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Part II Digital terrestrial sound broadcasting

Introductory

40 Radio multiplex services

(1) In this Part“radio multiplex service” means a service provided by any person which consists in the broadcasting for general reception of two or more services specified in subsection (3) by combining the relevant information in digital form, together with any broadcasting in digital form of digital additional services (as defined by section 63(1)).

(2) A service in respect of which a licence under section 46 or 50 is in force is not prevented from being a radio multiplex service at a particular time merely because only one service specified in subsection (3) is being broadcast in digital form at that time.

(3) The services referred to in subsections (1) and (2) are—

(a) a digital sound programme service (as defined by subsection (5)), or

(b) a simulcast radio service (as defined by section 41(2)).

(4) A radio multiplex service provided on a frequency or frequencies assigned to the Authority under section 45(1) may be either—

(a) provided for a particular area or locality in the United Kingdom (a “local radio multiplex service”), or

(b) provided without any restriction by virtue of this Act to a particular area or locality in the United Kingdom (a “national radio multiplex service”).

(5) In this Part “digital sound programme service” means a service consisting in the provision by any person of programmes consisting wholly of sound (together with any ancillary services, as defined by section 63(2)) with a view to their being broadcast in digital form for general reception, whether by him or by some other person, but does not include—

(a) a simulcast radio service (as defined by section 41(2)), or

(b) a service where the sounds are to be received through the use of coded reference to pre-defined phonetic elements of sounds.

(6) The Secretary of State may, if having regard to developments in broadcasting technology he considers it appropriate to do so, by order amend the definition of “digital sound programme service” in subsection (5).

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

(8) In this section—

  • “broadcast” means broadcast otherwise than—

    (a)

    by satellite, or

    (b)

    in the provision of a local delivery service (as defined by section 72(1) of the 1990 Act), and

  • “for general reception” means for general reception in, or in any area in, the United Kingdom.

41 Meaning of “independent national broadcaster” and “simulcast radio service”

(1) In this Part “independent national broadcaster” means any person who is the holder of a national licence (within the meaning of Part III of the 1990 Act).

(2) In this Part a “simulcast radio service” means any service provided for broadcasting in digital form—

(a) which is provided by an independent national broadcaster who has notified the Authority, within the period of one month beginning with the commencement of this section, of his intention to provide a service for broadcasting in that form which corresponds to a national service (within the meaning of Part III of the 1990 Act) provided by him otherwise than in that form, and

(b) which corresponds to that national service.

(3) For the purposes of this Part a service provided for broadcasting in digital form corresponds to a national service (within the meaning of Part III of the 1990 Act) if, and only if, in every calendar month—

(a) at least 80 per cent. of so much of the national service as consists of programmes, consists of programmes which are also included in the digital service in that month, and

(b) at least 50 per cent. of so much of the national service as consists of such programmes is broadcast at the same time on both services.

(4) The Secretary of State may by order amend subsection (3)(a) or (b) by substituting for the percentage for the time being specified there a different percentage specified in the order.

(5) Before making an order under subsection (4) the Secretary of State shall consult such persons appearing to him to represent listeners as he thinks fit.

(6) An order under subsection (4) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(7) In subsection (3) “programme” does not include an advertisement.

General provisions about licences

42 Licences under Part II

(1) Any licence granted by the Radio Authority (in this Part referred to as “the Authority”) under this Part shall be in writing and (subject to the provisions of this Part) shall continue in force for such period as is provided, in relation to a licence of the kind in question, by the relevant provision of this Part.

(2) The Authority—

(a) shall not grant a licence to any person unless they are satisfied that he is a fit and proper person to hold it, and

(b) shall do all that they can to secure that, if they cease to be so satisfied in the case of any person holding a licence, that person does not remain the holder of the licence;

and nothing in this Part shall be construed as affecting the operation of this subsection or of section 44(1) or (2)(b) or (c).

(3) The Authority may vary a licence by a notice served on the licence holder if—

(a) in the case of a variation of the period for which a licence having effect for a specified period is to continue in force, the licence holder consents, or

(b) in the case of any other variation, the licence holder has been given a reasonable opportunity of making representations to the Authority about the variation.

(4) Paragraph (a) of subsection (3) does not affect the operation of section 59(1)(b); and that subsection shall not authorise the variation of any condition included in a licence in pursuance of section 55(1).

(5) A licence granted to any person under this Part shall not be transferable to any other person without the previous consent in writing of the Authority.

(6) Without prejudice to the generality of subsection (5), the Authority shall not give their consent for the purposes of that subsection unless they are satisfied that any such other person would be in a position to comply with all of the conditions included in the licence which would have effect during the period for which it is to be in force.

(7) The holding by any person of a licence to provide any service shall not relieve him of any requirement to hold a licence under section 1 of the [1949 c. 54.] Wireless Telegraphy Act 1949 or section 7 of the [1984 c. 12.] Telecommunications Act 1984 in connection with the provision of that service.

43 General licence conditions

(1) A licence may include—

(a) such conditions as appear to the Authority to be appropriate having regard to any duties which are or may be imposed on them, or on the licence holder, by or under the 1990 Act or this Act;

(b) conditions enabling the Authority to supervise and enforce technical standards in connection with the provision of the licensed service;

(c) conditions requiring the payment by the licence holder to the Authority (whether on the grant of the licence or at such times thereafter as may be determined by or under the licence, or both) of a fee or fees of an amount or amounts so determined;

(d) conditions requiring the licence holder to furnish the Authority, in such manner and at such times as they may reasonably require, with such information as they may require for the purpose of exercising the functions assigned to them by or under this Act;

(e) conditions requiring the licence holder, if found by the Authority to be in breach of any condition of his licence, to reimburse to the Authority, in such circumstances as are specified in any conditions, any costs reasonably incurred by them in connection with the breach of that condition;

(f) conditions providing for such incidental and supplemental matters as appear to the Authority to be appropriate.

(2) A licence may in particular include—

(a) conditions requiring the licence holder—

(i) to comply with any direction given by the Authority as to such matters as are specified in the licence or are of a description so specified, or

(ii) (except to the extent that the Authority consent to his doing or not doing them) not to do or to do such things as are specified in the licence or are of a description so specified; and

(b) conditions requiring the licence holder to permit—

(i) any employee of, or person authorised by, the Authority, or

(ii) any officer of, or person authorised by, the Secretary of State,

to enter any premises which are used in connection with the broadcasting of the licensed service and to inspect, examine, operate or test any equipment on the premises which is used in that connection.

(3) The fees required to be paid to the Authority by virtue of subsection (1)(c) shall be in accordance with such tariff as may from time to time be fixed by the Authority; and the amount of any fee which is to be so paid by the holder of a licence of a particular class or description shall be such as to represent what appears to the Authority to be the appropriate contribution of the holder of such a licence towards meeting the sums which the Authority regard as necessary in order to discharge their duty under paragraph 12(1) of Schedule 8 to the 1990 Act.

(4) A tariff fixed under subsection (3) may specify different fees in relation to different cases or circumstances; and the Authority shall publish every such tariff in such manner as they consider appropriate.

(5) Where the holder of any licence—

(a) is required by virtue of any condition imposed under this Part to provide the Authority with any information, and

(b) in purported compliance with that condition provides them with any information which is false in a material particular,

he shall be taken for the purposes of sections 59, 62 and 66 of this Act and section 111 of the 1990 Act to have failed to comply with that condition.

(6) Nothing in this Act which authorises or requires the inclusion in a licence of conditions relating to any particular matter or having effect for any particular purpose shall be taken as derogating from the generality of subsection (1).

44 Restrictions on holding of licences under Part II

(1) The Authority shall do all that they can to secure—

(a) that a person does not become or remain the holder of a licence if he is a person who is a disqualified person in relation to that licence by virtue of Part II of Schedule 2 to the 1990 Act (as amended by this Act); and

(b) that any requirements imposed by or under Parts III to V of that Schedule (as so amended) are complied with by or in relation to persons holding licences in relation to which those requirements apply.

(2) The Authority may accordingly—

(a) require any applicant for a licence to provide them with such information as they may reasonably require for the purpose of determining—

(i) whether he is such a disqualified person as is mentioned in subsection (1)(a),

(ii) whether any such requirements as are mentioned in subsection (1)(b) would preclude them from granting a licence to him, and

(iii) if so, what steps would be required to be taken by or in relation to him in order for any such requirements to be complied with;

(b) revoke the award of a licence to a body where a relevant change takes place after the award, but before the grant, of the licence;

(c) make the grant of a licence to any person conditional on the taking of any specified steps that appear to them to be required to be taken as mentioned in paragraph (a)(iii);

(d) impose conditions in any licence enabling them to require the licence holder, if a body corporate, to give to them advance notice of proposals affecting—

(i) shareholdings in the body, or

(ii) the directors of the body,

where such proposals are known to the body;

(e) impose conditions in any licence enabling them to give the licence holder directions requiring him to take, or arrange for the taking of, any specified steps appearing to them to be required to be taken in order for any such requirements as are mentioned in subsection (1)(b) to be complied with.

(3) Where the Authority—

(a) revoke the award of any licence in pursuance of subsection (2)(b), or

(b) determine that any condition imposed by them in relation to any licence in pursuance of subsection (2)(c) has not been satisfied,

any provisions of this Part relating to the awarding of licences of the kind in question shall (subject to subsection (4)) have effect as if the person to whom the licence was awarded or granted had not made an application for it.

(4) Those provisions shall not so have effect if the Authority decide that it would be desirable to publish a fresh notice under this Part in respect of the grant of a licence, or (as the case may be) a further licence, to provide the service in question.

(5) Every licence shall include such conditions as the Authority consider necessary or expedient to ensure that where—

(a) the holder of the licence is a body, and

(b) a relevant change takes place after the grant of the licence,

the Authority may revoke the licence by notice served on the holder of the licence and taking effect forthwith or on a date specified in the notice.

(6) The Authority shall not serve any such notice on the licence holder unless—

(a) the Authority have notified him of the matters complained of and given him a reasonable opportunity of making representations to them about those matters, and

(b) in a case where the relevant change is one falling within subsection (7)—

(i) they have also given him an opportunity of complying with Parts III and IV of Schedule 2 to the 1990 Act within a period specified in the notification, and

(ii) the period specified in the notification has elapsed.

(7) A relevant change falls within this subsection if it consists only in one or more of the following—

(a) a reduction in the total number of points, calculated in accordance with paragraph 9 of Part III of Schedule 2 to the 1990 Act, attributable to all the services referred to in paragraph 8(1) or (2)(a) or (b) of that Part of that Schedule,

(b) a change in the national market share (within the meaning of Part IV of that Schedule) of one or more national newspapers (within the meaning of that Part of that Schedule), or

(c) a change in the local market share (within the meaning of that Part of that Schedule) in a particular area of one or more local newspapers (within the meaning of that Part of that Schedule).

(8) In this section “relevant change”, in relation to a body to which a licence has been awarded or granted, means—

(a) any change affecting the nature or characteristics of the body,

(b) any change in the persons having control over or interests in the body, or

(c) any other change giving rise to a failure to comply with any requirement imposed by or under Schedule 2 to the 1990 Act,

being (in any case) a change which is such that, if it fell to the Authority to determine whether to award the licence to the body in the new circumstances of the case, they would be induced by the change to refrain from so awarding it.

Radio multiplex services

45 Assignment of frequencies by Secretary of State

(1) The Secretary of State may by notice assign to the Authority, for the purpose of the provision of radio multiplex services falling to be licensed by them under this Part, such frequencies as he may determine.

(2) Any frequency assigned by the Secretary of State under subsection (1) may be so assigned for use only in such area or areas as may be specified by the Secretary of State when making the assignment.

(3) When assigning a frequency under subsection (1), the Secretary of State shall specify whether the frequency is to be assigned for the purpose of the provision of a national radio multiplex service or for the purpose of the provision of a local radio multiplex service; and any frequency assigned under that subsection shall be taken to be so assigned only for that purpose.

(4) When assigning a frequency under subsection (1) for the purpose of the provision of a national radio multiplex service, the Secretary of State may also direct the Authority to secure that the holder of the licence to provide that service is required—

(a) to broadcast one or more digital sound programme services of a particular character, or

(b) not to broadcast more than a specified number of digital sound programme services of a particular character.

(5) References in subsection (4) to digital sound programme services of a particular character include references to digital sound programme services catering for the tastes and interests of persons living within a specified area or locality.

(6) The Secretary of State may by notice revoke the assignment under subsection (1) of any frequency specified in the notice, and may do so whether or not that frequency is for the time being one on which a radio multiplex service is being provided.

46 National radio multiplex licences

(1) Where the Authority propose to grant a licence to provide a national radio multiplex service, 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 on which the service is to be provided,

(c) specifying, in such manner as the Authority consider appropriate, the area of the United Kingdom in which the frequency is to be available,

(d) where digital capacity on the frequency is reserved in pursuance of a direction under section 48 for the broadcasting of a simulcast radio service, stating that fact and specifying the capacity reserved and the identity of the national service or services concerned,

(e) where the frequency is one in respect of which a direction under section 45(4) has been given, setting out the terms of the direction,

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

(g) specifying the fee payable on any application made in pursuance of the notice, and

(h) stating whether any percentage of multiplex revenue for each accounting period would be payable by an applicant in pursuance of section 55 if he were granted the licence and, if so, specifying that percentage.

(2) Unless an order under section 55(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)(h), and

(b) the Authority may if they think fit (with that consent) specify under subsection (1)(h)—

(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), the Authority—

(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) Any 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)(g),

(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 sound programme services to be broadcast and as to the characteristics of each of those services,

(d) the applicant’s proposals as to the timetable in accordance with which the broadcasting of each of those services 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 the service,

(g) such information as the Authority 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 the Authority 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, the Authority 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 the Authority under this section shall, if they so require, be in such form or verified in such manner as they may specify.

(8) The Authority 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 the Authority 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.

47 Award of national radio multiplex licences

(1) Where the Authority have published a notice under section 46(1), they shall in determining whether, or to whom, to award the national radio multiplex licence in question, have regard to the extent to which, taking into account the matters specified in subsection (2) and any representations received by them in pursuance of section 46(8)(b) with respect to those matters, the award of the licence to each applicant would be calculated to promote the development of digital sound 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 (within the area specified in the notice under section 46(1)(c)) proposed to be achieved by the applicant as indicated in the technical plan submitted by him under section 46(4)(b),

(b) the timetables proposed by the applicant under section 46(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 sound 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 the service, and

(f) whether, in contracting or offering to contract with persons providing digital sound programme services 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 a direction under section 45(4) has effect in relation to any frequency, the Authority shall not award a national radio multiplex licence in relation to that frequency unless they are satisfied that the proposals submitted by the applicant under section 46(4)(c) comply with the direction.

(5) Where the Authority have awarded a national radio 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 the Authority consider appropriate, and

(b) grant the licence to that person.

48 Reservation of capacity for independent national broadcasters

(1) The Secretary of State may, in assigning a frequency to the Authority under section 45 for the purpose of the provision of a national radio multiplex service, direct the Authority that, in relation to each independent national broadcaster specified in the direction, an amount of digital capacity specified in the direction is to be reserved, subject to the provisions of this Part, for the broadcasting of a simulcast radio service.

(2) Before giving a direction under subsection (1) in relation to any simulcast radio service, the Secretary of State shall consult the Authority as to the amount of digital capacity which the Authority consider appropriate in all the circumstances for the broadcasting of that service.

(3) Where a direction under subsection (1) has been given in relation to a frequency—

(a) the Authority shall include in any national radio multiplex licence granted in respect of that frequency such conditions as appear to them to be appropriate for securing that, in consideration of the making by any independent national broadcaster in relation to whom capacity is reserved of such payments as are from time to time agreed between him and the licence holder or (in default of agreement) determined under this section, the licence holder uses such digital capacity not exceeding the amount reserved under subsection (1) as may from time to time be requested by the independent national broadcaster for the broadcasting of services provided by that broadcaster, and

(b) the Authority shall vary the licence under which the national service is provided to include such conditions relating to the broadcasting of the simulcast radio service as they may determine.

(4) Where the holder of a national radio multiplex licence and an independent national broadcaster fail to agree as to the payments to be made under a condition included in the licence in accordance with subsection (3)(a), either of them may refer the matter to the Authority for their determination.

(5) Before making a determination under subsection (4), the Authority shall give the licence holder and the independent national broadcaster an opportunity of making representations to the Authority about the matter.

(6) In making any determination under subsection (4), the Authority shall have regard to—

(a) the expenses incurred, or likely to be incurred, by the licence holder in providing the national radio multiplex service and in broadcasting the simulcast radio service in question, and

(b) the terms on which persons providing national radio multiplex services contract with persons providing national digital sound programme services for the broadcasting of those services.

49 Duty of Authority to reserve digital capacity for certain purposes of BBC

(1) In exercising their powers to grant local radio multiplex licences, the Authority shall reserve to the BBC such digital capacity as the Authority consider appropriate in all the circumstances with a view to enabling every BBC local radio service and every BBC radio service for Wales, Scotland or Northern Ireland to be received in digital form within a coverage area which, so far as reasonably practicable, corresponds with the coverage area for that service as provided otherwise than in digital form.

(2) The circumstances to which the Authority may have regard in performing their duty under subsection (1) include the likely demand for digital capacity by persons providing or proposing to provide local digital sound programme services.

(3) Where the Authority propose to grant a licence to provide a local radio multiplex service, they shall notify the BBC of the Authority’s proposals for reserving to the BBC digital capacity on the frequency in respect of which the licence is to be granted in respect of the area or locality in which it is to be granted.

(4) If the BBC do not give their consent to the proposals within such period as the Authority may specify in their notice under subsection (3), the Authority shall refer the proposals to the Secretary of State, who may determine—

(a) whether any digital capacity is to be reserved to the BBC on the grant of the licence, and

(b) if so, the amount of that capacity.

(5) Before making any determination under subsection (4), the Secretary of State shall give the Authority and the BBC an opportunity of making representations to him about the Authority’s proposals.

(6) Where a local radio multiplex licence is granted in respect of a frequency and area or locality in respect of which digital capacity is reserved in pursuance of this section, the licence shall include such conditions as appear to the Authority to be appropriate for the purpose of securing that, in consideration of the making by the BBC of such payments as are from time to time agreed between the holder of the licence and the BBC, the holder of the licence uses such digital capacity as may from time to time be requested by the BBC (not exceeding the amount so reserved) for the broadcasting of services provided by the BBC.

50 Local radio multiplex licences

(1) Where—

(a) the BBC have given their consent to proposals made to them under subsection (3) of section 49, or

(b) the Secretary of State has made a determination under subsection (4) of that section,

the Authority shall publish, in such manner as they consider appropriate, a notice under subsection (2).

(2) A notice under this subsection is a notice—

(a) stating that the Authority propose to grant a local radio multiplex licence,

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

(c) specifying, in such manner as the Authority consider appropriate, the area or locality in the United Kingdom in which it is to be available,

(d) stating whether in pursuance of a direction under section 49 any digital capacity on the frequency in that area or locality is to be reserved for the broadcasting in digital form of one or more BBC radio services and, if so, specifying the capacity reserved and the identity of the BBC radio services concerned,

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

(f) specifying the fee payable on any application made in pursuance of the notice.

(3) When publishing a notice under subsection (2), the Authority—

(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

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