Digital Economy Act 2010

38 Payment for licences

(1) Section 12 of the Wireless Telegraphy Act 2006 (charges for grant of licence) is amended as follows.

(2) In subsection (5) at the end insert “, but this is subject to subsection (6).”

(3) After subsection (5) insert—

“(6) Regulations under or for the purposes of subsection (1)(b), so far as it relates to payments during the term of a licence, may be made so as to apply in relation to a licence granted in accordance with regulations under section 14, but only in the following cases—

(a) where provision included in the licence with the consent of the holder of the licence provides for the regulations to apply;

(b) where the licence includes terms restricting the exercise by OFCOM of their power to revoke the licence before the end of a period and that period has expired;

(c) where the licence would, but for a variation, have ceased to have effect at the end of a period and that period has expired;

(d) where the licence is a surrendered-spectrum licence.

(7) Provision may not be made by virtue of subsection (6)(c) or (d) without the consent of the Secretary of State.

(8) A wireless telegraphy licence is a “surrendered-spectrum licence” if —

(a) it is granted under arrangements involving (before the grant or later) the variation, revocation or expiry of another wireless telegraphy licence;

(b) the arrangements are with a view to enabling the holder of that other licence to comply with a limit applying to frequencies in respect of which a person may hold licences; and

(c) it authorises the use after that variation, revocation or expiry of a frequency whose use until then was or is authorised by that other licence.

(9) In relation to a surrendered-spectrum licence there may be more than one such other licence (“predecessor licence”) and a licence may be a predecessor licence to more than one surrendered-spectrum licence.”

(4) Section 14 of the Wireless Telegraphy Act 2006 (bidding for licences) is amended as follows.

(5) In subsection (5) after “those sums must” insert “, subject to subsection (5A),”.

(6) After subsection (5) insert—

“(5A) The regulations may, with the consent of the Secretary of State, make provision permitting or requiring a surrendered-spectrum licence to which the regulations apply to include—

(a) provision requiring all or part of a sum that would otherwise be payable to OFCOM under subsection (5) to be paid to a person who was or is the holder of a predecessor licence;

(b) provision requiring a sum in addition to that payable to OFCOM under subsection (5) to be paid to such a person;

(c) provision specifying any such sum or part or the method for determining it.”

(7) After subsection (8) insert—

“(9) In subsection (5A) “surrendered-spectrum licence” and “predecessor licence” have the meaning given by section 12(8) and (9).”