(1) Any Channel 3 licence or licence to provide Channel 4 may include conditions requiring the licence holder to include in the licensed service such announcements concerning relevant programme schedules as OFCOM may determine.
(2) In this section “relevant programme schedules” means—
(a) in relation to a Channel 3 licence, programme schedules for programmes to be broadcast on Channel 4 and, where any part of the area for which the licensed service is to be provided is in Wales, programme schedules for programmes to be broadcast on S4C Digital; and
(b) in relation to the licence to provide Channel 4, programme schedules for programmes to be included in any Channel 3 service.
38 Promotion of equal opportunities in relation to employment by licence holder.
(1) Any Channel 3 licence or licence to provide Channel 4 or Channel 5 shall include conditions requiring the licence holder—
(a) to make arrangements for promoting, in relation to employment by him, equality of opportunity between men and women and between persons of different racial groups; and
(b) to review those arrangements from time to time.
(2) In subsection (1) “racial group” has the same meaning as in the Race Relations Act 1976.
39 Networking arrangements between holders of regional Channel 3 licences.
(1) This section has effect with respect to the making of arrangements which—
(a) apply to all the holders of regional Channel 3 licences, and
(b) provide for programmes made, commissioned or acquired by or on behalf of one or more of the holders of such licences to be available for broadcasting in all regional Channel 3 services,
being arrangements made for the purpose of enabling regional Channel 3 services (taken as a whole) to be a nationwide system of such services which is able to compete effectively with other television programme services provided in the United Kingdom; and any such arrangements are referred to in this section as “networking arrangements”.
(2) Any application for a regional Channel 3 licence shall, in addition to being accompanied by any such proposals as are mentioned in section 15(3)(b) to (e), be accompanied by the applicant’s proposals for participating in networking arrangements made under this section; and—
(a) where a person has duly made such an application, the Commission—
(i) shall, as soon as reasonably practicable after the closing date for applications for the licence, send details of his proposals for participating in such arrangements to the the Office of Fair Trading, and
(ii) (without prejudice to the operation of section 16(1)) shall not proceed to consider whether to award him the licence as mentioned in that provision unless it appears to the Commission that any such proposals are satisfactory; and
(b) section 33 shall apply to any such proposals as it applies to the proposals submitted by the applicant under section 15(3)(c) to (e).
(3) The Commission may publish, in such manner as they consider appropriate, general guidance to applicants for a regional Channel 3 licence as to the kinds of proposals which they would consider satisfactory for the purposes of subsection (2)(a); but before doing so the Commission—
(a) shall consult the Office of Fair Trading, and
(b) if it requests them to make any change in the guidance, shall incorporate the change in the guidance.
(4) Each regional Channel 3 licence shall include conditions requiring the licence holder to do all that he can to secure—
(a) (in the case of a licence granted before the relevant date) that, by that date, networking arrangements have been made which—
(i) have been entered into by all the holders of regional Channel 3 licences, and
(ii) have been approved by the Commission; and
(b) (in any case) that, so long as he provides his licensed service, there are in force networking arrangements which have been so entered into and approved (unless there are for the time being in force any arrangements made by the Commission under subsection (5)).
(5) If—
(a) no such arrangements as are mentioned in subsection (4)(a) are made by the relevant date, or
(b) any such arrangements are so made but cease to be in force at any time before 1st January 1995,
the Commission may themselves draw up such networking arrangements as they consider appropriate; and, if they do so—
(i) they shall notify all the holders of regional Channel 3 licences of those arrangements, and
(ii) those arrangements shall (subject to subsection (6)) come into force on a date determined by the Commission;
and each regional Channel 3 licence shall include conditions requiring the licence holder to give effect to any arrangements made by the Commission under this subsection as for the time being in force.
(6) No arrangements made by the Commission under subsection (5) shall come into force at any time after 31st December 1994.
(7) Where—
(a) any such arrangements have come into force in accordance with subsection (6), but
(b) any networking arrangements are subsequently—
(i) entered into by all the holders of regional Channel 3 licences, and
(ii) approved by the Commission,
the arrangements referred to in paragraph (a) shall cease to have effect on the coming into force of the arrangements referred to in paragraph (b).
(8) Where any arrangements have been approved by the Commission under subsection (4) or (7)(b), no modification of those arrangements shall be made by the holders of regional Channel 3 licences unless it too has been so approved.
(9) Where any arrangements have been made by the Commission under subsection (5), they may (whether before or after the date specified in subsection (6)) make such modification of those arrangements as they consider appropriate; and, if they do so—
(a) they shall notify all the holders of regional Channel 3 licences of the modification, and
(b) the modification shall come into force on a date determined by the Commission.
(9A) The matters to which the Commission shall have regard in deciding whether to approve any arrangements or modification under subsection (4) or (8) include the likely effect of the arrangements in question, or (as the case may be) those arrangements as proposed to be modified, on the ability of the holders of regional Channel 3 licences to maintain the quality and range—
(a) of the regional programmes (as defined by section 21A(9)) included in each regional Channel 3 service, and
(b) of the other programmes included in each service which contribute to the regional character of the service.
(10) Without prejudice to the generality of their power to refuse to approve any arrangements or modification under subsection (4) or (8), the Commission shall refuse to do so if—
(a) they are not satisfied that the arrangements in question, or (as the case may be) those arrangements as proposed to be modified, would be appropriate for the purpose mentioned in subsection (1), or
(b) it appears to them that the arrangements in question, or (as the case may be) those arrangements as proposed to be modified, would be likely to prejudice the ability of the holder of any regional Channel 3 licence to comply with—
(i) any condition imposed in pursuance of section 33(1), for the purpose of securing the implementation of proposals relating to the matters specified in section 16(2)(c), or
(ii) any condition imposed in pursuance of subsection (3) of section 21A in relation to the matters specified in paragraph (a) of that subsection.
(11) Where the Commission have—
(a) approved any arrangements or modification under subsection (4), (7)(b) or (8), or
(b) given with respect to any arrangements or modification the notification required by subsection (5)(i) or (9)(a),
they shall, as soon as reasonably practicable after giving their approval or (as the case may be) that notification—
(i) publish details of the arrangements or modification in such manner as they consider appropriate, and
(ii) comply with the appropriate requirement specified in subsection (12)(a) or (b).
(12) The appropriate requirement referred to in paragraph (ii) of subsection (11) is—
(a) in the case of any such arrangements as are referred to in paragraph (a) or (b) of that subsection, to refer those arrangements to the Office of Fair Trading, and
(b) in the case of any such modification as is so referred to, to inform it of that modification;
and Schedule 4 to this Act shall have effect with respect to any reference made under paragraph (a) above and matters arising out of any such reference, including the subsequent modification of the arrangements to which it relates.
(13) In this section “the relevant date” means the date which the Commission determine to be that by which any such arrangements as are mentioned in subsection (4) would need to have been made by the holders of regional Channel 3 licences in order for the arrangements to be fully in operation at the time when those persons begin to provide their licensed services.
40 Power to direct licensee to broadcast correction or a statement of findings or not to repeat programme.
(1) If OFCOM are satisfied—
(a) that the holder of a Channel 3 or Channel 5 licence has failed to comply with any condition of the licence, and
(b) that that failure can be appropriately remedied by the inclusion in the licensed service of a correction or a statement of findings (or both) under this subsection,
they may (subject to subsection (2)) direct the licence holder to include in the licensed service a correction or a statement of findings (or both) in such form, and at such time or times, as they may determine.
(2) OFCOM shall not give any person a direction under subsection (1) unless they have given him a reasonable opportunity of making representations to them about the matters complained of.
(3) Where the holder of a licence includes a correction or a statement of findings in the licensed service in pursuance of a direction under subsection (1), he may announce that he is doing so in pursuance of such a direction.
(4) If OFCOM are satisfied that the inclusion by the holder of a Channel 3 or Channel 5 licence of any programme in the licensed service involved a failure by him to comply with any condition of the licence, they may direct him not to include that programme in that service on any future occasion.
(5) This section shall apply in relation to Channel 4 as if any reference to a Channel 3 licence were a reference to the licence to provide Channel 4.
(6) For the purposes of this section a statement of findings, in relation to a case in which OFCOM are satisfied that the holder of a licence has contravened the conditions of his licence, is a statement of OFCOM’s findings in relation to that contravention.
41 Power to impose financial penalty or shorten licence period.
(1) If OFCOM are satisfied that the holder of a Channel 3 or Channel 5 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 , Part 5 of the Broadcasting Act 1996 or Part 3 of the Communications Act 2003, 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.
(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 18A applies for determining or estimating qualifying revenue for the purposes of subsection (1A) or (1B), with any necessary modifications in relation to the holder of the Channel 5 licence.
(3) OFCOM shall not serve on any person such a notice as is mentioned in subsection (1)(a) or (b) unless they have given him a reasonable opportunity of making representations to them about the matters complained of.
(4) 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.
(5) It is hereby declared that any exercise by OFCOM of their powers under subsection (1) of this section in respect of any failure to comply with any condition of a licence shall not preclude any exercise by them of their powers under section 40 in respect of that failure.
(6) This section shall apply in relation to Channel 4 as if—
(a) any reference to a Channel 3 licence were a reference to the licence to provide Channel 4; and
(b) subsection (1)(b) were omitted.
(1) If OFCOM are satisfied—
(a) that the holder of a Channel 3 or Channel 5 licence is failing to comply with any condition of the licence or with any direction given by them under or by virtue of any provision of this Part , Part 5 of the Broadcasting Act 1996 or Part 3 of the Communications Act 2003, and
(b) that that failure is such that, if not remedied, it would justify the revocation of the licence,
they shall (subject to subsection (8)) serve on the holder of the licence a notice under subsection (2).
(2) A notice under this subsection is a notice—
(a) stating that OFCOM are satisfied as mentioned in subsection (1);
(b) specifying the respects in which, in their opinion, the licence holder is failing to comply with any such condition or direction as is there mentioned; and
(c) stating that, unless the licence holder takes, within such period as is specified in the notice, such steps to remedy the failure as are so specified, OFCOM will revoke his licence under subsection (3).
(3) If at the end of the period specified in a notice under subsection (2) OFCOM are satisfied—
(a) that the person on whom the notice was served has failed to take the steps specified in it, and
(b) that it is necessary in the public interest to revoke his licence,
they shall (subject to subsection (8)) serve on that person a notice revoking his licence.
(4) If OFCOM are satisfied in the case of any Channel 3 or Channel 5 licence—
(a) that the holder of the licence has ceased to provide the licensed service before the end of the period for which the licence is to continue in force, and
(b) that it is appropriate for them to do so,
they shall (subject to subsection (8)) serve on him a notice revoking his licence.
(5) If OFCOM are satisfied—
(a) that the holder of a Channel 3 or Channel 5 licence provided them, in connection with his application for the licence, with information which was false in a material particular, or
(b) that, in connection with his application for the licence, the holder of such a licence withheld any material information with the intention of causing them to be misled,
they may (subject to subsection (8)) serve on him a notice revoking his licence.
(6) Subject to subsection (7), any notice served under subsection (3), (4) or (5) shall take effect as from the time when it is served on the licence holder.
(7) If it appears to OFCOM to be appropriate to do so for the purpose of preserving continuity in the provision of the service in question, they may provide in any such notice for it to take effect as from a date specified in it.
(8) OFCOM shall not serve any notice on a person under this section unless they have given him a reasonable opportunity of making representations to them about the matters complained of.
In this Part “restricted service” means a service (or a dissociable section of a service) which consists in the broadcasting of television programmes for a particular establishment or other defined location, or a particular event, in the United Kingdom.
(1) An application for a licence to provide a restricted service shall be made in such manner as OFCOM may determine, and shall be accompanied by such fee (if any) as OFCOM may determine.
(2) Subject to subsections (3) to (3C), sections 40 to 42 shall apply in relation to such a licence as they apply in relation to a licence to provide a Channel 3 service.
(3) In its application to a licence to provide a restricted service, section 41 shall have effect with the omission of subsections (1A) to (1C); and the maximum amount which the holder of such a licence may be required to pay by way of a financial penalty imposed in pursuance of subsection (1)(a) of that section is the maximum penalty given by subsection (3A).
(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.
(1) In this Part “additional service” means any service which consists in the sending of electronic signals for transmission by wireless telegraphy by means of the use of the spare capacity within the signals carrying any television broadcasting service provided— on a relevant frequency.
(2) For the purposes of this Part the spare capacity within the signals carrying any such broadcasting service shall be taken to be—any part of the signals which—
(a) is not required for the purposes of the television broadcasting service for the purposes of which the frequency has been made available; and
(b) is determined by OFCOM to be available for the provision of additional services;
and references in this Part to spare capacity shall be construed accordingly.
(2A) For the purposes of this Part, if they consider it appropriate to do so, OFCOM may, while an additional services licence is in force, from time to time modify the determination made under subsection (2)(b) for the purposes of that licence in any manner that does not reduce the amount of spare capacity made available for the licensed services; and when so modified any such licence shall have effect accordingly.
(3) OFCOM shall, when determining under subsection (2)(b) the extent and nature of the spare capacity available for the provision of additional services in the case of any frequency, have regard—
(a) to the obligations contained in any code under section 303 of the Communications Act 2003 by virtue of subsection (5) of that section; and
(aa) to any need of the person providing the television broadcasting service in question to be able to use part of the signals carrying it for providing services (in addition to those provided for satisfying those obligations) which—
(i) are ancillary to programmes included in the service and directly related to their contents; or
(ii) relate to the promotion or listing of such programmes.
(4) A person holding a licence to provide a Channel 3 service or Channel 4 or 5 shall be taken for the purposes of this Part to be authorised by his licence—
(a) to provide services for the satisfaction in his case of obligations mentioned in subsection (3)(a); and
(b) to provide in relation to his television broadcasting service any such services as are mentioned in subsection (3)(aa).
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) In this section—
“electronic signals” means signals within the meaning of section 32 of the Communications Act 2003;
“relevant frequency” means a frequency made available by OFCOM for the purposes of a television broadcasting service.
(1) Subject to subsection (2), OFCOM shall do all that they can to secure that, in the case of each relevant frequency, all of the spare capacity available for the provision of additional services on that frequency is used for the provision of such services under additional services licences granted by OFCOM in accordance with this section.
(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) An additional services licence may relate to the use of spare capacity within more than one frequency; and two or more additional services licences may relate to the use of spare capacity within the same frequency where it is to be used at different times, or in different areas, in the case of each of those licences.
(5) An additional services licence may include provisions enabling the licence holder, subject to and in accordance with such conditions as OFCOM may impose, to authorise any person to whom this subsection applies to provide any additional service on the spare capacity allocated by the licence.
(6) Subsection (5) applies to any person who is not a disqualified person in relation to an additional services licence by virtue of Part II of Schedule 2 to this Act.
(7) Any conditions included in an additional services licence shall apply in relation to the provision of additional services by a person authorised as mentioned in subsection (5) as they apply in relation to the provision of such services by the licence holder; and any failure by such a person to comply with any such conditions shall be treated for the purposes of this Part as a failure on the part of the licence holder to comply with those conditions.
(8) Every licence under this Part to provide a television broadcasting service shall include such conditions as appear to OFCOM to be appropriate for securing that the licence holder grants—
(a) to any person who holds a licence to provide additional services on the frequency on which that broadcasting service is provided, and
(b) to any person who is authorised by any such person as mentioned in subsection (5) to provide additional services on that frequency,
access to facilities reasonably required by that person for the purposes of, or in connection with, the provision of any such additional services.
(9) Any person who grants to any other person access to facilities in accordance with conditions imposed under subsection (8) may require that other person to pay a reasonable charge in respect thereof; and any dispute as to the amount of any such charge shall be determined by OFCOM .
(10) In this Part “additional services licence” means a licence to provide additional services and “relevant frequency” has the same meaning as in section 48.
(1) Where OFCOM propose to grant a licence to provide additional services they shall publish, in such manner as they consider appropriate, a notice—
(a) stating that they propose to grant such a licence;
(b) specifying—
(i) the television broadcasting service or services on whose frequency or frequencies the services are to be provided, and
(ii) ... the extent and nature of the spare capacity which is to be allocated by the licence;
(c) inviting applications for the licence and specifying the closing date for such applications; and
(d) specifying—
(i) the fee payable on any application made in pursuance of the notice, and
(ii) the percentage of qualifying revenue for each accounting period that would be payable by an applicant in pursuance of section 52(1)(c) if he were granted the licence.
(2) OFCOM may, if they think fit, specify under subsection (1)(d)(ii)—
(a) different percentages in relation to different accounting periods falling within the period for which the licence would be in force;
(b) a nil percentage in relation to any accounting period so falling.
(3) Any application made in pursuance of a notice under this section must be in writing and accompanied by—
(a) the fee specified in the notice under subsection (1)(d)(i);
(b) a technical plan indicating—
(i) the nature of any additional services which the applicant proposes to provide, and
(ii) so far as known to the applicant, the nature of any additional services which any other person proposes to provide in accordance with section 49(5);
(c) the applicant’s cash bid in respect of the licence; and
(d) 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.
(4) At any time after receiving such an application and before determining it OFCOM may require the applicant to furnish additional information under subsection (3)(b) or (d).
(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) OFCOM shall, as soon as reasonably practicable after the date specified in a notice under this section as the closing date for applications, publish in such manner as they consider appropriate—
(a) the name of every person who has made an application to them in pursuance of the notice;
(b) particulars of the technical plan submitted by him under subsection (3)(b); and
(c) such other information connected with his application as OFCOM consider appropriate.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51 Procedure to be followed by Commission in connection with consideration of applications for, and awarding of, licences.
(1) Where a person has made an application for an additional services licence in accordance with section 50, OFCOM shall not proceed to consider whether to award him the licence on the basis of his cash bid in accordance with subsections (3) and (4) below unless it appears to them—
(a) that the technical plan submitted under section 50(3)(b), in so far as it involves the use of an electronic communications network (within the meaning of the Communications Act 2003), contains proposals that are acceptable to them; and
(b) that the services proposed to be provided under the licence would be capable of being maintained throughout the period for which the licence would be in force;
and any reference to an applicant in section 17 (as applied by subsection (3) below) is accordingly a reference to an applicant in whose case it appears to OFCOM that the requirements of paragraphs (a) and (b) above are satisfied.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Subject to subsection (4), section s17 and 17A shall apply in relation to an additional services licence as they apply in relation to a Channel 3 licence.
(4) In the application of section 17 in relation to an additional services licence—
(a) the provisions of subsection (4) down to the end of paragraph (b) shall be omitted;
(b) in subsection (7)(a), the reference to section 19(1) shall be construed as a reference to section 52(1); and
(c) subsection (12) shall have effect with the substitution of the following paragraph for paragraph (b)—
(b) the name of every other applicant in whose case it appeared to OFCOM that the requirement specified in section 51(1)(a) was satisfied;
.
(5) If at any time after an additional services licence has been granted to any person but before the licence has come into force—
(a) that person indicates to OFCOM that none of the services in question will be provided once the licence has come into force, or
(b) OFCOM for any other reason have reasonable grounds for believing that none of those services will be so provided,
then, subject to subsection (6)—
(i) OFCOM shall serve on him a notice revoking the licence as from the time the notice is served on him, and
(ii) section 17 (as applied by subsection (3) above) shall, subject to section 17(14), have effect as if he had not made an application for the licence.
(6) Subsection (5) shall not apply in the case of any person by virtue of paragraph (b) of that subsection unless OFCOM have served on him a notice stating their grounds for believing that none of the services in question will be provided 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.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
52 Additional payments to be made in respect of additional services licences.
(1) An additional services 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 4(1)(b))—
(a) in respect of the first complete calendar year falling within the period for which the licence is in force, the amount specified in his cash bid;
(b) in respect of each subsequent year falling wholly or partly within that period, the amount so specified as increased by the appropriate percentage; and
(c) in respect of each accounting period of his falling within the period referred to in paragraph (a), an amount representing such percentage of the qualifying revenue for that accounting period as was specified in relation to the licence under section 50(1)(d)(ii).
(2) For the purposes of subsection (1)(c) the qualifying revenue for any accounting period of the licence holder shall consist of all amounts which are received or to be received by him or by any connected person and are referable to the right under his licence to use, or to authorise any other person to use, in that period the spare capacity allocated by the licence.
(3) An additional services 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)(c); and
(b) requiring the licence holder to pay the estimated amount by monthly instalments throughout that period.
(4) 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.
(5) Where—
(a) the first complete accounting period of the licence holder falling within the period referred to in subsection (1)(a) (“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)(c) 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.
53 Duration of licences, and renewal of licences for provision of services on assigned frequencies.
(1) A licence to provide additional services on a frequency which is a relevant frequency for the purposes of section 48 or (in the case of a licence granted before the television transfer date) was assigned under section 65—
(a) shall, subject to the provisions of this Part, continue in force for a period of ten years, and
(b) may (subject to the following provisions of this section) be renewed on one or more occasions for a period of ten years beginning with the date of renewal.
(2) An application for the renewal of a licence under subsection (1) 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.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Where an application is made for the renewal of a licence under subsection (1) ..., OFCOM may postpone the consideration of it by them for as long as they think appropriate having regard to subsection (9).
(5) Where an application for the renewal of an additional services licence has been duly made to OFCOM, they may only (subject to subsection (6)) refuse the application if—
(a) they are not satisfied that any additional service specified in the technical plan submitted under section 50(3)(b) would, if the licence were renewed, be provided as proposed in that plan, or
(b) they propose to grant a fresh additional services licence for the provision of any additional service which would differ in any material respect from any such service authorised to be provided under the applicant’s licence, or
(c) they propose to determine that all or part of the spare capacity allocated by the licence is to cease to be available for the provision of additional services in order that it may be used by any relevant person for the purpose of enhancing the technical quality of his television broadcasting service;
and in paragraph (c) “relevant person” means the person providing a television broadcasting service on whose frequency the licensed service has been provided.
(6) Section 17(5) to (7) shall apply in relation to an applicant for the renewal of an additional services licence as those provisions apply in relation to such an applicant as is mentioned in section 17(5), but as if—
(a) any reference to the awarding of a Channel 3 licence to the applicant were a reference to the renewal of the applicant’s licence under this section; and
(b) in section 17(7), the reference to section 19(1) were a reference to section 52(1).
(7) On the grant of any such application OFCOM —
(a) shall determine an amount which is to be payable to OFCOM by the licence holder in respect of the first complete calendar year falling within the period for which the licence is to be renewed; and
(b) may specify a different percentage from that specified under section 50(1)(d)(ii) as the percentage of qualifying revenue for each accounting period of his that will be payable by the applicant in pursuance of section 52(1)(c) during the period for which the licence is to be renewed;
and OFCOM may specify under paragraph (b) either of the things mentioned in section 50(2).
(8) The amount determined by OFCOM under subsection (7)(a) in connection with the renewal of a licence shall be such amount as would, in their opinion, be the cash bid of the licence holder were the licence (instead of being renewed) to be granted for the period of the renewal on an application made in accordance with section 50(3).
(8A) For the purposes of subsection (7)(b)—
(a) different percentages may be specified for different accounting periods; and
(b) the percentages that may be specified for an accounting period include a nil percentage.
(9) Where OFCOM have granted a person’s application under this section they shall formally renew his licence not later than the relevant date or, if that is not reasonably practicable, as soon after that date as is reasonably practicable; and they shall not so renew his licence unless they have notified him of—
(a) the amount determined by them under subsection (7)(a), and
(b) any percentage specified by them under subsection (7)(b),
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.
(10) Where an additional services licence is renewed under this section—
(a) any conditions included in it in pursuance of section 52 shall have effect during the period for which the licence has been renewed—
(i) as if the amount determined by OFCOM under subsection (7)(a) above were an amount specified in a cash bid submitted by the licence holder, and
(ii) subject to any determination made under subsection (7)(b) above; and
(b) (subject to paragraph (a)) that section shall have effect in relation to the period for which the licence has been renewed as it has effect in relation to the period for which an additional services licence is originally in force.
(11) In this section “the relevant date”, in relation to an additional services licence, means the date which OFCOM determine to be that by which they would need to publish a notice under section 50 if they were to grant, as from the date on which that licence would expire if not renewed, a fresh licence to provide the additional services formerly provided under that licence.
(12) A determination for the purposes of subsection (11)—
(a) must be made at least one year before the date determined; and
(b) must be notified by OFCOM to the person who holds the licence in question.
(13) In this section “the television transfer date” has the same meaning as in the Communications Act 2003.
54 Additional services not to interfere with other transmissions.
(1) An additional services licence may include such conditions as OFCOM consider appropriate for securing that the provision of any additional service under the licence does not cause any interference with—
(a) the television broadcasting service or services on whose frequency or frequencies it is provided, or
(b) any other wireless telegraphy transmissions.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) If OFCOM are satisfied that the holder of an 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 subsection (3)) serve on him a notice requiring him to pay, within a specified period, a specified financial penalty to OFCOM.
(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.
(3) OFCOM shall not serve on any person a notice under subsection (1) unless they have given him a reasonable opportunity of making representations to them about the matters complained of.
(4) Section 42 shall apply in relation to an additional services licence as it applies in relation to a licence to provide a Channel 3 service, but with the omission of subsection (7) and, in the case of a licence renewed under section 53 as if the reference in section 42(4) to the end of the period for which the licence is to continue in force were a reference to the end of the period for which it has been renewed.
56 Welsh Authority to continue in existence as Sianel Pedwar Cymru.
(1) The authority which at the commencement of this section is called the Welsh Fourth Channel Authority shall continue in existence as a body corporate but—
(a) shall be known as Sianel Pedwar Cymru (or S4C); and
(b) shall be constituted in accordance with ... this Act;
...
(2) The members of the S4C Board (see section 56A and Schedule 6A) are to be the members of S4C, but membership of S4C does not enable any person to act otherwise than through the S4C Board.
(3) Schedule 6 to this Act shall have effect with respect to S4C.
(1) A Board of S4C is established.
(2) That Board—
(a) is to be known as the S4C Board or (in Welsh) Bwrdd S4C, and
(b) is to be constituted in accordance with this Act.
(3) Except where otherwise provided by or under any enactment, the duties and powers of S4C are to be discharged and exercised by the S4C Board on behalf of S4C.
(4) Schedule 6A makes further provision about the S4C Board.
(1) The BBC must provide to S4C (free of charge) sufficient television programmes in Welsh to occupy not less than ten hours’ transmission time per week, in a way that meets the reasonable requirements of S4C.
(1A) The duty in subsection (1) does not apply during any period for which the BBC and S4C agree in writing to put in place alternative arrangements that contribute to S4C fulfilling its public service remit.
(1B) If the BBC and S4C make an agreement under subsection (1A) the BBC must, as soon as reasonably practicable, publish the terms of the agreement.
(1C) The BBC must exclude from publication any information which it or S4C considers—
(a) constitutes a trade secret, or
(b) would be likely, if published, to prejudice the commercial interests of any person,
unless the BBC and S4C consider that there is an overriding public interest in publishing the information.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) S4C shall publish, in such manner as they consider appropriate, advance notice of the programme schedules for the programmes to be broadcast on S4C Digital.
(6) In this section “programme” does not include an advertisement.
(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) S4C shall—
(a) from time to time consult the Secretary of State as to the classes and descriptions of advertisements which must not be broadcast on S4C Digital and the methods of advertising or sponsorship which must not be employed in, or in connection with, the provision of S4C Digital;
(aa) from time to time consult the Secretary of State as to the forms and methods of product placement that should not be employed in the provision of S4C Digital (including the descriptions of products, services or trade marks for which product placement should not be employed); and
(b) carry out any directions which he may give to them in respect of such matters.
(5) S4C shall not act as an advertising agent.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) The Secretary of State shall secure that in 2012 and each subsequent year S4C are paid an amount which he considers sufficient to cover the cost to S4C during that year of fulfilling S4C’s public service remit.
(2) The Secretary of State may discharge the duty in subsection (1) by making payments himself or entering into an agreement with another person for that person to do so (or both).
(3) If under this section S4C are paid an amount for any year which exceeds the cost referred to in subsection (1), S4C may pay the difference from the public service fund referred to in section 61A to the person (or pro rata to the persons) from whom payments were received.
(4) Any sums required by the Secretary of State under this section shall be paid out of money provided by Parliament.
(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) All amounts received by S4C under section 61 ... shall be kept by S4C in a separate fund (in this section referred to as “the public service fund”) which may be applied only for the purposes of fulfilling S4C’s public service remit.
(3) No S4C company shall receive any direct or indirect subsidy from the public service fund.
(4) S4C shall secure that no audiovisual content which has been wholly or partly financed out of the public service fund is included in a relevant audiovisual service provided by an S4C company before it is first included in a relevant audiovisual service provided by S4C in fulfilling its public service remit.
(4A) In subsection (4), “audiovisual content” and “relevant audiovisual service” have the same meaning as in Part 3 of the Communications Act 2003 (see section 362 of that Act).
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) If it appears to him to be necessary or expedient to do so in connection with his functions as such, the Secretary of State or any other Minister of the Crown may at any time by notice require S4C to broadcast, at such times as may be specified in the notice, any announcement specified in the notice, with or without visual images of any picture, scene or object mentioned in the announcement; and it shall be the duty of S4C to comply with the notice.
(2) Where S4C broadcast any announcement in pursuance of a notice under subsection (1), they may announce that they are doing so in pursuance of such a notice.
(3) The Secretary of State may at any time by notice require S4C to refrain from broadcasting any matter or classes of matter specified in the notice; and it shall be the duty of S4C to comply with the notice.
(4) Where the Secretary of State has given S4C a notice under subsection (3), S4C may broadcast an announcement of the giving of the notice or, when it has been revoked or has expired, of its revocation or expiration.
(5) The powers conferred by this section are in addition to any power specifically conferred on the Secretary of State by any other provision of this Act.
(1) S4C shall make arrangements for ascertaining—
(a) the state of public opinion concerning programmes broadcast on S4C Digital;
(b) any effects of such programmes on the attitudes or behaviour of persons who watch them; and
(c) the types of programme that members of the public would like to be broadcast on S4C Digital.
(2) Those arrangements shall—
(a) secure that, so far as is reasonably practicable, any research undertaken in pursuance of the arrangements is undertaken by persons who are neither members nor employees of S4C; and
(b) include provision for full consideration by S4C of the results of any such research.
66 Requirements relating to transmission and distribution of services.
(1) During such period as the Secretary of State may by order specify, all Channel 3 services shall be broadcast so as to be available for reception by members of the public by a single person under arrangements made with him by the persons licensed to provide those services; and every Channel 3 licence shall include such conditions as appear to OFCOM to be appropriate—
(a) for securing that result and
(b) for securing that the costs incurred in respect of the broadcasting of those services (taken as a whole) during that period in accordance with those arrangements are shared by those persons in such manner as may be approved by the Secretary of State.
(2) Any Channel 3 licence shall include such conditions as appear to OFCOM to be appropriate for securing that the costs incurred in respect of the distribution of Channel 3 services (taken as a whole) during such period as the Secretary of State may by order specify are shared by the persons licensed to provide those services in such manner as may be approved by the Secretary of State. In this subsection “distribution”, in relation to Channel 3 services, means the conveyance of those services (by whatever means and whether directly or indirectly) to the broadcasting stations from which they are broadcast so as to be available for reception by members of the public.
(2A) In subsections (1) and (2) “available for reception by members of the public” shall be construed in accordance with section 361 of the Communications Act 2003
(3) The Secretary of State may, at any time during the period referred to in subsection (1) or (2), by order provide for that period to be extended by such further period as is specified in the order; and any conditions included in a Channel 3 licence in pursuance of that subsection shall accordingly, in any such case, have effect in relation to that period as so extended.
(4) Any Channel 3 licence or licence to provide Channel 4 or 5 shall include such conditions as appear to OFCOM to be appropriate for requiring the signals carrying the licensed service to attain high standards in terms of technical quality and reliability throughout so much of the relevant area as is for the time being reasonably practicable.
(5) Before imposing any conditions in pursuance of subsection (4) OFCOM shall consult the Secretary of State as to how much of the relevant area is to be specified in the conditions as the area throughout which the required standards are to be attained.
(6) In subsections (4) and (5) “the relevant area”—
(a) in relation to a Channel 3 or Channel 5 licence, means the area for which the licensed service is to be provided; and
(b) in relation to the licence to provide Channel 4, means the United Kingdom.
(7) S4C shall do all that they can to ensure that the signals carrying S4C Digital attain high standards in terms of technical quality and reliability throughout so much of the United Kingdom as is for the time being reasonably practicable.
(8) Any order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.
66A Enforcement of licences held by BBC companies.
(1) Where OFCOM —
(a) give a direction to a BBC company under section 40(1),
(b) serve a notice on a BBC company under any provision of section 41 or 42, or
(c) receive any written representations from a BBC company under section 40(2), 41(3) or 42(8),
OFCOM shall send a copy of the direction, notice or representations to the Secretary of State.
(2) References in subsection (1) to any of the provisions of sections 40 to 42 are references to that provision as applied—
(a) by section 42B(2), in relation to a licence to provide a restricted service,
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e) by section 55(4), in relation to an additional services licence.
Part I of Schedule 7 (which contains provisions relating to the computation of qualifying revenue for the purposes of this Part and Part II) shall have effect.