Broadcasting Act 1996

Multiplex services U.K.

F1 6 Assignment of frequencies by Secretary of State. U.K.

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Textual Amendments

F1 S. 6 repealed (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 19(1) Note 1 (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

Modifications etc. (not altering text)

C1 Pt. 1: transfer of functions (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 1 para. 3(a) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

C2 Pt. 1 modified (29.12.2003) by Communications Act 2003 (c. 21), ss. 215(10)(c), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

C3 Pt. 1 modified (29.12.2003) by Communications Act 2003 (c. 21), ss. 241(1), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

7 Multiplex licences. U.K.

(1) Where [F2 OFCOM] propose to grant a licence to provide a multiplex service (in this Part referred to as a “multiplex licence”) they shall publish, in such manner as they consider appropriate, a notice—

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

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

(c) specifying, in such manner as [F2 OFCOM] consider appropriate, the area or areas in the United Kingdom within which the frequency or frequencies is or are to be available,

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

(e) specifying the fee payable on any application, and

(f) stating whether any percentage of multiplex revenue for each accounting period would be payable by an applicant in pursuance of section 13 if he were granted the licence and, if so, specifying that percentage.

(2) Unless an order under section 13(2) is in force—

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

(b) [F2 OFCOM] may if they think fit (with that consent) specify under subsection (1)(f)—

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

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

(3) When publishing a notice under subsection (1), [F2 OFCOM] —

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

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

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

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

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

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

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

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

(c) the applicant’s proposals as to the number of digital programme services to be broadcast, as to the characteristics of each of those services and as to the areas in which they would be provided,

[F3 (ca) the applicant’s proposals as to the number (if any) of digital sound programmes services which are to be broadcast, as to the characteristics of each of those services and as to the areas in which they would be provided;]

(d) the applicant’s proposals as to the timetable in accordance with which the broadcasting of each of [F4 the services mentioned in paragraphs (c) and (ca)] would begin,

(e) the applicant’s proposals as to the broadcasting of digital additional services,

(f) the applicant’s proposals for promoting or assisting the acquisition, by persons in the proposed coverage area of the service, of equipment capable of receiving all the multiplex services available in that area,

(g) such information as [F2 OFCOM] may reasonably require as to the applicant’s present financial position and his projected financial position during the period for which the licence would be in force, and

(h) such other information as [F2 OFCOM] may reasonably require for the purpose of considering the application.

(5) In subsection (4)(f) “acquisition” includes acquisition on hire or loan.

(6) At any time after receiving such an application and before determining it, [F2 OFCOM] may require the applicant to furnish additional information under any of paragraphs (b) to (h) of subsection (4).

(7) Any information to be furnished to [F2 OFCOM] under this section shall, if they so require, be in such form or verified in such manner as they may specify.

(8) [F2 OFCOM] shall, as soon as reasonably practicable after the date specified in a notice under subsection (1) as the closing date for applications, publish in such manner as they consider appropriate—

(a) the following matters, namely—

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

(ii) the proposals submitted by him under subsection (4)(c), and

(iii) such other information connected with his application as [F2 OFCOM] consider appropriate; and

(b) a notice—

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

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

Textual Amendments

F2 Words in s. 7 substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 79(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F3 S. 7(4)(ca) inserted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 79(3)(a) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F4 Words in s. 7(4)(d) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 79(3)(b) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

Modifications etc. (not altering text)

C4 S. 7(1)(f) restricted (temp. from 20.11.1996 to 29.9.2002) in relation to any notice published by the Commission by S.I. 1996/2759, arts. 2, 3

8 Award of multiplex licences. U.K.

(1) Where [F5 OFCOM] have published a notice under section 7(1), they shall in determining whether, or to whom, to award the multiplex licence in question, have regard to the extent to which, taking into account the matters specified in subsection (2) and any representations made to them in pursuance of section 7(8)(b) with respect to those matters, the award of the licence to each applicant would be calculated to promote the development of digital television broadcasting in the United Kingdom otherwise than by satellite.

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

(a) the extent of the coverage area proposed to be achieved by the applicant as indicated in the technical plan submitted by him under section 7(4)(b),

(b) the timetables proposed by the applicant under section 7(4)(b)(ii) and (d),

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

(d) the capacity of the digital programme services proposed to be included in the service to appeal to a variety of tastes and interests,

(e) any proposals by the applicant for promoting or assisting the acquisition, by persons in the proposed coverage area of the service, of equipment capable of receiving all the multiplex services available in that area, and

(f) whether, in contracting or offering to contract with persons providing digital programme services [F6 , digital sound programme service] or digital additional services, the applicant has acted in a manner calculated to ensure fair and effective competition in the provision of such services.

(3) In subsection (2)(e) “acquisition” includes acquisition on hire or loan.

(4) Where [F5 OFCOM] have awarded a multiplex licence to any person in accordance with this section, they shall, as soon as reasonably practicable after awarding the licence—

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

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

(ii) such other information as [F5 OFCOM] consider appropriate, and

(b) grant the licence to that person.

Textual Amendments

F5 Words in s. 8 substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 80(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F6 Words in s. 8(2)(f) inserted (29.12.2003) by virtue of Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 80(3) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

9 Power to require two or more multiplex licences to be granted to one person. U.K.

(1) [F7 OFCOM] may, before publishing a notice under section 7(1), determine that two or more multiplex licences are on that occasion to be granted to one person.

(2) Where [F7 OFCOM] have so determined, they shall publish a single notice under section 7(1) in relation to the licences.

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

(a) references in section 7(4) to the proposed service shall have effect as references to each of the proposed services,

(b) the reference in section 8(1) to the multiplex licence shall have effect as a reference to all the licences concerned,

(c) in section 8(2), the reference in paragraph (d) to the proposed service shall have effect as a reference to all the proposed services considered together, and other references to the proposed service shall have effect as references either to each of the proposed services or to all of them considered together, as [F7 OFCOM] consider appropriate.

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

Textual Amendments

F7 Words in s. 9 substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 81 (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

10 Award of multiplex licence subject to conditions. U.K.

(1) [F8 OFCOM] may, when awarding a multiplex licence to any person, make the grant of the licence to him conditional on his compliance before the grant with such specified requirements relating to the financing of the service as appear to them to be appropriate, having regard to—

(a) any duties which are or may be imposed on them, or on the licence holder, by or under [F9 this Act, the 1990 Act or Part 3 of the Communications Act 2003] , and

(b) any information provided to them under section 7(4)(g) by the person to whom the licence is awarded as to his projected financial position during the period for which the licence would be in force.

(2) Where [F8 OFCOM] determine that any condition imposed by them in relation to a multiplex licence in pursuance of subsection (1) has not been satisfied, section 8 shall (subject to subsection (3)) have effect as if the person to whom the licence was awarded had not made an application for it.

(3) Section 8 shall not so have effect if [F8 OFCOM] decide that it would be desirable to publish a fresh notice under section 7(1) in respect of the grant of the licence.

Textual Amendments

F8 Words in s. 10 substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 82(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F9 Words in s. 10(1)(a) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 82(3) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

11 Failure to begin providing licensed service and financial penalties on revocation of licence. U.K.

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

(a) that person indicates to [F10 OFCOM] that he does not intend to provide the service in question, or

(b) [F10 OFCOM] for any other reason have reasonable grounds for believing that that person will not provide that service once the licence has come into force.

(2) Subsection (3) shall not apply in the case of any person by virtue of paragraph (b) of subsection (1) unless [F10 OFCOM] have served on him a notice stating their grounds for believing that he will not provide the service in question once his licence has come into force; and they shall not serve such a notice on him unless they have given him a reasonable opportunity of making representations to them about the matters complained of.

(3) Where this subsection applies—

(a) [F10 OFCOM] shall serve on the person to whom the licence has been granted a notice revoking the licence as from the time the notice is served on him, and

(b) section 8 shall (subject to subsection (4)) have effect as if he had not made an application for the licence.

(4) Section 8 shall not have effect as mentioned in subsection (3) if the Commission decide that it would be desirable to publish a fresh notice under section 7(1) in respect of the grant of the licence.

(5) Where [F10 OFCOM] revoke a multiplex licence under this section or under any other provision of this Part, they shall serve on the licence holder a notice requiring him to pay to them, within a specified period, a specified financial penalty F11 ...

[F12 (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.]

(7) Any financial penalty payable by any body by virtue of subsection (5) shall, in addition to being recoverable from that body as provided by section 38(4), be recoverable by [F10 OFCOM] as a debt due to them from any person who controls that body.

Textual Amendments

F10 Words in s. 11 substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 83 (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F11 Words in s. 11(5) repealed (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 13 para. 11(1)(3), Sch. 19(1) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F12 S. 11(5A)-(5D) substituted for s. 11(6) (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 13 para. 11(2)(3) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

Modifications etc. (not altering text)

C5 S. 11 applied (with modifications)(20.11.1996) by S.I. 1996/2760, art. 5(1)(2)(4)

12 Conditions attached to multiplex licence. U.K.

(1) A multiplex licence shall include such conditions as appear to [F13 OFCOM] to be appropriate for securing—

(a) that the licensed service is established by the licence holder in accordance with the timetable and other proposals indicated in the technical plan submitted under section 7(4)(b),

(b) the implementation of any proposals submitted by the licence holder under section 7(4)(c), (d), (e) or (f),

(c) that all digital programme services broadcast under the licence are provided by the holder of a licence under section 18 [F14 , by the BBC] [F15 or by [F16 a CTT broadcaster or are exempt Irish services]],

(d) that all digital additional services broadcast under the licence are provided by the holder of a licence under section 25 [F17 , by the BBC] [F18 or by [F19 a CTT broadcaster or are exempt Irish services]],

[F20 (da) that the only digital sound programme services broadcast under the licence are services provided by the holder of a national digital sound programme licence (within the meaning of section 60) or by the BBC;]

(e) that in the terms on which the licence holder contracts, or offers to contract, for the broadcasting of digital programme services [F21 , digital sound programme services] or digital additional services, he does not show undue discrimination either against or in favour of a particular person providing such a service or a class of such persons,

(f) that the licence holder does not, in any agreement with a person providing a digital programme service [F22 , a digital sound programme service] or digital additional services which entitles that person to use a specified amount of digital capacity on the frequency or frequencies to which the licence relates, restrict that person’s freedom to make arrangements with some other person as to the use of any of that digital capacity (except to the extent that the restriction is reasonably required for the purpose of ensuring the technical quality of the broadcasts or for the purpose of securing compliance with any other condition of the licence),

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

[F23 (h) that, while the licence is in force, at least the required percentage of the digital capacity on the frequency or frequencies on which the service is broadcast is used, or left available to be used, for the broadcasting of services falling within subsection (1A).]

[F24 (1A) The services falling within this subsection are—

(a) qualifying services;

(b) digital programme services licensed under this Part or provided by the BBC;

(c) digital sound programme services provided by the BBC;

(d) programme-related services; and

(e) relevant technical services.]

(2) Any conditions imposed in pursuance of subsection (1)(a) or (b) may be varied by [F13 OFCOM] with the consent of the licence holder (and section 3(4)(b) shall accordingly not apply to any such variation).

(3) Where the licence holder applies to [F13 OFCOM] for the variation of any condition imposed in pursuance of subsection (1)(b) and relating to the characteristics of any of the digital programme services [F25 or digital sound programme services] to be broadcast under the licence, [F13 OFCOM] shall vary the condition accordingly unless it appears to them that, if the application were granted, the capacity of the [F26 so much of what is broadcast under the licence as consists of digital programme services, or of such services together with digital sound programme services,] to appeal to a variety of tastes and interests would be unacceptably diminished.

[F27 (3A) In subsection (1)(c) and (d)—

• “CTT broadcaster” means a person who for the purposes of the European Convention on Transfrontier Television is within the jurisdiction of a CTT State other than the United Kingdom;

• “exempt Irish service” means a service specified in section 211B(1)(b) of the Communications Act 2003.]

(4) In subsection [F28 (1A)] —

(a) “qualifying service” does not include [F29 the digital public teletext service] ,

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

(i) are ancillary to the programmes included in one or more television programme services (within the meaning of Part I of the 1990 Act) [F30 , or in one or more digital sound programme services provided by the BBC,] and are directly related to the contents of those programmes, or

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

(c) “relevant technical service” means any technical service which relates to one or more [F31 services falling within subsection (1A) which are comprised in the multiplex in question].

[F32 (4A) In subsection (1)(h), the reference to the required percentage is a reference to such percentage equal to or more than 90 per cent. as OFCOM—

(a) consider appropriate; and

(b) specify in the condition.]

(5) The Secretary of State may by order amend subsection [F33 (4A)] by substituting for the percentage for the time being specified there a different percentage specified in the order.

(6) No order under subsection (5) shall be made unless a draft of the order has been laid before and approved by a resolution of each House of Parliament.

F34 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F13 Word in s. 12 substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 84 (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F14 Words in s. 12(1)(c) inserted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(1)(a), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F15 Words in s. 12(1)(c) inserted (30.12.1998) by S.I. 1998/3196, reg. 2, Sch. para. 9(2)

F16 Words in s. 12(1)(c) substituted (31.12.2020) by The Broadcasting (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/224), reg. 1(2), Sch. 1 para. 4(2)(a) (with reg. 6) (as amended by S.I. 2020/1536, reg. 5(2)(3)); 2020 c. 1, Sch. 5 para. 1(1)

F17 Words in s. 12(1)(d) inserted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(1)(b), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F18 Words in s. 12(1)(d) inserted (30.12.1998) by S.I. 1998/3196, reg. 2, Sch. para. 9(3)

F19 Words in s. 12(1)(d) substituted (31.12.2020) by The Broadcasting (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/224), reg. 1(2), Sch. 1 para. 4(2)(b) (with reg. 6) (as amended by S.I. 2020/1536, reg. 5(2)(3)); 2020 c. 1, Sch. 5 para. 1(1)

F20 S. 12(1)(da) inserted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(1)(c), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F21 Words in s. 12(1)(e) inserted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(1)(d), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F22 Words in s. 12(1)(f) inserted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(1)(e), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F23 S. 12(1)(h) substituted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(1)(f), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F24 S. 12(1A) inserted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(2), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F25 Words in s. 12(3) inserted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(3)(a), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F26 Words in s. 12(3) substituted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(3)(b), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F27 S. 12(3A) substituted (31.12.2020) by The Broadcasting (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/224), reg. 1(2), Sch. 1 para. 4(3) (with reg. 6) (as amended by S.I. 2020/1536, reg. 5(2)(3)); 2020 c. 1, Sch. 5 para. 1(1)

F28 Words in s. 12(4) substituted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(4)(a), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F29 Words in s. 12(4)(a) substituted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(4)(b), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F30 Words in s. 12(4)(b)(i) inserted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(4)(c), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F31 Words in s. 12(4)(c) substituted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(4)(d), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F32 S. 12(4A) inserted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(5), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F33 Word in s. 12(5) substituted (29.12.2003) by Communications Act 2003 (c. 21), ss. 242(6), 411(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F34 S. 12(7) repealed (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 19(1) Note 1 (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

Modifications etc. (not altering text)

C6 S. 12 applied (with modifications)(20.11.1996) by S.I. 1996/2760, art. 5(1)(3)(4)

C7 S. 12 applied (with modifications) (2.7.2008) by The Television Multiplex Services (Reservation of Digital Capacity) Order 2008 (S.I. 2008/1420), arts. 1, 11

13 Additional payments to be made in respect of multiplex licences. U.K.

(1) Where a multiplex licence is granted in pursuance of a notice under subsection (1) of section 7 which specified a percentage of multiplex revenue under paragraph (f) of that subsection, the licence shall include conditions requiring the licence holder to pay to [F35 OFCOM] (in addition to any fees required to be so paid by virtue of section 4(1)(b)) in respect of each accounting period of his falling within the period for which the licence is in force, an amount representing such percentage of the multiplex revenue for that accounting period (determined under section 14) as was specified in the notice.

(2) The Secretary of State may by order provide that, in relation to any notice under subsection (1) of section 7 published while the order is in force, no percentage shall be specified under paragraph (f) of that subsection.

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

(4) A multiplex licence may include conditions—

(a) enabling [F35 OFCOM] to estimate before the beginning of an accounting period the amount due for that period by virtue of subsection (1), and

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

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

(a) authorising [F35 OFCOM] to revise any estimate on one or more occasions, and to adjust the instalments payable by the licence holder to take account of the revised estimate;

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

(6) Where—

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

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

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

Textual Amendments

F35 Words in s. 13 substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 85 (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

Modifications etc. (not altering text)

C8 S. 13(1) applied (with modifications)(20.11.1996) by S.I. 1996/2760, art. 5(1)(4)(5)

C9 S. 13(2)(3) excluded (20.11.1996) by S.I. 1996/2760, art. 5(6)

C10 S. 13(4)-(6) applied (prosp.) by 1990 c. 42, s. 26(9A) (as inserted by 1996 c. 55, s. 82(3) (with s. 43(1)(6))

14 Multiplex revenue. U.K.

(1) For the purposes of [F36 this Part] the multiplex revenue for each accounting period of [F37 the person who is the multiplex provider in relation to any television multiplex service or any general multiplex service] shall consist of—

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

(i) in consideration of the inclusion in that period, in any digital programme service or digital additional service broadcast by means of [F38 the relevant multiplex] , of advertisements or other programmes, or

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

(b) all payments received or to be received by him or any person connected with him in respect of the broadcasting of [F39 by means of the multiplex service of any service which is a qualifying service or which (without being a qualifying service) is provided by the BBC] ,

(c) all payments received or to be received by any programme provider or any person connected with him from a person other than [F40 the multiplex provider] , an additional services provider or another programme provider—

(i) in consideration of the inclusion in that period, in any digital programme service provided by him for broadcasting by means of [F40 the relevant multiplex] , of advertisements or other programmes, or

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

(d) all payments received or to be received by any additional services provider or any person connected with him from a person other than [F40 the multiplex provider] , a programme provider or another additional services provider—

(i) in consideration of the inclusion in that period, in any digital additional service provided by him for broadcasting by means of [F40 the relevant multiplex] , of advertisements or other programmes, or

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

(2) If, in connection with the inclusion of any advertisements or other programmes whose inclusion is paid for by payments falling within subsection (1)(a)(i), any payments are made to [F41 the multiplex provider] or any connected person to meet any payments payable by [F41 the multiplex provider] by virtue of section 13(1), those payments shall be regarded as made in consideration of the inclusion of the programmes in question.

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

(a) [F41 the multiplex provider] , a programme provider or an additional services provider or any person connected with any of them, and

(b) a person acting as an advertising agent,

the amount of any receipt by [F41 the multiplex provider] , programme provider or additional services provider or any connected person that represents a payment by the advertiser from which the advertising agent has deducted any amount by way of commission shall, except in a case falling within subsection (4), be the amount of the payment by the advertiser after the deduction of the commission.

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

(5) If, in any accounting period of [F41 the multiplex provider] , a programme provider or an additional services provider or a person connected with any of them derives, in relation to any programme to be included in the relevant service, any financial benefit (whether direct or indirect) from payments made by any person other than [F41 the multiplex provider] , by way of sponsorship, for the purpose of defraying or contributing towards costs incurred or to be incurred in connection with that programme, the relevant payments shall be taken to include the amount of the financial benefit so derived by [F41 the multiplex provider] or the connected person, as the case may be.

(6) In subsection (5)—

(a) “the relevant service” means—

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

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

(b) “relevant payments” means—

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

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

(7) Where, in any accounting period of [F41 the multiplex provider] —

(a) [F41 the multiplex provider] provides a digital programme service or digital additional service for broadcasting by means of the multiplex service,

(b) [F41 the multiplex provider] is engaged in any activity which, if engaged in by another person, would result in payments falling within subsection (1)(a) being made to [F41 the multiplex provider] ,

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

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

[F42 OFCOM] may, if they consider that the amount which would (apart from this subsection) be the multiplex revenue for that accounting period is less than it would have been if the digital programme service or digital additional service had been provided, or the activity engaged in, by another person at arm’s length, treat the multiplex revenue as increased by the amount of the difference.

(8) Where, in any accounting period of the holder of the multiplex licence, [F41 the multiplex provider] or a programme provider or additional services provider receives payments falling within subsection (1)(a), (b), (c) or (d) from a person connected with him and it appears to [F42 OFCOM] that the amount which (apart from this subsection) would be the multiplex revenue for that accounting period is less than it would have been if the arrangements between him and the connected person were such as might be expected between parties at arm’s length, [F42 OFCOM] may treat the multiplex revenue as increased by the amount of the difference.

(9) In this section—

• “additional services provider”, in relation to [F43 a television multiplex service or a general multiplex service] , means any person who provides any digital additional service for broadcasting by means of [F44 that multiplex service] ;

• “ [F45 multiplex provider”— ”

  in relation to a television multiplex service for which a person holds a licence under this Part, means the licence holder; and

  in relation to a television multiplex service which is not licensed under this Part or a general multiplex service, means the person who provides that service;]

• “programme provider”, in relation to [F43 a television multiplex service or a general multiplex service] , means any person who provides a digital programme service for broadcasting by means of [F44 that multiplex service] .

• “ [F46 the relevant multiplex - ”

  in relation to a multiplex provider falling within paragraph (a) of the definition of that expression, means the television multiplex service to which his licence relates; and

  in relation to any other multiplex provider, means the television multiplex service or general multiplex service which is provided by him;

  and this section and section 15 shall have effect as if references in this section to digital programme services included references to digital sound programme services and references to digital additional services included references to digital additional services within the meaning of Part 2.]

Textual Amendments

F36 Words in s. 14(1) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 86(2)(a) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F37 Words in s. 14(1) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 86(2)(b) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F38 Words in s. 14(1)(a) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 86(2)(c) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F39 Words in s. 14(1)(b) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 86(2)(d) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F40 Words in s. 14(1)(c)(d) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 86(2)(e) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F41 Words in s. 14(2)-(8) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 86(3)(a) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F42 Words in s. 14(2)-(8) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 86(3)(b) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F43 Words in s. 14(9) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 86(4)(a) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F44 Words in s. 14(9) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 86(4)(b) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F45 Words in s. 14(9) inserted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 86(4)(c) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F46 Words in s. 14(9) inserted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 86(4)(d) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

15 Attribution of multiplex revenue to licence holder and others. U.K.

(1) For the purposes of section [F47 17(2A) and (2B)] , the share of multiplex revenue attributable to [F48 the person who is the multiplex provider in relation to any television multiplex service] in respect of any accounting period of his shall be—

(a) the aggregate of—

(i) payments falling within paragraphs (a) or (b) of section 14(1), and

(ii) payments received or to be received by him from programme providers and additional services providers in respect of the provision [F49 in that period of television multiplex services,]

less

(b) the amount of any payments made or to be made to programme providers or additional service providers which would fall within paragraph (c) or (d) of section 14(1) but for the fact that they are received from [F50 the multiplex provider] .

(2) For the purposes of [F51 sections 23(2A) to (5) and 27(2A) to (5)] , the share of multiplex revenue attributable to a programme provider or additional services provider in relation to [F52 a television multiplex service or a general multiplex service] in respect of any accounting period of [F53 the multiplex provider] shall be—

(a) the aggregate of—

(i) payments falling within paragraph (c) or (d) of section 14(1), and

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

less

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

(3) In a case falling within subsection (7) or (8) of section 14, [F54 OFCOM] may treat the share of multiplex revenue attributable to any person for the accounting period of [F55 the multiplex provider] as increased by such amount as they consider appropriate to take account of the circumstances mentioned in that subsection.

(4) In this section “additional services provider” [F56 , ‘multiplex provider’] and “programme provider”, in relation to [F57 a television multiplex service or a general multiplex service] , have the same meaning as in section 14.

Textual Amendments

F47 Words in s. 15(1) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 13 para. 12(1)(3) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F48 Words in s. 15(1) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 87(2)(a) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F49 Words in s. 15(1) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 87(2)(b) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F50 Words in s. 15(1) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 87(2)(c) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F51 Words in s. 15(2) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 13 para. 12(2)(3) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F52 Words in s. 15(2) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 87(3)(a) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F53 Words in s. 15(2) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 87(3)(b) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F54 Words in s. 15(3) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 87(4)(a) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F55 Words in s. 15(3) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 87(4)(b) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F56 Words in s. 15(4) inserted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 87(5)(a) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F57 Words in s. 15(4) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 87(5)(b) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

16 Duration and renewal of multiplex licences. U.K.

(1) A multiplex licence shall (subject to the provisions of this Part and to section 42 of the 1990 Act as applied by section 17(6)) continue in force for a period of twelve years.

(2) A multiplex licence granted within six years of the commencement of this section may be renewed on one occasion in accordance with this section for a period of twelve years beginning with the date on which it would otherwise expire.

(3) An application for the renewal of a multiplex licence under subsection (2) may be made by the licence holder not earlier than four years before the date on which it would otherwise cease to be in force and not later than [F58 the day falling three months before] the relevant date.

(4) At any time before determining the application, [F59 OFCOM] may—

(a) require the applicant to furnish—

(i) a technical plan which supplements that submitted by the licence holder under section 7(4)(b), and

(ii) proposals which supplement any proposals submitted by the licence holder under section 7(4)(f), and

(b) notify the applicant of requirements which must be met by that supplementary technical plan or those supplementary proposals and relate to the matters referred to in section 7(4)(b)(i) and (ii) and (f).

(5) The consent of the Secretary of State shall be required for any exercise by [F59 OFCOM] of their powers under subsection (4) and for any decision by [F59 OFCOM] not to exercise those powers; and in deciding whether to give his consent the Secretary of State shall have regard to any report made to him under subsection (1)(b) of section 33 and to any representations received by him on consultation under subsection (4) of that section.

(6) F60 ... before the relevant date, [F59 OFCOM] may postpone consideration of it by them for as long as they think appropriate having regard to subsection (10).

(7) Where an application for the renewal of a multiplex licence has been duly made to [F59 OFCOM] they may refuse the application only if—

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

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

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

(8) Subject to subsection (9), on the grant of any such application [F59 OFCOM] may with the consent of the Secretary of State, and shall if so required by him—

(a) specify a percentage different from that specified under section 7(1)(f) as the percentage of multiplex revenue for each accounting period of his that will be payable by the applicant in pursuance of section 13(1) during the period for which the licence is to be renewed, or

(b) specify such a percentage where none was specified under section 7(1)(f);

and [F59 OFCOM] may specify under paragraph (a) or (b) either of the things mentioned in section 7(2)(b).

(9) Where an order under section 13(2) is in force on the relevant date, no percentage of multiplex revenue shall be payable as mentioned in subsection (8)(a) during the period for which the licence is to be renewed.

(10) Where [F59 OFCOM] have granted a person’s application under this section, they shall formally renew his licence from the date on which it would otherwise expire; and they shall not so renew his licence unless they have notified him of any percentage specified by them under subsection (8) and he has, within such period as is specified in that notification, notified them that he consents to the licence being renewed on those terms.

(11) Where a multiplex licence has been renewed under this section, the licence as renewed shall include such further conditions as appear to [F59 OFCOM] to be appropriate for securing the implementation of any supplementary technical plan and supplementary proposals submitted under subsection (4)(a).

(12) In this section “the relevant date”, in relation to a multiplex licence, means the date which [F59 OFCOM] determine to be that by which they would need to publish a notice under section 7(1) if they were to grant, as from the date on which that licence would expire if not renewed, a fresh licence to provide the service formerly provided under that licence.

[F61 (12A) A determination for the purposes of subsection (12)—

(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) Nothing in this section prevents the holder of a multiplex licence from applying for a new licence on one or more occasions in pursuance of a notice under section 7(1).

Textual Amendments

F58 Words in s. 16(3) inserted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 88(3) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F59 Words in s. 16 substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 88(2) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F60 Words in s. 16(6) repealed (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 19(1) Note 1 (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F61 S. 16(12A) inserted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 88(4) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

Modifications etc. (not altering text)

C11 S. 16 applied (with modifications)(20.11.1996) by S.I. 1996/2760, art. 5(1)(4)(7)

C12 S. 16(3) modified (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 18 para. 50(3)-(6) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

17 Enforcement of multiplex licences. U.K.

(1) If [F62 OFCOM] are satisfied that the holder of a multiplex licence has failed to comply with any condition of the licence or with any direction given by [F62 OFCOM] under or by virtue of any provision of this Part, they may (subject to the following provisions of this section) serve on him—

(a) a notice requiring him to pay, within a specified period, a specified financial penalty to [F62 OFCOM] , or

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

(2) The amount of any financial penalty imposed on any person in pursuance of subsection (1)(a) shall not exceed [F63 the maximum penalty given by subsection (2A).]

[F64 (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.]

(4) [F62 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.

(5) Where a licence is due to expire on a particular date by virtue of a notice served on any person under subsection (1)(b), [F62 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.

(6) Section 42 of the 1990 Act (power to revoke Channel 3 or 5 licence) shall have effect in relation to a multiplex licence as it has effect in relation to a Channel 3 licence, but as if the reference in subsection (1)(a) of that section to Part I of the 1990 Act were a reference to this Part.

Textual Amendments

F62 Words in s. 17 substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 89 (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F63 Words in s. 17(2) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 13 para. 13(1)(3) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F64 S. 17(2A)-(2C) substituted for s. 17(3) (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 13 para. 13(2)(3) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

Modifications etc. (not altering text)

C13 S. 17(1) modified (20.7.2004) by The Contracting Out (Functions relating to Broadcast Advertising) and Specification of Relevant Functions Order 2004 (S.I. 2004/1975), art. 1, Sch. para. 4(a) (with art. 5)