

(a) with the substitution in subsection (1)(a) for the reference to Part III of the 1990 Act of a reference to this Part, and

(b) with the omission of subsection (4) and the reference to that subsection in subsection (6).

Digital sound programme services

Licensing of digital sound programme services

60

(1) For the purposes of this Part a digital sound programme service is—

(a) a “national digital sound programme service” if it is provided for broadcasting by means of a national radio multiplex service , by means of a television multiplex service or by means of a general multiplex service , and

(b) a “local digital sound programme service” if it is provided for broadcasting by means of a local radio multiplex service.

(2) A licence to provide digital sound programme services (in this Part referred to as a “digital sound programme licence”) may be either—

(a) a licence to provide national digital sound programme services (in this Part referred to as a “national digital sound programme licence”), or

(b) a licence to provide local digital sound programme services (in this Part referred to as a “local digital sound programme licence”).

(3) An application for a digital sound programme licence shall—

(a) be made in such manner as OFCOM may determine, and

(b) be accompanied by such fee (if any) as they may determine.

(4) At any time after receiving such an application and before determining it, OFCOM may require the applicant to furnish such additional information as they may consider necessary for the purpose of considering the application.

(5) Any information to be furnished to OFCOM under this section shall, if they so require, be in such form or verified in such manner as they may specify.

(6) Where an application for a digital sound programme licence is made to OFCOM in accordance with the provisions of this section, they shall grant the licence unless precluded from doing so by section 42(2)(a) or 44(1).

(6A) Section 89 of the 1990 Act (disqualification from being licence holder or concerned with the provision of a programme service if convicted of a transmitting offence) shall apply in relation to a licence under this section as it applies to a licence under Part 3 of that Act, but with the omission of paragraph (b) of subsection (3) of that section and of the word “or” immediately before that paragraph.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duration and conditions of digital sound programme licence

61

(1) Subject to the provisions of this Part and to section 111 of the 1990 Act as applied by section 62(10), a digital sound programme licence shall continue in force until it is surrendered by its holder.

(2) A digital sound programme licence shall include such conditions as appear to OFCOM to be appropriate for requiring the holder of the licence—

(a) on entering into any agreement with the provider of a radio multiplex service, of a television multiplex service or of a general multiplex service for the provision of a digital sound programme service to be broadcast by means of the multiplex service , to notify OFCOM —

(i) of the identity of the multiplex service ,

(ii) of the characteristics of the digital sound programme service to which the agreement relates, and

(iii) of the period during which it will be provided,

(b) when any such agreement is varied so far as it relates to any of the matters mentioned in paragraph (a)(i), (ii) or (iii), to notify OFCOM of the variation so far as relating to those matters, and

(c) where he is providing a digital sound programme service to the provider of a radio multiplex service, of a television multiplex service or of a general multiplex service in accordance with such an agreement as is mentioned in paragraph (a) but intends to cease doing so, to notify OFCOM of that fact.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enforcement of digital sound programme licences

62

(1) If OFCOM are satisfied that the holder of a digital sound programme licence has failed to comply with any condition of the licence or with any direction given by OFCOM under or by virtue of any provision of this Part, they may (subject to the following provisions of this section) serve on him—

(a) a notice requiring him to pay, within a specified period, a specified financial penalty to OFCOM ,

(b) a notice providing that the licence is to expire on a specified date, which shall be at least one year from the date of service of the notice, and

(2) The amount of any financial penalty imposed in pursuance of subsection (1)(a) on the holder of a national digital sound programme licence shall not exceed the maximum penalty given by subsection (2A).

(2A) The maximum penalty is whichever is the greater of—

(a) £250,000; and

(b) 5 per cent. of the aggregate amount of the shares of multiplex revenue attributable to him in relation to relevant multiplex services in respect of relevant accounting periods.

(4) In subsection (2A) “relevant accounting period”, in relation to a relevant multiplex service, means the last accounting period of the multiplex provider .

(5) Where, in the case of any relevant multiplex service , the first accounting period of the multiplex provider throughout which the holder of the digital sound programme licence provides a digital sound programme service for broadcasting by means of that relevant multiplex service (“the first period”) has not ended when the penalty is imposed, then for the purposes of this section the share of multiplex revenue attributable to the holder of the digital sound programme licence in relation to that relevant multiplex service for the relevant accounting period shall be taken to be the amount which OFCOM estimate to be the share of multiplex revenue attributable to him for the first period.

(5A) A determination or estimate for the purposes of subsection (2A) or (5) above of the share of multiplex revenue attributable to a person in relation to national radio multiplex services is to be in accordance with section 57(2) and (3).

(5B) A determination or estimate for the purposes of subsection (2A) or (5) above of the share of multiplex revenue attributable to a person in relation to television multiplex services or general multiplex services is to be in accordance with section 15(2) and (3).

(5B) For the purposes of this section, a service is a relevant multiplex service if it is—

(a) a national radio multiplex service;

(b) a television multiplex service; or

(5C) In this section, “multiplex provider”—

(a) in relation to a national radio multiplex service, means the multiplex provider within the meaning of section 56; and

(b) in relation to a television multiplex service or a general multiplex service, means the multiplex provider within the meaning of section 14.

(6) The amount of any financial penalty imposed in pursuance of subsection (1)(a) on the holder of a local digital sound programme licence shall not exceed £250,000 .

(7) OFCOM shall not serve on any person any notice under subsection (1) unless they have given him a reasonable opportunity of making representations to them about the matters complained of.

(8) Where a licence is due to expire on a particular date by virtue of a notice served on any person under subsection (1)(b), OFCOM may, on the application of that person, revoke that notice by a further notice served on him at any time before that date, if they are satisfied that, since the date of the earlier notice, his conduct in relation to the operation of the licensed service has been such as to justify the revocation of that notice.

(9) Where OFCOM serve a notice on a BBC company under any provision of this section, they shall send a copy of the notice to the Secretary of State.

(10) Subject to subsections (11) and (12), sections 109, 111 and 111B of the 1990 Act (enforcement) shall apply in relation to a digital sound programme licence as they apply in relation to a licence under Chapter II of Part III of the 1990 Act.

(11) In its application in relation to a digital sound programme licence, section 109(1) of the 1990 Act shall have effect with the substitution for the reference to a direction under Part III of that Act of a reference to a direction under this Part.

(12) In its application in relation to a digital sound programme licence, section 111 of the 1990 Act shall have effect—

(a) with the substitution for the reference in subsection (1)(a) to Part III of that Act of a reference to this Part, and

(b) with the omission of subsection (4) and of the reference to that subsection in subsection (6).

(13) It is hereby declared that any exercise by OFCOM of their powers under subsection (1) in respect of any failure to comply with any condition of a digital sound programme licence shall not preclude any exercise by OFCOM of their powers under section 109 of the 1990 Act in respect of that failure.

Digital additional services provided on sound broadcasting frequencies

Digital additional services

63

(1) In this Part “digital additional service” means any service which—

(a) is provided by a person with a view to its being broadcast in digital form (whether by him or some other person) so as to be available for reception by members of the public;

(aa) is so provided with a view to the broadcasting being by means of a radio multiplex service or by means of a general multiplex service; and

(b) is not a digital sound programme service, a simulcast radio service, a television licensable content service, an ancillary service, a relevant ancillary service within the meaning of section 232 of the Communications Act 2003 or a technical service.

(2) In this Part “ancillary service” (except in the expression “relevant ancillary service”) means any service which is provided by the holder of a digital sound programme licence or by an independent national broadcaster and consists in the provision of any service (other than advertising) which—

(a) is ancillary to programmes included in a digital sound programme service or simulcast radio service provided by him and is directly related to their contents, or

(b) relates to the promotion or listing of such programmes.

(3) In this Part “technical service” means a service which—

(a) is provided for technical purposes connected with the encryption or decryption of one or more digital sound programme services or digital additional services , television licensable content services , and

(b) is of a description specified in an order made by the Secretary of State.

(3A) In this section “available for reception by members of the public” shall be construed in accordance with section 361 of the Communications Act 2003.

(4) An order under subsection (3) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Licensing of digital additional services

64

(1) An application for a licence to provide digital additional services (in this Part referred to as a “digital additional services licence”) shall—

(a) be made in such manner as OFCOM may determine, and

(b) be accompanied by such fee (if any) as they may determine.

(2) At any time after receiving such an application and before determining it, OFCOM may require the applicant to furnish such additional information as they may consider necessary for the purpose of considering the application.

(3) Any information to be furnished to OFCOM under this section shall, if they so require, be in such form or verified in such manner as they may specify.

(4) Where an application for a digital additional services licence is made to OFCOM in accordance with the provisions of this section, they shall grant the licence unless precluded from doing so by section 42(2)(a) or 44(1).

Duration and conditions of digital additional services licence

65

(1) Subject to the provisions of this Part and to section 111 of the 1990 Act as applied by section 66(10), a digital additional services licence shall continue in force until it is surrendered by its holder.

(2) A digital additional services licence shall include such conditions as appear to OFCOM to be appropriate for requiring the holder of the licence—

(a) on entering into any agreement with the provider of a radio multiplex service or of a general multiplex service for the provision of digital additional services to be broadcast by means of the multiplex service , to notify OFCOM —

(i) of the identity of the multiplex service ,

(ii) of the period during which the services will be provided, and

(iii) where under the agreement the holder of the digital additional services licence will be entitled to the use of a specified amount of digital capacity, of that amount,

(b) when any such agreement is varied so far as it relates to any of the matters mentioned in paragraph (a)(i), (ii) or (iii) to notify OFCOM of the variation so far as relating to those matters, and

(c) where he is providing digital additional services to the provider of a radio multiplex service or of a general multiplex service in accordance with such an agreement as is mentioned in paragraph (a) but intends to cease doing so, to notify OFCOM of that fact.

Enforcement of digital additional services licences

66

(1) If OFCOM are satisfied that the holder of a digital additional services licence has failed to comply with any condition of the licence or with any direction given by OFCOM under or by virtue of any provision of this Part, they may (subject to the following provisions of this section) serve on him—

(a) a notice requiring him to pay, within a specified period, a specified financial penalty to OFCOM ,

(b) a notice providing that the licence is to expire on a specified date, which shall be at least one year from the date of service of the notice, or

(2) Subject to subsection (4), the amount of any financial penalty imposed in pursuance of subsection (1)(a) on the holder of a digital additional services licence shall not exceed the maximum penalty given by subsection (2A).

(2A) The maximum penalty is whichever is the greater of—

(a) £250,000; and

(b) 5 per cent. of the aggregate amount of the shares of multiplex revenue attributable to him in relation to relevant multiplex services in respect of relevant accounting periods.

(4) Where the holder of a digital additional services licence has not provided any digital additional services for broadcasting by means of a relevant multiplex service , the amount of any penalty imposed on him under subsection (1)(a) shall not exceed £250,000 .

(5) In subsection (2A) “relevant accounting period”, in relation to a relevant multiplex service, means the last accounting period of the multiplex provider .

(6) Where, in the case of any relevant multiplex service , the first accounting period of the multiplex provider throughout which the holder of the digital additional services licence provides a digital additional service for broadcasting by means of that relevant multiplex service (“the first period”) has not ended when the penalty is imposed, then for the purposes of this section the share of multiplex revenue attributable to the holder of the digital additional services licence in relation to that relevant multiplex service for the relevant accounting period shall be taken to be the amount which OFCOM estimate to be the share of multiplex revenue attributable to him for the first period.

(6A) A determination or estimate for the purposes of subsection (2A) or (6) above of the share of multiplex revenue attributable to a person in relation to national radio multiplex services is to be in accordance with section 57(2) and (3).

(6B) A determination or estimate for the purposes of subsection (2A) or (6) above of the share of multiplex revenue attributable to a person in relation to general multiplex services is to be in accordance with section 15(2) and (3).

(6B) For the purposes of this section, a service is a relevant multiplex service if it is—

(a) a national radio multiplex service; or

(b) a general multiplex service.

(6C) In this section, “multiplex provider”—

(a) in relation to a national radio multiplex service, means the multiplex provider within the meaning of section 56; and

(b) in relation to a general multiplex service, means the multiplex provider within the meaning of section 14.

(7) OFCOM shall not serve on any person any notice under subsection (1) unless they have given him a reasonable opportunity of making representations to them about the matters complained of.

(8) Where a licence is due to expire on a particular date by virtue of a notice served on any person under subsection (1)(b), OFCOM may, on the application of that person, revoke that notice by a further notice served on him at any time before that date, if they are satisfied that, since the date of the earlier notice, his conduct in relation to the operation of the licensed service has been such as to justify the revocation of that notice.

(9) Where OFCOM serve a notice on a BBC company under any provision of this section, they shall send a copy of the notice to the Secretary of State.

(10) Subject to subsections (11) and (12), section 109 (power to require scripts etc. or broadcasting of correction or statement of findings or not to repeat programme) and section 111 (power to revoke licences) of the 1990 Act shall apply in relation to a digital additional services licence as they apply in relation to a licence under Chapter II of Part III of the 1990 Act.

(11) In its application in relation to a digital additional services licence, section 109(1) of the 1990 Act shall have effect with the substitution for the reference to a direction under Part III of that Act of a reference to a direction under this Part.

(12) In its application in relation to a digital additional services licence, section 111 of the 1990 Act shall have effect—

(a) with the substitution for the reference in subsection (1)(a) to Part III of that Act of a reference to this Part, and

(b) with the omission of subsection (4) and of the reference to that subsection in subsection (6).

(13) It is hereby declared that any exercise by OFCOM of their powers under subsection (1) in respect of any failure to comply with any condition of a digital additional services licence shall not preclude any exercise by OFCOM of their powers under section 109 of the 1990 Act in respect of that failure.

Miscellaneous and supplemental

Review of digital radio broadcasting

67

(1) For the purpose of considering for how long it would be appropriate for sound broadcasting services to continue to be provided in analogue form, the Secretary of State—

(a) shall keep under review the extent of—

(i) the provision in the United Kingdom of radio multiplex services,

(ii) the availability in the United Kingdom of digital sound programme services and the availability there in digital form of national services (within the meaning of Part III of the 1990 Act) and the sound broadcasting services of the BBC, and

(iii) the ownership or possession in the United Kingdom of equipment capable of receiving the services referred to in sub-paragraph (ii) when broadcast or transmitted in digital form,

and the likely future extent of such provision, such availability and such ownership or possession, and

(b) shall, on or before the fourth anniversary of the day on which the first national radio multiplex licence is granted under section 47, and at such time or times thereafter as he thinks fit, require OFCOM and the BBC to report to him on the matters referred to in paragraph (a).

(2) If OFCOM or the BBC are required to submit a report under subsection (1)(b), they shall submit the report within twelve months of the date of the requirement.

(3) Before making any report under this subsection (1)(b), OFCOM shall consult—

(a) the holders of all radio multiplex licences,

(b) the holders of digital sound programme licences who are providing digital sound programme services which are being broadcast, and

(c) such other persons providing services licensed by OFCOM under this Part or Part III of the 1990 Act as the Authority think fit,

and OFCOM shall include in their report a summary of representations made to them by the persons consulted.

(4) For the purpose mentioned in subsection (1), the Secretary of State shall, on requiring reports under subsection (1)(b), consult—

(a) such persons appearing to him to represent listeners as he thinks fit, and

(b) such other persons as he thinks fit,

in connection with the matters referred to in subsection (1)(a) and also, if the Secretary of State thinks fit, as to the likely effects on listeners of any sound broadcasting service ceasing to be broadcast in analogue form.

(5) In this section “sound broadcasting service” has the same meaning as in Part III of the 1990 Act.

Promotion of equal opportunities and fair treatment

68

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to vary amount of financial penalties

69

(1) The Secretary of State may by order amend any of the provisions specified in subsection (2) by substituting a different sum for the sum for the time being specified there.

(2) The provisions referred to in subsection (1) are—

(a) section 53(5)(a) and (b)(i);

(b) section 59(2A)(a) and (4);

(d) section 66(2A)(a) and (4).

(3) No order is to be made under subsection (1) unless a draft of the order has been laid before Parliament and approved by a resolution of each House.

Computation of multiplex revenue

70

Part II of Schedule 1 (which contains provisions relating to the computation of multiplex revenue for the purposes of this Part) shall have effect.

Certain receipts of Authority to be paid into Consolidated Fund

71

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation of Part II

72

(1) In this Part (unless the context otherwise requires)—

“ancillary service” has the meaning given by section 63(2);

“digital additional service” has the meaning given by section 63(1), and “digital additional services licence” means a licence to provide such services;

“digital sound programme service” has the meaning given by section 40(5), and “digital sound programme licence” means a licence to provide such services;

“general multiplex service” has the same meaning as in Part 3 of the Communications Act 2003;

“independent national broadcaster” has the meaning given by section 41(1);

“licence” means a licence under this Part, and “licensed” shall be construed accordingly;

“local digital sound programme service” and “national digital sound programme service” shall be construed in accordance with section 60(1) and “local digital sound programme licence” and “national digital sound programme licence” mean a licence to provide local digital sound programme services and a licence to provide national digital sound programme services respectively;

“local radio multiplex service” and “national radio multiplex service” shall be construed in accordance with section 40(4), and “local radio multiplex licence” and “national radio multiplex licence” mean a licence to provide a local radio multiplex service and a licence to provide a national radio multiplex service respectively;

“radio multiplex licence” means a licence to provide a radio multiplex service;

“radio multiplex service” means a radio multiplex service within the meaning of Part 3 of the Communications Act 2003;

“the radio transfer date” has the same meaning as in the Communications Act 2003;

“simulcast radio service” has the meaning given by section 41(2);

“technical service” has the meaning given by section 63(3).

“television licensable content service” has the meaning given by section 232 of the Communications Act 2003;

“television multiplex service” has the meaning given by section 241 of the Communications Act 2003.

(2) Any reference in this Part to an area in the United Kingdom does not include an area which comprises or includes the whole of England; and nothing in this Part shall be read as precluding a local radio multiplex service from being provided for an area or locality that is to any extent comprised in the area or locality for which another local radio multiplex service is to be provided.

(3) Where the person who is for the time being the holder of any licence (“the present licence holder”) is not the person to whom the licence was originally granted, any reference in this Part (however expressed) to the holder of the licence shall be construed, in relation to any time falling before the date when the present licence holder became the holder of it, as including a reference to a person who was previously the holder of the licence.

Part III — Amendments of the Broadcasting Act 1990

Restrictions on holding of licences

73

Schedule 2 (which makes amendments of the 1990 Act relating to restrictions on the holding of licences under that Act or under Part I or II) shall have effect.

Regional Channel 3 services

Provision of news programmes by holders of regional Channel 3 licences

74

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appointment of news provider by holders of regional Channel 3 licences

75

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nomination by Commission for purposes of section 31(2) of Broadcasting Act 1990

76

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modification of Restrictive Trade Practices Act 1976 in its application to agreements relating to Channel 3 news provision

77

(1) After section 194 of the 1990 Act there is inserted—

(194A) (1) In this section a “relevant agreement” means an agreement— (a) which is made between all holders of regional Channel 3 licences for securing the appointment by them, in accordance with conditions included in their licences by virtue of section 31A(a), of a single body corporate to be the appointed news provider for the purposes of section 31(2), or (b) which is made between them and the body corporate appointed to be the appointed news provider for the purposes of section 31(2) for purposes connected with the appointment. (2) If a relevant agreement is registered under the Restrictive Trade Practices Act 1976 (“the 1976 Act”), the Director General of Fair Trading shall report to the Secretary of State as to whether it appears to the Director that the agreement falls within subsection (4). (3) If, on receiving a report under subsection (2), it appears to the Secretary of State that the agreement falls within subsection (4), he may give a direction to the Director requiring him not to make an application to the Restrictive Practices Court under Part I of the 1976 Act in respect of the relevant agreement. (4) A relevant agreement falls within this subsection if— (a) those provisions of the agreement by virtue of which the 1976 Act applies to the agreement do not have, and are not intended or likely to have, to any significant extent the effect of restricting, distorting or preventing competition, or (b) all or any of those provisions have, or are intended or likely to have, that effect to a significant extent, but that the effect is not greater than is necessary— (i) in the case of a relevant agreement falling within subsection (1)(a), for securing the appointment by holders of regional Channel 3 licences of a single body corporate to be the appointed news provider for the purposes of section 31(2), or (ii) in the case of a relevant agreement falling within subsection (1)(b), for compliance by them with conditions included in their licences by virtue of section 31(1) and (2). (5) The Secretary of State may vary or revoke any direction given under subsection (3) above if he satisfied that there has been a material change of circumstances such that— (a) the grounds for the direction have ceased to exist, or (b) there are grounds for giving a different direction; and where the Secretary of State so varies or revokes any direction, he shall give notice of the variation or revocation to the Director. (6) In this section— (a) “agreement” and “Director” have the same meaning as in the 1976 Act, and (b) “regional Channel 3 licence” has the same meaning as in Part I.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Variation of regional Channel 3 licence following change of control

78

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Powers of Commission in relation to modification or replacement of networking arrangements

79

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Channel 4 and S4C

Funding of Sianel Pedwar Cymru

80

(1) For section 61 of the 1990 Act there is substituted—

(61) (1) The Secretary of State shall, in the year 1998 and in each subsequent year, pay to the Welsh Authority the prescribed amount as increased by the appropriate percentage. (2) In this section “the prescribed amount” means the 1997 amount or such amount as may from time to time be prescribed under subsection (4). (3) In this section “the 1997 amount” means the amount paid by the Secretary of State to the Welsh Authority by way of interim payment for the year 1997 (under this section as originally enacted). (4) The Secretary of State may, if he is satisfied that it is appropriate to do so having regard to the cost to the Welsh Authority of transmitting S4C and the service referred to in section 57(1A)(a), by order provide that the prescribed amount is to be an amount which is greater than the 1997 amount and is specified in the order. (5) Before making an order under subsection (4) the Secretary of State shall consult the Welsh Authority. (6) In this section “the appropriate percentage”, in relation to any year (“the relevant year”), means the percentage which corresponds to the percentage increase between— (a) the retail prices index for November 1996, and (b) the retail prices index for the month of November in the year preceding the relevant year; and for this purpose “the retail prices index” has the same meaning as in section 19(10). (7) Any sums required by the Secretary of State under this section shall be paid out of money provided by Parliament. (8) An order shall not be made under subsection (4) unless a draft of the order has been laid before and approved by a resolution of each House of Parliament.

(2) In section 62 of the 1990 Act for “sections 26 and 61” there is substituted “ section 26 ”.

(3) Subsections (1) and (2) shall not have effect in relation to payments for any year before 1998.

(4) No payment shall be made to or by the Welsh Authority under subsection (3) or (4) of section 61 of the 1990 Act (as originally enacted) for the year 1997; and in this subsection “the Welsh Authority” has the same meaning as in the 1990 Act.

Public service fund of Sianel Pedwar Cymru

81

(1) After section 61 of the 1990 Act there is inserted—

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