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Communications Bill


Communications Bill
Part 3 — Television and Radio Services
Chapter 2 — Regulatory Structure for Independent Television Services

    199

 

           (b)           a determination of the percentage of qualifying revenue for each

accounting period of the licence holder falling within the renewal

period which he will be required by those conditions to pay to OFCOM.

     (2)    The amount determined under subsection (1)(a) must be equal to the amount

which, in OFCOM’s opinion, would have been the cash bid of the licence

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holder were the licence (instead of being renewed) to be granted for the period

of the renewal on an application made in accordance with Part 1 of Schedule

10.

     (3)    For the purposes of subsection (1)(b)—

           (a)           different percentages may be determined for different accounting

10

periods; and

           (b)           the percentages that may be determined for an accounting period

include a nil percentage.

     (4)    In this section “renewal period”, in relation to a licence, means the period for

which the licence is in force by reason of its renewal.

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     (5)    Part 3 of Schedule 10 applies for construing this section as it applies for

construing that Schedule.

Meaning of initial expiry date

 222   Meaning of “initial expiry date”

     (1)    Subject to any postponement under this section, the date which is the initial

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expiry date for the purposes of this Part is 31st December 2014.

     (2)    The Secretary of State may (on one or more occasions) by order postpone the

initial expiry date.

     (3)    The Secretary of State’s power to postpone the initial expiry date—

           (a)           is to be exercisable before 30th June 2013 only if he has fixed a date after

25

30th June 2013 as the date for digital switchover; and

           (b)           is not to be exercisable on or after 30th June 2013 if he has fixed 30th

June 2013 or an earlier date as the date for digital switchover.

     (4)    Where the Secretary of State makes an order under this section at a time after

he has fixed a date for digital switchover, the date to which the initial expiry

30

date is postponed must be a date not less than eighteen months after the date

for digital switchover.

     (5)    The Secretary of State must exercise his power to postpone the initial expiry

date if it at any time appears to him that that date would otherwise fall within

the period of eighteen months immediately following the date fixed for digital

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switchover.

     (6)    Where an order under this section extends a licensing period for which a

licence has been granted in accordance with section 212 or 217, the 1990 Act

and this Part shall have effect (subject to subsection (7)) as if the licence had

originally been granted for the extended period.

40

     (7)    Where an order under this section extends the period for which a licence is to

continue in force—

 

 

Communications Bill
Part 3 — Television and Radio Services
Chapter 2 — Regulatory Structure for Independent Television Services

    200

 

           (a)           that order shall not affect the earliest time at which an application for

the renewal of that licence may be made in accordance with section

214(2)(a) or 220(2)(a);

           (b)           as soon as reasonably practicable after making the order, OFCOM must

make such modification of any determination made by them in the case

5

of that licence for the purposes of section 214(2)(b) or 220(2)(b) as they

consider appropriate in consequence of the extension; and

           (c)           neither section 214(3)(a) nor section 220(3)(a) applies to the making of

that modification.

     (8)    In this section a reference to the date for digital switchover is a reference to the

10

date fixed by the Secretary of State for the purposes of this section as the date

which appears to him, in consequence of directions given by him for the

purposes of the conditions of the licences for the relevant public broadcasting

services, to be the date after which none of those services will be broadcast to

any significant extent in analogue form.

15

     (9)    In this section “the relevant public broadcasting service” means any of the

following—

           (a)           the services comprised in Channel 3; and

           (b)           Channel 5.

Reviews relating to licensing of Channels 3 & 5 and teletext

20

 223   Application for review of financial terms of replacement licences

     (1)    The holder of a replacement licence granted under section 213 or 219 may

apply to OFCOM, at any time in the first or any subsequent review period, for

a review of the financial terms on which that licence is held.

     (2)    For the purposes of this section the first review period is the period which—

25

           (a)           begins four years before the first notional expiry date; and

           (b)           ends with the day before the day that OFCOM have determined to be

the one by which they would need to publish a tender notice if they

were proposing to grant a fresh licence to take effect from the first

notional expiry date.

30

     (3)           For the purposes of this section a subsequent review period in the case of a

replacement licence is so much (if any) of the following period as falls before

the end of the initial expiry date, namely, the period which—

           (a)           begins four years before a subsequent notional expiry date; and

           (b)           ends with the day before the day that OFCOM have determined to be

35

the one by which they would need to publish a tender notice if they

were proposing to grant a fresh licence to take effect from that notional

expiry date.

     (4)    A determination for the purposes of subsection (2)(b) or (3)(b) in respect of a

replacement licence—

40

           (a)           must be made at least one year before the day determined; and

           (b)           must be notified by OFCOM to the person who, at the time of the

determination, holds the licence in question.

     (5)    No application under this section for a review of the financial terms on which

a replacement licence is held is to be made—

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Communications Bill
Part 3 — Television and Radio Services
Chapter 2 — Regulatory Structure for Independent Television Services

    201

 

           (a)           at any time when an application under section 224 for a review of those

terms is pending; or

           (b)           at any time in the period of twelve months following the day on which

a determination by OFCOM on such an application is notified to the

licence holder.

5

     (6)    For the purposes of this section an application for a review under section 224

is pending from the time when the application is made until the end of the day

on which OFCOM’s determination on the review is notified to the licence

holder.

     (7)    In this section—

10

                    “the first notional expiry date”, in relation to a replacement licence, means

the date with which (apart from this Act) the existing licence would

have expired if not renewed;

                    “subsequent notional expiry date”, in relation to a replacement licence,

means—

15

                  (a)                 in a case in which an application by the licence holder for a

review under this section was made during the review period

beginning four years before the last notional expiry date, the

tenth anniversary of the date on which OFCOM’s

determination on that review was notified to the licence holder;

20

and

                  (b)                 in any other case, the tenth anniversary of the last notional

expiry date;

                    “tender notice” means a notice under section 15(1) of the 1990 Act or (as

the case may be) paragraph 1 of Schedule 10.

25

     (8)    In subsection (7) “existing licence” has the same meaning as in section 213 or

(as the case may be) 219.

 224   Application for review of financial terms in consequence of new obligations

     (1)    This section applies where an order is made under section 407 that brings

section 270, 271 or 272 (or any two or more of them) into force for the purpose

30

of including conditions in the regulatory regime for—

           (a)           a Channel 3 service;

           (b)           Channel 5; or

           (c)           the public teletext service.

     (2)    The holder of a licence in which conditions mentioned in section 270, 271 or 272

35

will fall to be included when the order comes into force may apply to OFCOM,

at any time in the review period, for a review of the financial terms on which

the licence is held.

     (3)    For the purposes of this section the review period in the case of an order under

section 407 is the period which—

40

           (a)           begins with the day on which the order is made; and

           (b)           ends with the time at which, by virtue of the order, one or more of

sections 270, 271 and 272 come into force in the case of the licence in

question.

     (4)    If in the case of the same order there is more than one time falling within

45

subsection (3)(b), the review period ends with the later or latest of them.

 

 

Communications Bill
Part 3 — Television and Radio Services
Chapter 2 — Regulatory Structure for Independent Television Services

    202

 

 225   Reviews under ss. 223 and 224

     (1)    This section applies where an application is made under section 223 or 224 for

a review of the financial terms on which a licence is held.

     (2)    As soon as reasonably practicable after receiving the application, OFCOM

must—

5

           (a)           determine the amount to be paid to them under the conditions of the

licence for the first calendar year falling wholly or partly within the

period under review to begin after the application date; and

           (b)           determine the percentage to be used for computing the payments to be

made to them under those conditions in respect of each accounting

10

period falling within the period under review to begin after that date.

     (3)    The amount determined under subsection (2)(a) must be equal to the amount

which, in OFCOM’s opinion, would have been the cash bid of the licence

holder were the licence being granted afresh on an application made in

accordance with—

15

           (a)           section 15 of the 1990 Act (licences for Channel 3 service or Channel 5);

or

           (b)           paragraph 3 of Schedule 10 to this Act.

     (4)    The determination required by subsection (2)(b) is a determination of the

percentage of qualifying revenue for each accounting period that is to be paid

20

to OFCOM.

     (5)    For the purposes of subsection (2)(b)—

           (a)           different percentages may be determined for different accounting

periods; and

           (b)           the percentages that may be determined for an accounting period

25

include a nil percentage.

     (6)    In making their determinations on an application under section 224 OFCOM

are to have regard, in particular, to any additional costs that are likely to be

incurred by the licence holder in consequence of the commencement of so

much of section 270, 271 or 272 (or any two or more of them) as is brought into

30

force by the commencement order in question.

     (7)    References in this section to qualifying revenue for an accounting period are to

be construed—

           (a)           in the case of the holder of a licence to provide a Channel 3 service or

Channel 5, in accordance with section 19 of and Part 1 of Schedule 7 to

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the 1990 Act; and

           (b)           in the case of the holder of the licence to provide the public teletext

service, in accordance with Part 3 of Schedule 10 to this Act.

     (8)    In this section—

                    “the application date”, in relation to a review, means the date of the

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making under section 223 or 224 of the application for the review; and

                    “the period under review”, in relation to a review of the financial terms of

a licence, means so much of the period for which the licence will (if not

renewed) continue in force after the application date.

 

 

 
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