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Communications Bill


Communications Bill
Part 3 — Television and Radio Services
Chapter 5 — Media ownership and control

    286

 

                    (f)                   a national digital sound programme licence (within the

meaning given by section 60 of the 1996 Act for the purposes

of Part 2 of that Act);

                    (g)                                         a local digital sound programme licence (within the meaning

given by that section for those purposes);

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                    (h)                                         a digital additional services licence (within the meaning

given by section 64 of the 1996 Act for the purposes of Part 2

of that Act).

                       (5)                OFCOM must publish guidance for persons making applications to

them under this paragraph as to the principles that they will apply

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when determining for the purposes of sub-paragraph (2) what is

appropriate.

                       (6)                OFCOM must have regard to guidance for the time being in force

under sub-paragraph (5) when making determinations under this

paragraph.

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                       (7)                OFCOM may revise any guidance under sub-paragraph (5) by

publishing their revisions of it.

                       (8)                 The publication of guidance under sub-paragraph (5), or of any

revisions of it, is to be in whatever manner OFCOM consider

appropriate.”

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     (4)    In paragraph 4(2)(b) of that Part (bodies that are relevant bodies for the

purposes of general disqualification on grounds of undue influence) for “as

mentioned in paragraph (a)(i) or (ii) above” there shall be substituted—

                           “(i)                             by a person falling within paragraph 1(1)(c) to (g)

above;

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                           (ii)                             by a person falling within paragraph 3 above; or

                           (iii)                             by two or more persons taken together each of whom

falls within sub-paragraph (i) or (ii) (whether or not

they all fall within the same sub-paragraph).”

     (5)    The Secretary of State may by order make provision—

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           (a)           for repealing paragraph 2 or 2A of Part 2 of Schedule 2 to the 1990 Act,

or both of them; or

           (b)           for making such other modifications of either or both of those

paragraphs as he thinks fit.

     (6)    Before making an order under subsection (5) (other than one that is confined to

35

giving effect to recommendations made by OFCOM in a report of a review

under section 377), the Secretary of State must consult OFCOM.

     (7)    No order is to be made containing provision authorised by subsection (5)

unless a draft of the order has been laid before Parliament and approved by a

resolution of each House.

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 336   Licence holding by local authorities

     (1)    In Part 2 of Schedule 2 to the 1990 Act (disqualification from holding licences),

in paragraph 1 (which includes a disqualification for local authorities)—

           (a)           in sub-paragraph (1), for “sub-paragraph (2)” there shall be substituted

“sub-paragraph (1A)”; and

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           (b)           after that sub-paragraph there shall be inserted—

 

 

Communications Bill
Part 3 — Television and Radio Services
Chapter 5 — Media ownership and control

    287

 

                                    “(1A)                      Where a service is provided exclusively for the purposes of

the carrying out of the functions of a local authority under

section 142 of the Local Government Act 1972 (provision by

local authorities of information relating to their activities), a

person is disqualified by virtue of sub-paragraph (1) in

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relation to a licence to provide that service only if he would

be so disqualified disregarding paragraph (c) of that sub-

paragraph.”

     (2)    In section 142 of the Local Government Act 1972 (c. 70) (provision by local

authorities of information relating to their activities), after subsection (1A)

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there shall be inserted—

           “(1AA)              A local authority may—

                  (a)                 for the purpose of broadcasting or distributing information

falling within subsection (1AB), provide an electronic

communications network or electronic communications

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service, or

                  (b)                 arrange with the provider of such a network or service for the

broadcasting or distribution of such information by means of

the network or service.

           (1AB)              Information falls within this subsection, in relation to a local authority,

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if it is one or both of the following—

                  (a)                 information concerning the services within the area of the

authority that are provided either by the authority themselves

or by other authorities mentioned in subsection (1B) below;

                  (b)                 information relating to the functions of the authority.

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           (1AC)              Nothing in subsection (1AA) entitles a local authority to do anything in

contravention of a requirement or restriction imposed by or under—

                  (a)                 the Wireless Telegraphy Act 1949,

                  (b)                 the Broadcasting Act 1990,

                  (c)                 the Broadcasting Act 1996, or

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                  (d)                 the Communications Act 2003,

                         and in that subsection ‘electronic communications network’ and

‘electronic communications service’ each has the same meaning as in

the Communications Act 2003.”

     (3)    In section 2(1) of the Local Government Act 1986 (c. 10) (restriction on

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publication by a local authority of material designed to affect support for a

political party), after “publish” there shall be inserted “, or arrange for the

publication of,”.

 337   Relaxation of licence-holding restrictions

     (1)    Parts 3 to 5 of Schedule 2 to the 1990 Act (restrictions on accumulations of

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interests and on licence holding by newspaper proprietors and public

telecommunications providers) shall cease to have effect.

     (2)    In each of sections 5 and 88 of the 1990 Act and of sections 5 and 44 of the 1996

Act (under which the provisions of Schedule 2 to the 1990 Act are given effect),

for paragraph (b) of subsection (1) there shall be substituted—

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                  “(b)                    that a person does not become the holder of a licence if

requirements imposed by or under Schedule 14 to the

 

 

Communications Bill
Part 3 — Television and Radio Services
Chapter 5 — Media ownership and control

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                  Communications Act 2003 would be contravened were he to do

so; and

                  (c)                     that those requirements are not contravened in the case of a

person who already holds a licence.”

     (3)    Schedule 14 (which provides for the imposition of requirements which, in the

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case of Channel 3 services and certain radio services, replace those imposed by

or under Parts 3 and 4 of Schedule 2 to the 1990 Act) shall have effect.

     (4)    The Secretary of State must not by order under section 395 appoint a day falling

before the commencement day for paragraph 11 of Schedule 14 as the day for

the coming into force of the repeal by this Act of any of the provisions of Parts

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3 and 4 of Schedule 2 to the 1990 Act so far as they relate to the holding of

licences for the provision of any local services (within the meaning of Part 3 of

that Act).

     (5)    The Secretary of State must not by order under section 395 appoint a day falling

before the commencement day for paragraph 12 of Schedule 14 as the day for

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the coming into force of the repeal by this Act of any of the provisions of Parts

3 and 4 of Schedule 2 to the 1990 Act so far as they relate to the holding of local

digital sound programme licences or the provision of local digital sound

programme services.

     (6)    In this section “the commencement day”, in relation paragraph 11 or 12 of

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Schedule 14, means the day on which the first order to be made under that

paragraph comes into force.

 338   Restrictions relating to nominated news providers

     (1)    In subsection (9) of section 32 of the 1990 Act (limits on participation in

nominated news providers), for “20 per cent.” there shall be substituted “40 per

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cent.”.

     (2)    For subsection (10) of that section (connected persons treated as one person)

there shall be substituted—

           “(10)              A limit imposed in accordance with subsection (9) shall have effect—

                  (a)                 in relation to a participant who holds a regional Channel 3

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licence, as if the persons holding such licences, together with the

persons connected with each of them, were all one person; and

                  (b)                 in relation to any other participant, as if he and the persons

connected with him were one person.”

     (3)    The Secretary of State may by order make provision—

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           (a)           for repealing any of the provisions of subsections (8) to (11) of section

32 of the 1990 Act, or all of them; or

           (b)           for making such other modifications of those subsections as he thinks

fit.

     (4)    Before making an order under subsection (3) (other than one that is confined to

40

giving effect to recommendations made by OFCOM in a report of a review

under section 377), the Secretary of State must consult OFCOM.

     (5)    No order is to be made containing provision authorised by subsection (3)

unless a draft of the order has been laid before Parliament and approved by a

resolution of each House.

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Communications Bill
Part 3 — Television and Radio Services
Chapter 5 — Media ownership and control

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Changes of control

 339   Changes of control of Channel 3 services

     (1)    The regulatory regime for every regional Channel 3 service provided by a body

corporate includes—

           (a)           a condition requiring the licence holder to give OFCOM advance

5

notification of any proposals known to the body that may give rise to a

relevant change of control; and

           (b)           a condition requiring the licence holder to provide OFCOM, in such

manner and at such times as they may reasonably require, with such

information as they consider necessary for the purposes of exercising

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their functions under this section and section 340.

     (2)    OFCOM must carry out a review where—

           (a)           they receive notification, in accordance with a condition of a regional

Channel 3 licence, of proposals that may give rise to a relevant change

of control; or

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           (b)           a relevant change of control takes place (whether or not that change has

been previously notified to OFCOM).

     (3)    The review shall be a review of the effects or likely effects, in relation to the

matters mentioned in subsections (4) and (5), of—

           (a)           the change to which the proposals may give rise; or

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           (b)           the change that has taken place.

     (4)    The matters mentioned in this subsection are—

           (a)           the quality or range of regional programmes included in the service;

           (b)           the quality or range of other programmes included in the service which

contribute to the regional character of the service; or

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           (c)           the quality or range of the programmes made available by the licence

holder for the purposes of inclusion in the nationwide system of

services referred to in section 14(1) of the 1990 Act (nationwide Channel

3 service).

     (5)    The matters mentioned in this subsection are—

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           (a)           the amount of time given, in the programmes included in the service—

                  (i)                 to regional programmes; or

                  (ii)                to programmes included in the service which contribute to the

regional character of the service;

           (b)           the proportion of regional programmes included in the service which

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are made within the area for which the service is provided;

           (c)           the extent of the use, in connection with the service, of the services of

persons employed (whether by the licence holder or any other person)

within that area;

           (d)           the extent to which managerial or editorial decisions relating to

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programmes to be included in the service are taken by persons so

employed within that area.

     (6)    Where OFCOM carry out a review under subsection (2), they must publish a

report of that review—

           (a)           setting out their conclusions; and

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           (b)           specifying any steps which they propose to take under section 340.

 

 

Communications Bill
Part 3 — Television and Radio Services
Chapter 5 — Media ownership and control

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     (7)    In this section—

                    “regional programme”, in relation to a regional Channel 3 service, means

a programme (including a news programme) which is of particular

interest—

                  (a)                 to persons living within the area for which the service is

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provided;

                  (b)                 to persons living within a part of that area; or

                  (c)                 to particular communities living within that area;

                    “relevant change of control” means a change in the persons having control

over—

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                  (a)                 a body holding the licence to provide a regional Channel 3

service; or

                  (b)                 any body which—

                      (i)                     is connected with a body holding such a licence; and

                      (ii)                    appears to OFCOM to be involved, to any extent, in the

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provision of programmes for inclusion in the service

provided under that licence, or to be likely to be so

involved.

     (8)    Expressions used in this section and in Part 1 of Schedule 2 to the 1990 Act

(restrictions on licence holders) have the same meanings in this section as in

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that Part.

 340   Action following review under s. 339

     (1)    If, on a review under subsection (2) of section 339, it appears to OFCOM that

the relevant change of control is or would be prejudicial to one or more of the

matters mentioned in subsection (4) of that section, they shall vary the licence

25

in accordance with subsection (2).

     (2)           The variation—

           (a)           must be made with a view to ensuring that the relevant change of

control is not prejudicial to any of the matters so mentioned; and

           (b)           must be a variation for the inclusion in the licence of such conditions

30

relating to any of those matters as they consider appropriate.

     (3)    If it appears to OFCOM, having regard to the matters mentioned in subsection

(5) of section 339

           (a)           that the proposed change of control would be prejudicial to the regional

character of the service, or

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           (b)           that the actual change of control is so prejudicial,

            they may vary the licence so as to include in it such conditions relating to any

of those matters as they consider appropriate.

     (4)    Subject to subsection (5), any new or varied condition imposed under this

section in relation to any matter may be more onerous than the conditions

40

relating to that matter having effect before the relevant change of control.

     (5)    A variation under this section must not provide for the inclusion of a new or

varied condition in a licence unless the new condition, or the condition as

varied, is one which (with any necessary modifications) would have been

satisfied by the licence holder throughout—

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           (a)           the three months immediately before the relevant date; or

 

 

Communications Bill
Part 3 — Television and Radio Services
Chapter 5 — Media ownership and control

    291

 

           (b)           such other three month period as has been notified under subsection

(6).

     (6)    If OFCOM consider that the performance of the licence holder during the three

month period immediately preceding the relevant date is not typical of his

performance during the twelve months before the relevant date they—

5

           (a)           may determine that subsection (5) is to apply by reference to such other

three month period falling within those twelve months as they may

determine; and

           (b)           must notify any determination under this subsection to the licence

holder.

10

     (7)           In subsection (5) “the relevant date” is the date of the relevant change of control

or, if earlier, the date on which OFCOM exercise their powers under this

section.

     (8)    A variation of a licence under this section shall be effected by the service of a

notice of the variation on the licence holder.

15

     (9)    OFCOM are not to serve a notice of a variation under this section unless they

have given the body on whom it is served a reasonable opportunity, after the

publication of the report of the review under section 339, of making

representations to them about the variation.

     (10)   Where, in a case of a proposed change of control, a notice varying a licence

20

under this section is served before the change to which it relates takes place, the

variation is not to take effect until the change takes place.

     (11)   A condition included in a licence by a variation under this section may be

further varied by OFCOM either—

           (a)           with the consent of the licence holder; or

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           (b)           in any other case, after complying with the requirements of section

3(4)(b) of the 1990 Act (variation after giving opportunity for

representations by the licence holder).

     (12)   Expressions used in this section and section 339 have the same meanings in this

section as in that.

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 341   Variation of local licence following change of control

     (1)    The regulatory regime for every local sound broadcasting service provided by

a body corporate includes—

           (a)           a condition requiring the licence holder to give OFCOM advance

notification of any proposals known to it that may give rise to a relevant

35

change of control; and

           (b)           a condition requiring the licence holder to provide OFCOM, in such

manner and at such times as they may reasonably require, with such

information as they consider necessary for the purposes of exercising

their functions under this section and section 342.

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     (2)           OFCOM must carry out a review where—

           (a)           they receive notification, in accordance with a condition of a local

sound broadcasting licence, of proposals that may give rise to a

relevant change of control; or

           (b)           a relevant change of control takes place (whether or not that change has

45

been previously notified to OFCOM).

 

 

Communications Bill
Part 3 — Television and Radio Services
Chapter 5 — Media ownership and control

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     (3)    The review shall be a review of the effects or likely effects, in relation to the

matters mentioned in subsection (4), of—

           (a)           the change to which the proposals may give rise; or

           (b)           the change that has taken place.

     (4)           Those matters are—

5

           (a)           the quality or range of programmes included in the service;

           (b)           the character of the service; and

           (c)           the extent to which OFCOM’s duty under section 302 is performed in

relation to the service.

     (5)           Where OFCOM carry out a review under subsection (2), they must publish a

10

report of that review—

           (a)           setting out their conclusions; and

           (b)           specifying any steps which they propose to take under section 342.

     (6)    In this section “relevant change of control” means a change in the persons

having control over—

15

           (a)           a body holding the licence to provide a local sound broadcasting

service; or

           (b)           any body which—

                  (i)                 is connected with a body holding such a licence; and

                  (ii)                appears to OFCOM to be involved, to any extent, in the

20

provision of programmes for inclusion in the service provided

under that licence, or to be likely to be so involved.

     (7)    Expressions used in this section and in Schedule 2 to the 1990 Act (restrictions

on licence holders) have the same meanings in this section as in that Schedule.

 342         Action following review under section 341

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     (1)    If, on a review under section 341, it appears to OFCOM that the relevant change

of control is or would be prejudicial to one or more of the matters mentioned

in subsection (4) of that section, they must vary the local licence in accordance

with subsection (2).

     (2)           The variation—

30

           (a)           must be made with a view to ensuring that the relevant change of

control is not prejudicial to any of the matters so mentioned; and

           (b)           must be a variation for the inclusion in the licence of such conditions

relating to any of those matters as they consider appropriate.

     (3)    Subject to subsection (4), any new or varied condition imposed under this

35

section in relation to any matter may be more onerous than the conditions

relating to that matter having effect before the relevant change of control.

     (4)    A variation under this section must not provide for the inclusion of any new or

varied condition in a licence unless the new condition, or the condition as

varied, is one which (with any necessary modifications) would have been

40

satisfied by the licence holder throughout—

           (a)           the three months immediately before the relevant date; or

           (b)           such other three month period as has been notified under subsection

(5).

 

 

 
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