Legalize / United Kingdom / Public General Act

Communications Act 2003

Type Public General Act

Publication 2003-07-17

Last updated 2026-04-06

State In force

Department Statute Law Database

Source legislation.gov.uk

articles 1

Reform history JSON API

(9) For the purposes of this paragraph an electronic communications network is not an appropriate network in relation to so much of a channel or other service as is provided only for a particular area or locality of Wales unless it is a network by means of which electronic communications services are provided to persons in that area or locality

(10) In sub-paragraph (8) “public electronic communications service” and “end-user” each has the same meaning as in Chapter 1 of Part 2.

(11) An order under section 411 must not appoint a day for provisions of this paragraph to come into force that falls less than six months after the day on which the order is made.

Supply of services by satellite in certain areas

6

It shall be the duty of the Welsh Authority—

(a) to join with the providers of other must-provide services in entering into and maintaining arrangements satisfying the requirements of section 274; and

(b) to comply with the requirements of any arrangements imposed by OFCOM for the purposes of conditions under subsection (2) of that section.

Programming quotas for independent productions

7

(1) It shall be the duty of S4C to secure that, in each year—

(a) it makes available qualifying audiovisual content that includes a range and diversity of independent productions commissioned in accordance with the code drawn up under paragraph 10, and

(b) the duration (in total) of those independent productions is at least the number of hours specified by order of the Secretary of State.

(2) In this paragraph—

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

(b) a reference to independent productions is a reference to programmes of such description as the Secretary of State may by order specify as describing the programmes that are to be independent productions for the purposes of this paragraph; and

(c) a reference to a range of independent productions is a reference to a range of such productions in terms of cost of acquisition as well as in terms of the types of programme involved.

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

(4) The Secretary of State may also by order provide for S4C to have the duty set out in sub-paragraph (5), either instead of or as well as the one set out in sub-paragraph (1).

(5) That duty is a duty to secure that —

(a) in each year, it makes available qualifying audiovisual content that includes a range and diversity of independent productions commissioned in accordance with the code drawn up under paragraph 10, and

(b) the cost (in total) of the acquisition of those independent productions is at least the amount specified in the order.

(6) The power to make an order under sub-paragraph (4) includes power to provide that S4C are again to be subject to a duty to which they have previously ceased to be subject by virtue of such an order, in addition to or instead of the duty to which they are subject (apart from the exercise of that power) by virtue of this paragraph.

(7) The Secretary of State is not to make an order for S4C to be or to cease to be subject to the duty mentioned in sub-paragraph (1) or (5) unless—

(a) OFCOM have made a recommendation to him that S4C should be subject to that duty, or should cease to be subject to it; and

(b) the order gives effect to that recommendation.

(8) S4C must comply with directions given to them by OFCOM for the purpose of—

(a) carrying forward to one or more subsequent years determined in accordance with the direction any shortfall for any year in their compliance with the duties imposed by virtue of sub-paragraph (1) or (4); and

(b) thereby increasing the number of hours or (as the case may be) the amount applicable for the purposes of those duties to the subsequent year or years.

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

(10) Before making an order under this paragraph the Secretary of State must consult OFCOM, the BBC and S4C.

(11) No order is to be made containing provision authorised by this paragraph unless a draft of the order has been laid before Parliament and approved by a resolution of each House.

(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(13) In this paragraph—

“acquisition”, in relation to a programme, includes commissioning and acquiring a right to include it in a service or to have it broadcast;

“programme” does not include an advertisement; ...

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

(14) See also sections 278B and 278C (which make further provision for the interpretation of this paragraph etc).

Programme quotas for original productions

8

(1) It shall be the duty of S4C to secure that, in each year—

(a) it makes available qualifying audiovisual content that includes a range of original productions,

(b) the duration (in total) of those original productions is at least the number of hours determined in accordance with sub-paragraph (1B), and

(c) if OFCOM so provide in a direction given to S4C, the additional peak viewing time objective described in sub-paragraph (1A) is met.

(1A) The additional peak viewing time objective is that (out of the number of hours determined for the purposes of sub-paragraph (1)(b)) at least the number of hours determined in accordance with sub-paragraph (1B) is allocated to the broadcasting of original productions included in S4C Digital at peak viewing times.

(1B) A determination for the purposes of sub-paragraph (1)(b) or (1A) is to be—

(a) by agreement between S4C and OFCOM, or

(b) in default of agreement, by a direction given by OFCOM to S4C specifying the number of hours.

(1C) Before giving a direction under sub-paragraph (1)(c), OFCOM must consult S4C.

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

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

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

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

(6) References in this paragraph ... to original productions are references to programmes of such description as the Secretary of State may by order specify as describing the programmes that are to be original productions for the purposes of this paragraph.

(7) The power to specify descriptions of programmes by order under sub-paragraph (6) includes power to confer such discretions on OFCOM as the Secretary of State thinks fit.

(7A) An order under sub-paragraph (6) may—

(a) authorise OFCOM to give a direction to S4C that original productions of a description specified in the direction may not be counted towards meeting S4C’s duty under sub- paragraph (1);

(b) require OFCOM to consult S4C before giving such a direction;

(c) require OFCOM to prepare and publish guidance about the determination of whether an original production falls within a description specified in a direction given by virtue of paragraph (a);

(d) require S4C to have regard to that guidance.

(8) Before making an order under this paragraph the Secretary of State must consult OFCOM, the BBC and S4C.

(9) No order is to be made containing provision authorised by this paragraph unless a draft of the order has been laid before Parliament and approved by a resolution of each House.

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

(11) In this paragraph—

“peak viewing time” ... means a time that is determined in accordance with sub-paragraph (12) to be a peak viewing time for S4C Digital; and

“programme” does not include an advertisement.

(12) The determination for the purposes of this paragraph of peak viewing times is to be—

(a) by agreement between S4C and OFCOM; or

(b) in default of agreement, by a direction given by OFCOM to S4C determining those times.

(13) See also sections 278B and 278C (which make further provision for the interpretation of this paragraph etc).

News and current affairs programmes

9

(1) It shall be the duty of S4C, in relation to their designated public services, to secure—

(a) that the programmes included in each service include news programmes and current affairs programmes;

(b) that the news programmes and current affairs programmes included in each service deal with both national and international matters; and

(c) that the news programmes so included are broadcast for viewing at intervals throughout the period for which the service is provided.

(2) It shall be the duty of S4C, in relation to each of their designated public services, to ensure that the news programmes and current affairs programmes included in each service are of high quality.

(3) It shall also be the duty of S4C, in relation to each of their designated public services, to secure that in each year—

(a) the time allocated to the broadcasting of news programmes included in the service, and

(b) the time allocated to the broadcasting of current affairs programmes so included,

each constitutes no less than the proportion fixed under sub-paragraph (5) of the time allocated to the broadcasting of all the programmes included in the service.

(4) It is the further duty of S4C, in relation to each of their designated public services, to secure that the time allocated—

(a) to the broadcasting of news programmes included in the service, and

(b) to the broadcasting of current affairs programmes so included,

is, in each case, split, in the manner fixed under sub-paragraph (5), between peak viewing times and other times.

(5) The fixing for the purposes of sub-paragraph (3) or (4) of a proportion or manner of splitting allocated time is to be—

(a) by agreement between S4C and OFCOM; or

(b) in default of agreement, by a direction given by OFCOM to S4C fixing the proportion or manner according to whatever OFCOM consider appropriate.

(6) The agreement or direction may, for the purposes of sub-paragraph (4), fix a proportion for the purposes of sub-paragraph (3) in terms of the cumulative effect of two different minimum proportions, one applying to peak viewing times and the other to other times.

(7) The services that are designated public services for the purposes of this paragraph are—

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

(b) S4C Digital; and

(c) any of S4C’s other public television services which is designated in writing by the Secretary of State for the purposes of this paragraph ....

(8) In this paragraph “peak viewing time”, in relation to a service, means a time that is determined in accordance with sub-paragraph (9) to be a peak viewing time for that service.

(9) The determination for the purposes of this paragraph of a peak viewing time is to be—

(a) by agreement between S4C and OFCOM; or

(b) in default of agreement, by a direction given by OFCOM to S4C determining that time.

Code relating to programme commissioning

10

(1) It shall be the duty of S4C to draw up and from time to time revise a code of practice setting out the principles that are to be applied —

(a) when they or an S4C company are for a relevant purpose agreeing terms for the commissioning of independent productions , or

(b) when they are agreeing terms for the commissioning of independent productions that will be included in a qualifying audiovisual service other than one to which paragraph (a) relates but which they wish to count towards meeting a duty imposed by virtue of paragraph 7(1) or (4).

(2) A relevant purpose is a purpose connected with the provision by S4C or an S4C company of a television programme service.

(3) It shall also be the duty of S4C—

(a) at all times to comply with the code of practice which is for the time being in force under this paragraph;

(b) to take all reasonable steps for securing that the code is complied with by S4C companies;

(c) to exercise their power to revise that code to take account of revisions from time to time of the guidance issued by OFCOM for the purposes of this paragraph; and

(d) to comply with such directions as may be given to S4C by OFCOM for securing that they properly perform their duties under paragraphs (a) and (b).

(4) The code for the time being in force under this paragraph must be such as to secure, in the manner described in guidance issued by OFCOM—

(a) that a reasonable timetable is applied to negotiations for the commissioning of an independent production and for the conclusion of a binding agreement;

(b) that there is sufficient clarity when an independent production is commissioned about the different categories of rights to broadcast or otherwise to make use of or exploit the commissioned production that are being disposed of;

(d) that satisfactory arrangements are made about the duration and exclusivity of those rights;

(e) that procedures exist for reviewing the arrangements adopted in accordance with the code and for demonstrating compliance with it;

(f) that those procedures include requirements for the monitoring of the application of the code and for the making of reports to OFCOM;

(g) that provision is made for resolving disputes arising in respect of the provisions of the code (by independent arbitration or otherwise) in a manner that appears to OFCOM to be appropriate.

(h) that such information about the application of the code as OFCOM consider appropriate is given to persons who make independent productions that are to be commissioned in accordance with the code.

(5) S4C must also ensure that the drawing up or revision of a code by virtue of this paragraph is in accordance with guidance issued by OFCOM as to—

(a) the times when the code is to be drawn up or reviewed with a view to revision;

(b) the consultation to be undertaken before a code is drawn up or revised;

(6) S4C must submit to OFCOM for approval a draft of—

(a) every code that is required to be drawn up under this paragraph; and

(b) every revision made by S4C of such a code.

(7) A code drawn up by S4C or a revision of such a code —

(a) is to have effect for the purposes of this paragraph only if approved by OFCOM; and

(b) if approved by OFCOM subject to modifications, is to have effect with those modifications.

(8) OFCOM—

(a) must issue and may from time to time revise guidance for the purposes of this paragraph;

(b) must ensure that there is always guidance for those purposes in force;

(c) must, before issuing their guidance or revised guidance, consult the providers of licensed public service channels, persons who make independent productions (or persons appearing to OFCOM to represent them), the BBC and S4C; and

(d) must publish their guidance or revised guidance in such manner as they think appropriate.

(9) Guidance issued by OFCOM for the purposes of this paragraph must be general guidance and is not to specify particular terms to be included in agreements to which the guidance relates.

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

(11) In this paragraph “independent production” has the same meaning as in paragraph 7.

(12) See also sections 278B and 278C (which make further provision for the interpretation of this paragraph etc).

Co-operation with the public teletext provider

11

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

Programme standards

12

It shall be the duty of S4C in relation to their public television services to observe the standards set under section 319.

13

It shall be the duty of S4C to comply with a direction given to them by OFCOM with respect to the establishment of procedures for the handling and resolution of complaints about the observance by S4C of standards set under section 319.

14

(1) It shall be the duty of S4C to comply with directions given to them by OFCOM with respect to any of the matters mentioned in sub-paragraph (2).

(2) Those matters are—

(a) the exclusion from any of S4C’s public television services of a particular advertisement, or its exclusion in particular circumstances;

(b) the descriptions of advertisements and methods of advertising to be excluded from the services so provided (whether generally or in particular circumstances); ...

(c) the methods of sponsorship to be excluded from those services (whether generally or in particular circumstances) ; and

(d) the forms and methods of product placement to be excluded from those services (including descriptions of products, services or trade marks product placement of which is to be excluded) (whether generally or in particular circumstances).

15

(1) This paragraph applies if OFCOM are satisfied—

(a) that S4C have failed in any respect to perform any of their duties under—

(i) paragraphs 12 to 14,

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

(iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iv) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(v) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(vi) ... and

(b) that the failure can be appropriately remedied by the inclusion in any or all of S4C’s public television services ... of a correction or a statement of findings.

(2) OFCOM may direct S4C to include a correction or a statement of findings (or both) in any one or more of their public television services ... .

(3) A direction may require the correction or statement of findings to be in such form, and to be included in programmes at such time or times, as OFCOM may determine.

(4) OFCOM are not to give a direction under this paragraph unless they have given S4C a reasonable opportunity of making representations to them about the matters appearing to OFCOM to provide grounds for the giving of the direction.

(5) Where S4C include a correction or a statement of findings in any of their public television services ... in pursuance of a direction under this paragraph, S4C may announce that they are doing so in pursuance of such a direction.

(6) For the purposes of this paragraph a statement of findings, in relation to a case in which OFCOM are satisfied that S4C have failed to perform a duty mentioned in sub-paragraph (1)(a) , is a statement of OFCOM’s findings in relation to that failure.

Directions with respect to advertising

16

(1) S4C must comply with directions given to them by OFCOM with respect to any of the matters mentioned in sub-paragraph (2).

(2) Those matters are—

(a) the maximum amount of time to be given to advertisements in any hour or other period;

(b) the minimum interval which must elapse between any two periods given over to advertisements;

(d) the exclusion of advertisements from a specified part of ... S4C Digital.

(3) Directions under this paragraph—

(a) may be either general or specific;

(b) may be qualified or unqualified; and

(c) may make different provision for different parts of the day, different days of the week, different types of programmes or for other differing circumstances.

(4) In giving a direction under this paragraph, OFCOM shall take account of such of the international obligations of the United Kingdom as the Secretary of State may notify to them for the purposes of this paragraph.

Fairness standards

17

It shall be the duty of S4C to secure the observance—

(a) in connection with the provision of their public television services, and

(b) in relation to the programmes included in those services,

of the code for the time being in force under section 107 of the 1996 Act (the fairness code).

Party political broadcasts

18

(1) It shall be the duty of S4C to include—

(a) party political broadcasts, and

(b) referendum campaign broadcasts,

in every designated public service of theirs.

(2) S4C must prepare, publish and from time to time review and revise their policy with respect to—

(a) party political broadcasts and referendum campaign broadcasts; and

(b) the manner in which they propose to perform their duty under sub-paragraph (1).

(3) S4C’s policy may, in particular, include provision for determining—

(a) the political parties on whose behalf party political broadcasts may be made;

(b) in relation to each political party on whose behalf such broadcasts may be made, the length and frequency of the broadcasts; and

(c) in relation to each designated organisation on whose behalf referendum campaign broadcasts are required to be broadcast, the length and frequency of such broadcasts.

(4) That policy is to have effect subject to sections 37 and 127 of the Political Parties, Elections and Referendums Act 2000 (c. 41) (only registered parties and designated organisations to be entitled to party political broadcasts or referendum campaign broadcasts).

(5) In preparing or revising their policy with respect to the inclusion of party political broadcasts or referendum campaign broadcasts in their designated public services, S4C must have regard to—

(a) any views expressed for the purposes of this paragraph by the Electoral Commission; and

(b) any rules made by OFCOM under section 333.

(6) The services that are designated public services for the purposes of this paragraph are—

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

(b) S4C Digital; and

(c) any of S4C’s other public television services which is designated in writing by the Secretary of State for the purposes of this paragraph ....

(7) In this paragraph—

“designated organisation”, in relation to a referendum, means a person or body designated by the Electoral Commission under section 108 of the Political Parties, Elections and Referendums Act 2000 in respect of that referendum; and

“referendum campaign broadcast” has the meaning given by section 127 of that Act.

Duty to publicise complaints procedures etc.

19

(1) It shall be the duty of S4C to make arrangements for securing that the matters mentioned in sub-paragraph (2) are brought to the attention of the public (whether by means of broadcasts or otherwise).

(2) Those matters are—

(a) OFCOM’s functions under Part 5 of the 1996 Act in relation to services provided by S4C; and

(b) any procedures established by OFCOM or S4C for the handling and resolution of complaints about the observance by S4C of standards set under section 319 or about compliance by S4C with the requirements imposed by section 368D and section 368E(4), except the requirements mentioned in sub-paragraph (3).

(3) The requirements mentioned in this sub-paragraph are—

(a) the requirements imposed by sections 368D(1) and 368E(4) so far as they relate to advertising, and

(b) the requirement imposed by section 368D(3)(za).

Monitoring of programmes

20

(1) It shall be the duty of S4C—

(a) in respect of every programme included in any of their public television services, to retain a recording of the programme in the form, and for the period, specified by OFCOM;

(b) to comply with any request to produce such recordings to OFCOM for examination or reproduction; and

(c) to comply, to the extent that they are able to do so, with any request to produce to OFCOM a script or transcript of a programme included in any of their public television services.

(2) The period specified for the purposes of sub-paragraph (1)(a) must be a period not exceeding ninety days.

Compliance with international obligations

21

(1) OFCOM may give S4C such directions as OFCOM consider appropriate for securing that all relevant international obligations are complied with.

(2) It shall be the duty of S4C to comply with a direction under this paragraph.

(3) Before giving a direction under this paragraph, OFCOM must consult S4C.

(4) In this paragraph “relevant international obligations” means the international obligations of the United Kingdom which have been notified to OFCOM by the Secretary of State for the purposes of this paragraph.

Services for the deaf and visually impaired

22

It shall be the duty of S4C to observe the code for the time being in force under section 303 in the provision of—

(a) S4C Digital; and

(b) so much of any of S4C’s other public television services as is provided in digital form.

Equality of opportunity

23

(1) It shall be the duty of S4C to make such arrangements as they consider appropriate for promoting, in relation to employment with S4C, equality of opportunity—

(a) between men and women; and

(b) between persons of different racial groups.

(2) It shall be the duty of S4C to make arrangements for promoting, in relation to employment with S4C, the equalisation of opportunities for disabled persons.

(3) S4C shall also make such arrangements as they consider appropriate for the training and retraining of persons whom they employ in or in connection with—

(a) the provision of one or more of their public services; or

(b) the making of programmes to be included in one or more of those services.

(4) S4C—

(a) shall take all such steps as they consider appropriate for making persons affected by any arrangements made in pursuance of sub-paragraphs (1) to (3) aware of the arrangements (including the publication of the arrangements in such manner as they think fit);

(b) shall review the arrangements from time to time; and

(c) shall, from time to time (and at least annually), publish, in such manner as they consider appropriate, their observations on the current operation and effectiveness of the arrangements.

(5) Before making any arrangements in pursuance of any of sub-paragraphs (1) to (3) or determining the manner in which they will comply with sub-paragraph (4), S4C must consult OFCOM.

(6) In this paragraph—

“disabled” has the same meaning as in the Equality Act 2010 or, in Northern Ireland, the Disability Discrimination Act 1995 (c. 50);

“racial group” has the same meaning as in the Race Relations Act 1976 (c. 74) the Equality Act 2010 or, in Northern Ireland, the Race Relations (Northern Ireland) Order 1997 (S.I. 1997/869 (N.I. 6)).

(7) The Secretary of State may by order amend sub-paragraph (1) by adding any other form of equality of opportunity that he considers appropriate to that sub-paragraph.

(8) No order is to be made containing provision authorised by sub-paragraph (7) unless a draft of the order has been laid before Parliament and approved by a resolution of each House.

Meaning of Welsh Authority’s public services

24

(1) In this Part of this Schedule, references to S4C’s public services are references to the following—

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

(b) S4C Digital; and

(2) References in this Schedule to a public television service of S4C are references to any public service of S4C which is a television programme service.

SCHEDULE 13

Part 1 — Broadcasting Act 1990

Preliminary

1

The 1990 Act shall be amended as follows.

Revocation of television services licence

2

(1) In subsection (3) of section 18 (penalty on revocation of television services licence), for “a financial penalty of the prescribed amount” there shall be substituted “ a specified financial penalty ”.

(2) For subsection (4) of that section (amount of penalty) there shall be substituted—

(3A) The maximum amount which a person may be required to pay by way of a penalty under subsection (3) is the maximum penalty given by subsections (3B) and (3C). (3B) In a case where the licence is revoked under this section or the penalty is imposed before the end of the first complete accounting period of the licence holder to fall within the period for which the licence is in force, the maximum penalty is whichever is the greater of— (a) £500,000; and (b) 7 per cent. of the amount which OFCOM estimate would have been the qualifying revenue for the first complete accounting period of the licence holder falling within the period for which the licence would have been in force. (3C) In any other case, the maximum penalty is whichever is the greater of— (a) £500,000; and (b) 7 per cent. of the qualifying revenue for the last complete accounting period of the licence holder falling within the period for which the licence is in force. (3D) Section 19(2) to (6) applies for estimating or determining qualifying revenue for the purposes of subsection (3B) or (3C) above.

(3) This paragraph applies only in a case of a revocation in relation to which—

(a) the notice required by section 18(2) of the 1990 Act, or

(b) the notice revoking the licence,

is served after the commencement of this paragraph.

Licences for Channel 3 services and for Channels 4 and 5

3

(1) For subsection (2) of section 41 (penalties for failure by holder of licence for Channel 3 services, Channel 4 or Channel 5 to comply with licence conditions or directions) there shall be substituted—

(1A) The amount of a financial penalty imposed on a person in pursuance of subsection (1)(a) shall not exceed 5 per cent. of the qualifying revenue for the licence holder’s last complete accounting period falling within the period for which his licence has been in force (“the relevant period”). (1B) In relation to a person whose first complete accounting period falling within the relevant period has not ended when the penalty is imposed, subsection (1A) is to be construed as referring to 5 per cent. of the amount which OFCOM estimate to be the qualifying revenue for that accounting period. (1C) Section 19(2) to (6) applies for determining or estimating qualifying revenue for the purposes of subsection (1A) or (1B) above.

(2) This paragraph applies in relation to a failure to comply with a condition or direction only if it is one occurring after the commencement of this paragraph.

Restricted services licences

4

(1) In subsection (2) of section 42B (application of sections 40 to 42 to licensing of restricted services), for “subsections (3) and (4)” there shall be substituted “ subsections (3) to (3C) ”.

(2) In subsection (3) of that section—

(a) for “subsection (2)” there shall be substituted “ subsections (1A) to (1C) ”; and

(b) for the words from “shall not exceed whichever is the greater” onwards there shall be substituted “ is the maximum penalty given by subsection (3A). ”

(3) For subsection (4) of that section (penalties for failure to comply with conditions or directions) there shall be substituted—

(3A) The maximum penalty is whichever is the greater of— (a) £250,000; and (b) 5 per cent. of the qualifying revenue for the licence holder’s last complete accounting period falling within the period for which his licence has been in force (“the relevant period”). (3B) In relation to a person whose first complete accounting period falling within the relevant period has not ended when the penalty is imposed, subsection (3A)(b) is to be construed as referring to 5 per cent. of the amount which OFCOM estimate to be the qualifying revenue for that accounting period. (3C) Section 19(2) to (6) applies for determining or estimating qualifying revenue for the purposes of subsection (3A) or (3B) above.

(4) This paragraph applies in relation to a failure to comply with a condition or direction only if it is one occurring after the commencement of this paragraph.

Additional television services licences

5

(1) For subsection (2) of section 55 (penalties for failure by holder of licence for additional television service to comply with licence conditions or directions) there shall be substituted—

(1A) The amount of a financial penalty imposed on a person in pursuance of subsection (1) shall not exceed 5 per cent. of the qualifying revenue for the licence holder’s last complete accounting period falling within the period for which his licence has been in force (“the relevant period”). (1B) In relation to a person whose first complete accounting period falling within the relevant period has not ended when the penalty is imposed, subsection (1A) is to be construed as referring to 5 per cent. of the amount which OFCOM estimate to be the qualifying revenue for that accounting period. (1C) Section 52(2) applies for determining or estimating qualifying revenue for the purposes of subsection (1A) or (1B) above.

(2) This paragraph applies in relation to a failure to comply with a condition or direction only if it is one occurring after the commencement of this paragraph.

Revocation of national sound broadcasting licence

6

(1) In subsection (3) of section 101 (penalty on revocation of national sound broadcasting licence), for “a financial penalty of the prescribed amount” there shall be substituted “ a specified financial penalty ”.

(2) For subsection (4) of that section (amount of penalty) there shall be substituted—

(3A) The maximum amount which a person may be required to pay by way of a penalty under subsection (3) is the maximum penalty given by subsections (3B) and (3C). (3B) In a case where the licence is revoked under this section or the penalty is imposed before the end of the first complete accounting period of the licence holder to fall within the period for which the licence is in force, the maximum penalty is whichever is the greater of— (a) £250,000; and (b) 7 per cent. of the amount which OFCOM estimate would have been the qualifying revenue for the first complete accounting period of the licence holder falling within the period for which the licence would have been in force. (3C) In any other case, the maximum penalty is whichever is the greater of— (a) £250,000; and (b) 7 per cent. of the qualifying revenue for the last complete accounting period of the licence holder falling within the period for which the licence is in force. (3D) Section 102(2) to (6) applies for estimating or determining qualifying revenue for the purposes of subsection (3B) or (3C) above.

(3) This paragraph applies only in a case of a revocation in relation to which—

(a) the notice required by section 101(2) of the 1990 Act, or

(b) the notice revoking the licence,

is served after the commencement of this paragraph.

Licences for analogue sound services

7

(1) For subsection (2) of section 110 (penalties for failure by holder of national sound broadcasting licence to comply with licence conditions or directions) there shall be substituted—

(1A) The maximum amount which the holder of a national licence may be required to pay by way of a financial penalty imposed in pursuance of subsection (1)(a) is the maximum penalty given by subsection (1B). (1B) The maximum penalty is whichever is the greater of— (a) £250,000; and (b) 5 per cent. of the qualifying revenue for his last complete accounting period falling within the period for which his licence has been in force (“the relevant period”). (1C) In relation to a person whose first complete accounting period falling within the relevant period has not ended when the penalty is imposed, subsection (1B)(b) is to be construed as referring to 5 per cent. of the amount which OFCOM estimate to be the qualifying revenue for that accounting period. (1D) Section 102(2) to (6) applies for determining or estimating qualifying revenue for the purposes of subsection (1B) or (1C) above.

(2) In subsection (3) of that section (maximum penalty for failure by holder of a sound broadcasting licence that is not a national licence to comply with licence conditions or directions), for “£50,000” there shall be substituted “ £250,000 ”.

(3) This paragraph applies in relation to a failure to comply with a condition or direction only if it is one occurring after the commencement of this paragraph.

Additional radio services licences

8

(1) For subsection (2) of section 120 (penalties for failure by holder of additional radio services licence to comply with licence conditions or directions) there shall be substituted—

(1A) The amount of a financial penalty imposed on a person in pursuance of subsection (1) shall not exceed 5 per cent. of the qualifying revenue for the licence holder’s last complete accounting period falling within the period for which his licence has been in force (“the relevant period”). (1B) In relation to a person whose first complete accounting period falling within the relevant period has not ended when the penalty is imposed, subsection (1A) is to be construed as referring to 5 per cent. of the amount which OFCOM estimate to be the qualifying revenue for that accounting period. (1C) Section 118(2) applies for determining or estimating qualifying revenue for the purposes of subsection (1A) or (1B) above.

(2) This paragraph applies in relation to a failure to comply with a condition or direction only if it is one occurring after the commencement of this paragraph.

Power to amend penalties under the 1990 Act

9

(1) The Secretary of State may by order amend any of the provisions of the 1990 Act specified in sub-paragraph (2) by substituting a different sum for the sum for the time being specified in that provision.

(2) Those provisions are—

(a) section 18(3B)(a) and (3C)(a);

(b) section 42B(3A)(a);

(d) section 110(1B)(a) and (3).

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

Part 2 — Broadcasting Act 1996

Preliminary

10

The 1996 Act shall be amended as follows.

Revocation of television multiplex licences

11

(1) In subsection (5) of section 11 (penalty on revocation of television multiplex licence), the words from “not exceeding” onwards shall be omitted.

(2) For subsection (6) of that section (amount of penalty) there shall be substituted—

(5A) The maximum amount which a person may be required to pay by way of a penalty under subsection (5) is the maximum penalty given by subsections (5B) and (5C). (5B) In a case where the licence is revoked under this section or the penalty is imposed before the end of the first complete accounting period of the licence holder to fall within the period for which the licence is in force, the maximum penalty is whichever is the greater of— (a) £500,000; and (b) 7 per cent. of the amount which OFCOM estimate would have been the multiplex revenue for the first complete accounting period of the licence holder falling within the period for which the licence would have been in force. (5C) In any other case, the maximum penalty is whichever is the greater of— (a) £500,000; and (b) 7 per cent. of the multiplex revenue for the last complete accounting period of the licence holder falling within the period for which the licence is in force. (5D) Section 14 applies for estimating or determining multiplex revenue for the purposes of subsection (5B) or (5C) above.

(3) This paragraph applies only in a case of a revocation in relation to which—

(a) the notice required by section 11(2) of the 1996 Act, or

(b) the notice revoking the licence,

is served after the commencement of this paragraph.

Attribution of television multiplex revenue

12

(1) In subsection (1) of section 15 (attribution of multiplex revenue for the purposes of section 17(3)), for “17(3)” there shall be substituted “ 17(2A) and (2B) ”.

(2) In subsection (2) of that section (attribution for the purposes of sections 23(3) and 27(3)), for “section 23(3) or section 27(3)” there shall be substituted “ sections 23(2A) to (5) and 27(2A) to (5) ”.

(3) This paragraph has effect in relation only to cases in which section 17, 23 or 27 applies as amended by this Schedule.

Multiplex licences

13

(1) In subsection (2) of section 17 (penalty for failure by holder of television multiplex licence to comply with licence conditions or directions), for the words from “whichever is the greater” onwards there shall be substituted “ the maximum penalty given by subsection (2A). ”

(2) For subsection (3) of that section (maximum penalties) there shall be substituted—

(2A) The maximum penalty is whichever is the greater of— (a) £250,000; and (b) 5 per cent. of the share of multiplex revenue attributable to the licence holder for his last complete accounting period falling within the 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 15(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.

(3) This paragraph applies in relation to a failure to comply with a condition or direction only if it is one occurring after the commencement of this paragraph.

Digital television programme licences

14

(1) In subsection (2) of section 23 (penalty for failure by holder of digital television programme licence to comply with licence conditions or directions), for the words from “whichever is the greater” onwards there shall be substituted “ the maximum penalty given by subsection (2A). ”

(2) For subsection (3) of that section (maximum penalties) there shall be substituted—

(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 television multiplex services and general multiplex services in respect of relevant accounting periods.

(3) In subsection (4) of that section (meaning of “relevant accounting period”), for “subsection (3)(a)” there shall be substituted “ subsection (2A) ”.

(4) In subsection (5) of that section, for “not yet ended, then for the purposes of subsection (3)” there shall be substituted “ not ended when the penalty is imposed, then for the purposes of this section ”.

(5) Before subsection (6) of that section there shall be inserted—

(5B) Section 15(2) and (3) applies for determining or estimating the share of multiplex revenue attributable to a person for the purposes of subsection (2A) or (5) above.

(6) This paragraph applies in relation to a failure to comply with a condition or direction only if it is one occurring after the commencement of this paragraph.

Digital additional television services licences

15

(1) In subsection (2) of section 27 (penalty for failure by holder of digital additional services licence to comply with licence conditions or directions), for the words from “whichever is the greater” onwards there shall be substituted “ the maximum penalty given by subsection (2A). ”

(2) For subsection (3) of that section (maximum penalties) there shall be substituted—

(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 television multiplex services and general multiplex services in respect of relevant accounting periods.

(3) In subsection (4) of that section (meaning of “relevant accounting period”), for “subsection (3)(a)” there shall be substituted “ subsection (2A) ”.

(4) In subsection (5) of that section, for “not yet ended, then for the purposes of subsection (3)” there shall be substituted “ not ended when the penalty is imposed, then for the purposes of this section ”.

(5) Before subsection (6) of that section there shall be inserted—

(5B) Section 15(2) and (3) applies for determining or estimating the share of multiplex revenue attributable to a person for the purposes of subsection (2A) or (5) above.

(6) This paragraph applies in relation to a failure to comply with a condition or direction only if it is one occurring after the commencement of this paragraph.

Power to amend digital television penalties

16

For section 36(2) and (3) (provisions that may be amended and negative resolution procedure) there shall be substituted—

(2) The provisions referred to in subsection (1) are— (a) section 11(5B)(a) and (5C)(a); (b) section 17(2A)(a); (c) section 23(2A)(a); and (d) section 27(2A)(a). (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.

Revocation of radio multiplex licences

17

(1) In section 53(5) (maximum penalty on revocation of radio multiplex licence), for “£50,000”, in both places, there shall be substituted “ £250,000 ”.

(2) This paragraph applies only in a case of a revocation in relation to which—

(a) the notice required by section 53(2) of the 1996 Act, or

(b) the notice revoking the licence,

is served after the commencement of this paragraph.

Attribution of radio multiplex revenue

18

(1) In subsection (1) of section 57 (attribution of multiplex revenue for the purposes of sections 59(3)), for “59(3)” there shall be substituted “ 59(2A) and (2B) ”.

(2) In subsection (2) of that section, (attribution for the purposes of sections 62(3) and 66(3)), for “section 62(3) or section 66(3)” there shall be substituted “ sections 62(2A) to (5) and 66(2A) to (5) ”.

(3) This paragraph has effect in relation only to cases in which section 59, 62 or 66 applies as amended by this Schedule.

Contraventions of conditions of radio multiplex licences

19

(1) In subsection (2) of section 59 (penalty for failure by holder of radio multiplex licence to comply with licence conditions or directions), for the words from “whichever is the greater” onwards there shall be substituted “ the maximum penalty given by subsection (2A). ”

(2) For subsection (3) of that section (maximum penalties) there shall be substituted—

(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.

(3) In subsection (4) of that section (maximum penalty to be imposed on holder of local radio multiplex licences for failure to comply with conditions or directions), for “£50,000” there shall be substituted “ £250,000 ”.

(4) This paragraph applies in relation to a failure to comply with a condition or direction only if it is one occurring after the commencement of this paragraph.

Digital sound programme licences

20

(1) In subsection (2) of section 62 (penalty for failure by holder of digital sound programme licence to comply with licence conditions or directions), for the words from “whichever is the greater” onwards there shall be substituted “ the maximum penalty given by subsection (2A). ”

(2) For subsection (3) of that section (maximum penalties) there shall be substituted—

(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.

(3) In subsection (4) of that section (meaning of “relevant accounting period”), for “subsection (3)” there shall be substituted “ subsection (2A) ”.

(4) In subsection (5) of that section, for “not yet ended, then for the purposes of subsection (3)” there shall be substituted “ not ended when the penalty is imposed, then for the purposes of this section ”.

(5) After that subsection there shall be inserted—

(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).

(6) In subsection (6) of that section (maximum penalty where licence is a local digital sound programme licence), for “£50,000” there shall be substituted “ £250,000 ”.

(7) This paragraph applies in relation to a failure to comply with a condition or direction only if it is one occurring after the commencement of this paragraph.

Licences for digital additional sound services

21

(1) In subsection (2) of section 66 (penalty for failure by holder of digital additional sound services licence to comply with licence conditions or directions), for the words from “whichever is the greater” onwards there shall be substituted “ the maximum penalty given by subsection (2A). ”

(2) For subsection (3) of that section (maximum penalties) there shall be substituted—

(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.

(3) In subsection (4) of that section (maximum penalty where licence is a local digital sound programme licence), for “£50,000” there shall be substituted “ £250,000 ”.

(4) In subsection (5) of that section (meaning of “relevant accounting period”) for “subsection (3)” there shall be substituted “ subsection (2A) ”.

(5) In subsection (6) of that section, for “not yet ended, then for the purposes of subsection (3)” there shall be substituted “ not ended when the penalty is imposed, then for the purposes of this section ”.

(6) After that subsection there shall be inserted—

(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).

(7) This paragraph applies in relation to a failure to comply with a condition or direction only if it is one occurring after the commencement of this paragraph.

Power to amend digital television penalties

22

For section 69(2) and (3) (provisions that may be amended and negative resolution procedure) there shall be substituted—

(2) The provisions referred to in subsection (1) are— (a) section 53(5)(a) and (b)(i); (b) section 59(2A)(a) and (4); (c) section 62(2A)(a) and (6); and (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.

SCHEDULE 14

Part 1 — Channel 3 services

Ban on newspaper proprietors holding Channel 3 licences

1

(1) A person is not to hold a licence to provide a Channel 3 service if—

(a) he runs a national newspaper which for the time being has a national market share of 20 per cent. or more; or

(b) he runs national newspapers which for the time being together have a national market share of 20 per cent. or more.

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

(3) For the purposes of this paragraph, where there is a licence to provide a Channel 3 service, each of the following shall be treated as holding that licence—

(a) the actual licence holder; and

(b) every person connected with the actual licence holder.

Restrictions on participation

2

(1) A person who is—

(a) the proprietor of a national newspaper which for the time being has a national market share of 20 per cent. or more, or

(b) the proprietor of national newspapers which for the time being together have a national market share of 20 per cent. or more,

is not to be a participant with more than a 20 per cent. interest in a body corporate which is the holder of a licence to provide a Channel 3 service.

(2) A person who is the holder of a licence to provide a Channel 3 service is not to be a participant with more than a 20 per cent. interest in a body corporate which is a relevant national newspaper proprietor.

(3) A body corporate is not to be a participant with more than a 20 per cent. interest in a body corporate which holds a licence to provide a Channel 3 service if the first body corporate is one in which a relevant national newspaper proprietor is a participant with more than a 20 per cent. interest.

(4) A restriction imposed by this paragraph on participation in a body corporate which is the holder of a Channel 3 licence applies equally to participation in a body corporate which controls the holder of such a licence.

(5) Any restriction on participation imposed by this paragraph—

(a) on the proprietor of a newspaper, or

(b) on the holder of a licence,

is to apply as if he and every person connected with him were one person.

(6) In this paragraph “a relevant national newspaper proprietor” means a person who runs—

(a) a national newspaper which for the time being has a national market share of 20 per cent. or more; or

(b) national newspapers which for the time being together have a national market share of 20 per cent. or more.

National and local newspapers and their respective national and local market shares

3

(1) In this Part of this Schedule references to a national or local newspaper are references to a national or local newspaper circulating wholly or mainly in the United Kingdom or in a part of the United Kingdom.

(2) Where a newspaper is published in different regional editions on the same day, OFCOM have the power to determine whether those regional editions should be treated for the purposes of this Part of this Schedule as constituting—

(a) one national newspaper;

(b) two or more local newspapers; or

(3) In the case of a newspaper which would otherwise be neither a national nor a local newspaper for the purposes of this Part of this Schedule, OFCOM have the power to determine, if they consider it appropriate to do so in the light of—

(a) its circulation and influence in the United Kingdom, or

(b) its circulation or influence in a part of the United Kingdom,

that the newspaper is to be treated as a national or as a local newspaper for such of those purposes as they may determine.

(4) For the purposes of this Part of this Schedule, the national market share of a national newspaper at any time is the percentage of the total number of copies of all national newspapers sold in the United Kingdom in the relevant six months which is represented by the total number of copies of that newspaper sold in the United Kingdom in that six months.

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

(6) In sub-paragraph (4) “the relevant six months” means the six months ending with the last whole calendar month to end before the time in question.

(7) For the purposes of sub-paragraph (4) , the number of copies of a newspaper sold in the United Kingdom... during any period may be taken to be such number as is estimated by OFCOM—

(a) in such manner, or

(b) by reference to such statistics prepared by any other person,

as they think fit.

(8) In relation to a newspaper which is distributed free of charge (rather than sold), references in this paragraph to the number of copies sold include references to the number of copies distributed.

Construction of references to running a newspaper

4

For the purposes of this Part of this Schedule a person runs a ... newspaper if—

(a) he is the proprietor of the newspaper; or

(b) he controls a body which is the proprietor of the newspaper.

Coverage area for a Channel 3 service

5

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

Power to amend Part 1 of Schedule

6

The Secretary of State may by order repeal or otherwise modify any of the restrictions imposed by this Part of this Schedule.

Part 2 — ...

Restriction on holding of national radio multiplex licences

7

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

Restriction on holding of local radio multiplex licences

8

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

Connected persons rules etc.

9

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

Power to amend Part 2 of Schedule

10

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

Part 3 — Local sound programme services

Restriction on holding of local sound broadcasting licences

11

(1) The Secretary of State may by order impose—

(a) requirements prohibiting the holding at the same time by the same person, in the circumstances described in the order, of more than the number of local sound broadcasting licences that is determined in the manner set out in the order;

(b) requirements prohibiting a person from holding even one local sound broadcasting licence in the circumstances described in the order.

(2) The circumstances by reference to which a person may be prohibited under sub-paragraph (1) from holding a local sound broadcasting licence, and the factors that may be used for determining the number of such licences that he may hold, include, in particular—

(a) whether and to what extent the coverage areas of different services provided by that person under different local sound broadcasting licences would overlap;

(b) the sizes of the potential audiences for those services and the times when those services would be made available;

(c) whether and to what extent members of the potential audiences for those services would also be members of the potential audiences for services provided under local sound broadcasting licences held by other persons;

(d) in a case in which members of potential audiences for services so provided by that person would also be members of the potential audiences for services so provided by other persons—

(i) the number of those other persons;

(ii) the coverage areas of their services;

(iii) the sizes of the potential audiences for their services; and

(iv) the times when their services are or will be made available;

(e) whether that person runs one or more national newspapers, and their national market share;

(f) whether and to what extent the whole or a part of the coverage area for a service for which that person would hold a local sound broadcasting licence is or includes an area in which one or more local newspapers run by him is circulating, and the newspapers' local market share;

(g) whether and to what extent the whole or a part the coverage area for which that person would hold a local sound broadcasting licence is or is included in the coverage area of a regional Channel 3 service for which he also holds a licence.

(3) For the purposes of this paragraph the coverage area for a service provided under a local sound broadcasting licence or a Channel 3 licence is the area in the United Kingdom within which that service is capable of being received at a level satisfying such technical standards as may have been laid down by OFCOM for the purposes of the provisions of an order under this paragraph.

Restriction applying to local digital sound programme services

12

(1) The Secretary of State may by order impose requirements, on persons holding local digital sound programme licences, prohibiting the provision by the same person, in the circumstances described in the order, of more than the number of local digital sound programme services that is determined in the manner set out in the order.

(2) The circumstances by reference to which a person may be prohibited under sub-paragraph (1) from providing a local digital sound programme service, and the factors that may be used for determining the number of such services that he may provide, include, in particular—

(a) whether and to what extent the coverage areas of different local digital sound programme services provided by that person would overlap;

(b) the capacity used by those services on the relevant multiplexes;

(d) whether and to what extent members of the potential audiences for those services would also be members of the potential audiences for local digital sound programme services provided by other persons;

(e) in a case in which members of the potential audiences for the services provided by that person would also be members of the potential audiences for local digital sound programme services provided by other persons—

(i) the number of those other persons;

(ii) the coverage areas of their services;

(iii) the capacity used by their services on the relevant multiplexes;

(iv) the sizes of the potential audiences for their services; and

(v) the times when their services are or will be made available.

(3) For the purposes of this paragraph the coverage area for a service provided under a local digital sound programme licence is the area in the United Kingdom within which the relevant multiplex is capable of being received at a level satisfying such technical standards as may have been laid down by OFCOM for the purposes of the provisions of an order under this paragraph.

(4) In this paragraph “the relevant multiplex”, in relation to a service provided under a local digital sound programme licence, means the local radio multiplex service in which the service provided under that licence is or is to be included.

(5) For the purposes of this paragraph a person who holds a licence to provide local digital sound programme services provides such a service if, and only if—

(a) the service is one provided by him and is included in a local radio multiplex service for which he holds a local radio multiplex licence; or

(b) under a contract between that person and a person who holds a licence to provide a local radio multiplex service, the person holding the licence to provide the radio multiplex service is required to include that local digital sound programme service in that multiplex service.

Powers supplemental to powers under paragraphs 11 and 12

13

(1) An order under paragraph 11 or 12 may make provision for treating—

(a) persons who are connected with a person who holds a licence,

(b) persons who are associates of a person who holds a licence or of a person who is connected with a person who holds a licence, and

(c) persons who (whether alone or together with such persons as may be described in the order) participate in a body which holds a licence or is treated as doing so by virtue of paragraph (a) or (b),

as if each of them were also a holder of the licence for the purposes of a requirement imposed under that paragraph.

(2) An order under paragraph 12 may make provision for treating—

(a) persons who are connected with a person who provides a local digital sound programme service,

(b) persons who are associates of a person who provides such a service or of a person who is connected with a person who provides such a service, and

(c) persons who (whether alone or together with such persons as may be described in the order) participate in a body who provides such a service or is treated as doing so by virtue of paragraph (a) or (b),

as if each of them were also a person providing the service for the purposes of a requirement imposed under that paragraph.

(3) An order under paragraph 11 or 12 may also make provision for treating—

(a) persons who are connected with each other,

(b) persons who are associates of each other, and

as if they and such other persons who are connected with, associates of or participators in any of them as may be described in the order were the same person for the purposes of a requirement imposed under that paragraph.

(4) An order under paragraph 11 may make provision—

(a) as to the circumstances in which a newspaper is to be treated as a national newspaper or a local newspaper for the purposes of a requirement imposed under that paragraph;

(b) as to the person or persons who are to be treated for any such purposes as running a newspaper;

(d) as to what is to constitute the national market share or local market share of any newspaper or of a number of newspapers taken together;

and provision made by virtue of this paragraph may apply, with or without modifications, any of the provisions of paragraph 3 or 4 of this Schedule or section 5(6AA) to (6AD) of the Broadcasting Act 1990 .

(5) Power to make provision with respect to any matter by any order under paragraph 11 or 12 includes power—

(a) to make provision with respect to that matter by reference to the making or giving by OFCOM, in accordance with the order, of any determination, approval or consent; and

(b) to confer such other discretions on OFCOM as the Secretary of State thinks fit.

(6) Sub-paragraph (5) of paragraph 12 applies for the purposes of this paragraph as it applies for the purposes of that paragraph.

Transitional provision for orders under paragraphs 11 and 12

14

(1) This paragraph applies where—

(a) immediately after the coming into force of an order under paragraph 11 or 12, a person (“the person in contravention”) is in contravention, in any respect, of a requirement imposed under that paragraph; and

(b) immediately before the coming into force of the order, that person—

(i) held one or more relevant licences; but

(ii) was not, in that respect, in contravention of a requirement imposed under that paragraph.

(2) This paragraph does not apply in the case of the first order to be made under paragraph 11 or 12 if the person in contravention was, immediately before the coming into force of the order, in contravention, in relation to one or more of the relevant licences, of a requirement imposed under Part 3 or 4 of Schedule 2 to the 1990 Act.

(3) In sub-paragraphs (1) and (2) the reference to a relevant licence is—

(a) in relation to the coming into force of an order under paragraph 11, a local sound broadcasting licence; and

(b) in relation to the coming into force of an order under paragraph 12, a local digital sound programme licence.

(4) The contravention mentioned in sub-paragraph (1)(a), to the extent that it arises by reason of the coming into force of the order, is to be disregarded (in the case of the person in contravention) in relation to any time which falls—

(a) after the coming into force of the order; and

(b) before there is a relevant change of circumstances.

(5) Where the contravention is one arising under paragraph 11 in the case of a person who held one or more local sound broadcasting licences immediately before the coming into force of the order, there is a relevant change of circumstances if—

(a) another person becomes the holder of any of those licences, otherwise than in consequence of a transaction under which the person in contravention ceases to be a holder of the licence; or

(b) the person in contravention becomes the holder of another local sound broadcasting licence.

(6) A change of circumstances is not a relevant change of circumstances by virtue of sub-paragraph (5)(b) unless the licence of which the person in contravention becomes the holder is one the holding of which, with the holding of licences already held by him, would (apart from sub-paragraph (4)) constitute a contravention of a requirement imposed under paragraph 11.

(7) Where the contravention is one arising under paragraph 12 in the case of a person who, under a local digital sound programme licence, was providing one or more local digital sound programme services immediately before the coming into force of the order, there is a relevant change of circumstances if—

(a) another person becomes the holder of that licence, otherwise than in consequence of a transaction under which the person in contravention ceases to be a holder of the licence; or

(b) the person in contravention becomes the provider of another local digital sound programme service provided under that licence.

(8) A change of circumstances is not a relevant change of circumstances by virtue of sub-paragraph (7)(b) unless the service of which the person in contravention becomes the provider is one the provision of which, with the services already provided by him, would (apart from sub-paragraph (4)) constitute a contravention of a requirement imposed under paragraph 12.

(9) For the purposes of this paragraph, in its application in relation to a contravention of a requirement imposed under paragraph 11 or 12—

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