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Session 2002 - 03
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Communications Bill


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

    297

 

 342   Action following review under s. 341

     (1)    If, on a review under subsection (2) of 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 subsections (4) to (6) of that section, they shall vary the

licence in accordance with subsection (2).

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     (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

relating to any of those matters as they consider appropriate.

10

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

(7) of section 341

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

character of the service or (as the case may be) of any parts of it, or

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

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            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

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

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     (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 the twelve months immediately

before the relevant date.

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     (6)           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.

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

notice of the variation on the licence holder.

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     (8)    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 341, of making

representations to them about the variation.

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

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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.

     (10)   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).

     (11)   Expressions used in this section and section 341 have the same meanings in this

section as in that.

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

    298

 

 343   Changes of control of Channel 5

     (1)    The regulatory regime for Channel 5 includes, in every case where it is

provided by a body corporate—

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

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

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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

their functions under this section and section 344.

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     (2)    OFCOM must carry out a review where—

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

to provide Channel 5, 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

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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

           (b)           the change that has taken place.

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     (4)    The matters mentioned in this subsection are—

           (a)                         the extent to which time available for broadcasting programmes

included in Channel 5 is allocated to programmes of each of the

following descriptions—

                  (i)                 original productions;

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                  (ii)                news programmes; and

                  (iii)               current affairs programmes;

           (b)                         the extent to which programmes of each of those descriptions that are

included in that Channel are broadcast at peak viewing times.

     (5)           The matters mentioned in this subsection are—

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           (a)                         the extent to which programmes made in the United Kingdom that are

included in the service are programmes made outside the M25 area;

           (b)                         the range of programmes made in the United Kingdom outside that

area that are included in Channel 5;

           (c)                         the extent to which the expenditure of the provider of Channel 5 on

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programmes made in the United Kingdom is referable to programme

production at different production centres outside the M25 area;

           (d)           the range of different such production centres to which that

expenditure is referable.

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

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report of that review—

           (a)           setting out their conclusions; and

           (b)           specifying any steps which they propose to take under section 344.

     (7)    In this section—

                    “expenditure”, in relation to a programme, means—

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                  (a)                 expenditure which constitutes an investment in or is otherwise

attributable to the making of the programme; or

 

 

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

    299

 

                  (b)                 expenditure on the commissioning or other acquisition of the

programme or on the acquisition of a right to include it in a

service or to have it broadcast;

                    “original production” has the same meaning as in section 271;

                    “peak viewing time”—

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                  (a)                 in relation to original productions, means a time determined by

OFCOM for the purposes of section 271 to be a peak viewing

time for Channel 5; and

                  (b)                 in relation to news programmes or current affairs programmes,

means a time so determined for the purposes of section 272;

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

over—

                  (a)                 a body holding a licence to provide Channel 5; or

                  (b)                 any body which—

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

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

provision of programmes for inclusion in that channel, 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.

 344   Action following review under s. 343

     (1)    If, on a review under subsection (2) of section 343, it appears to OFCOM that

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

matters mentioned in subsections (4) and (5) of that section, they shall vary the

25

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

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 a new or

35

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 the twelve months immediately

before the relevant date.

     (5)           In subsection (4) “the relevant date” is the date of the relevant change of control

40

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

section.

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

notice of the variation on the licence holder.

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

45

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

 

 

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

    300

 

     (7)    publication of the report of the review under section 343, of making

representations to them about the variation.

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

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.

5

     (9)    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

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

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

10

representations by the licence holder).

     (10)   Expressions used in this section and section 343 have the same meanings in this

section as in that.

 345   Variation of local licence following change of control

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

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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

change of control; and

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

20

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 346.

     (2)           OFCOM must carry out a review where—

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

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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

been previously notified to OFCOM).

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

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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—

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

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           (b)           the character of the service;

           (c)           the extent to which OFCOM’s duty under section 304 is performed in

relation to the service.

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

report of that review—

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           (a)           setting out their conclusions; and

           (b)           specifying any steps which they propose to take under section 346.

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

having control over—

 

 

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

    301

 

           (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

5

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.

 346         Action following review under s. 345

10

     (1)    If, on a review under section 345, 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—

15

           (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

20

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

25

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).

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

30

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

performance during the twelve months before the relevant date they—

           (a)           may determine that subsection (4) is to apply by reference to such other

three month period falling within those twelve months as they may

determine; and

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

holder.

     (6)    In subsection (4) “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.

40

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

notice of the variation on the licence holder.

     (8)    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 345, of making

45

representations to them about the variation.

 

 

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

    302

 

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

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

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

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

further varied by OFCOM either—

5

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

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

86(5)(b) of the 1990 Act (variation after giving opportunity for

representations by the licence holder).

     (11)   Expressions used in this section and section 345 have the same meanings in this

10

section as in that.

Meaning of control

 347   Meaning of “control”

     (1)    In paragraph 1(3)(b) of Part 1 of Schedule 2 to the 1990 Act (control where a

person will be able, without having at least a 50 per cent. interest in it, to have

15

the affairs of a body conducted in accordance with his wishes)—

           (a)           for “will be able” there shall be substituted “would (if he chose to) be

able in most cases or in significant respects”; and

           (b)           for “the affairs” there shall be substituted “affairs”.

     (2)    After paragraph 1(3) of that Part of that Schedule there shall be inserted—

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        “               (3ZA)                A person is to be assumed, unless the contrary is shown, to have

control of a body corporate as mentioned in sub-paragraph (3)(b) if

he is a participant with a 20 per cent. interest in that body or is one

with more than a 20 per cent. interest in that body.”

     (3)    In paragraph 1(6) of that Part of that Schedule—

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           (a)           the words “more than”, wherever occurring shall be omitted; and

           (b)           after paragraph (b) there shall be inserted—

                                     “and references to a participant with more than a 20 per cent.

interest in a body corporate shall be construed accordingly.”

     (4)    It shall be the duty of OFCOM to publish guidance setting out their intentions

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concerning the inclusion of particular matters in the matters that they will take

into account when determining whether a person has control of a body, within

the meaning of paragraph 1(3)(b) of Part 1 of Schedule 2 to the 1990 Act.

     (5)    OFCOM may from time to time revise the guidance issued by them under this

section.

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     (6)    OFCOM must publish the guidance and, where they revise it, the revised

guidance in such manner as they consider appropriate for bringing it to the

attention of the persons who, in their opinion, are likely to be affected by it.

 

 

Communications Bill
Part 3 — Television and Radio Services
Chapter 6 — Other provisions about television and radio services

    303

 

Chapter 6

Other provisions about television and radio services

Annual report on television and radio

 348   Annual factual and statistical report

     (1)    It shall be the duty of OFCOM—

5

           (a)           as soon as practicable after the end of the period of twelve months

beginning with the commencement of this section, and

           (b)           as soon as practicable after the end of every subsequent period of

twelve months,

            to satisfy for that period the review and reporting requirements of this section.

10

     (2)    For any period those obligations are—

           (a)           to carry out a review of the provision of the television and radio

services available for reception by members of the public in the United

Kingdom during that period; and

           (b)           to prepare a factual and statistical report for that period on the

15

provision of those services and on the state of the market in which they

are provided.

     (3)    In carrying out a review for any period under this section, OFCOM must

consider, in particular, each of the following—

           (a)           the extent to which programmes included during that period in

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television and radio services are representative of what OFCOM

consider to be the principal genres for such programmes;

           (b)           the extent to which codes made by OFCOM under this Part or Part 4 or

5 of the 1996 Act (listed events and fairness) have being complied with

during that period;

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           (c)           any trends appearing or operating during that period in the size and

behaviour of the audience for radio and television services;

           (d)           the financial condition during that period of the market in which those

services are provided and of the market in which programmes for such

services are produced;

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           (e)                         what it is appropriate to achieve by conditions and duties under section

270 and paragraphs 1 and 7 of Schedule 12 and the effectiveness for that

purpose of the conditions and duties for the time being in force;

           (f)                         whether it would be appropriate to recommend to the Secretary of State

that he exercises any of his powers under that section or those

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paragraphs;

           (g)                         the extent to which work on independent productions (within the

meaning of that section and those paragraphs) that are produced in the

United Kingdom is done in a range of production centres outside the

M25 area;

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           (h)           any issues relating to intellectual property in programmes that have

arisen or been of significance during that period;

           (i)           developments in technology that have occurred or become important

during that period and are relevant to the provision, broadcasting or

distribution of television and radio programmes;

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           (j)           the availability during that period of persons with skills that are used

or likely to be useful in connection with the provision of television and

 

 

 
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