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5. Part 2 has effect as if after section 49 there were inserted—
49A.—(1) In exercising their power to grant or renew a small-scale radio multiplex licence, OFCOM must reserve to the holders of community digital sound programme licences such digital capacity as OFCOM consider appropriate to enable at least three community digital sound programme services to be received within the coverage area of the licence.
(2) OFCOM, in performing their duty under subsection (1), must have regard to the likely demand for digital capacity by persons providing or proposing to provide community digital sound programme services in the coverage area of the licence.
(3) A small-scale radio multiplex licence must include such conditions as appear to OFCOM to be appropriate for the purpose of securing that the holder of the licence uses the digital capacity reserved pursuant to subsection (1) solely for the purpose of broadcasting community digital sound programme services.
(4) OFCOM may, if the requirements of subsections (5) to (8) are met, vary a small-scale radio multiplex licence by varying the digital capacity reserved for community digital sound programme services.
(5) OFCOM must have received an application for the variation from the licence holder.
(6) Before deciding whether to grant the application, OFCOM must publish a notice specifying—
(a)the proposed variation of the licence, and
(b)the period in which representations may be made to OFCOM about the proposal.
(7) OFCOM must not vary the licence if it appears to them that, if the application were granted, the digital capacity reserved would not be sufficient to enable three community digital sound programme services to be received within the coverage area of the licence.
(8) OFCOM may vary the licence in accordance with the application only if—
(a)a period of not less than three years has elapsed since the licence was granted,
(b)a part of the digital capacity reserved in pursuance of this section is unused, and
(c)they are satisfied—
(i)the holder of the licence has taken reasonable steps to identify persons who may be interested in providing a community digital sound programme service within the coverage area of the licence,
(ii)the holder of the licence, in contracting or offering to contract with persons providing or proposing to provide community digital sound programme services, has acted in good faith, and
(iii)it is unlikely that the unused capacity will be used during the remainder of the licence period.”.
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