Digital Economy Bill [HL]

House of Commons

Session 2009 - 10
Internet Publications
Other Bills before Parliament

Digital Economy Bill [HL]

Digital Economy Bill [HL]
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(b)
their rights and duties in relation to the partnership.”
Channel Four Television Corporation
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Functions of C4C in relation to media content
(1)
Before section 199 of the Communications Act 2003 insert—
“198A
C4C’s functions in relation to media content
5
(1)
C4C must participate in—
(a)
the making of a broad range of relevant media content of high
quality that, taken as a whole, appeals to the tastes and interests
of a culturally diverse society,
(b)
the making of high quality films intended to be shown to the
10
general public at the cinema in the United Kingdom, and
(c)
the broadcasting and distribution of such content and films.
(2)
C4C must, in particular, participate in—
(a)
the making of relevant media content that consists of news and
current affairs,
15
(b)
the making of relevant media content that appeals to the tastes
and interests of older children and young adults,
(c)
the broadcasting or distribution by means of electronic
communications networks of feature films that reflect cultural
activity in the United Kingdom (including third party films),
20
and
(d)
the broadcasting or distribution of relevant media content by
means of a range of different types of electronic
communications networks.
(3)
In performing their duties under subsections (1) and (2) C4C must—
25
(a)
promote measures intended to secure that people are well-
informed and motivated to participate in society in a variety of
ways, and
(b)
contribute towards the fulfilment of the public service
objectives (as defined in section 264A).
30
(4)
In performing their duties under subsections (1) to (3) C4C must—
(a)
support the development of people with creative talent, in
particular—
(i)
people at the beginning of their careers in relevant
media content or films, and
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(ii)
people involved in the making of innovative content
and films,
(b)
support and stimulate well-informed debate on a wide range of
issues, including by providing access to information and views
from around the world and by challenging established views,
40
(c)
promote alternative views and new perspectives, and
(d)
provide access to material that is intended to inspire people to
make changes in their lives.
(5)
In performing those duties C4C must have regard to the desirability
of—
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(a)
working with cultural organisations,
(b)
encouraging innovation in the means by which relevant media
content is broadcast or distributed, and
(c)
promoting access to and awareness of services provided in
digital form.
5
(6)
In this section—
“participate in” includes invest in or otherwise procure;
“relevant media content” means material, other than
advertisements, which is included in any of the following
services that are available to members of the public in all or part
10
of the United Kingdom—
(a)
television programme services, additional television
services or digital additional television services,
(b)
on-demand programme services, or
(c)
other services provided by means of the internet where
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there is a person who exercises editorial control over the
material included in the service;

and a film is a “third party film” if C4C did not participate in making it.
(7)
The services that are to be taken for the purposes of this section to be
available to members of the public include any service which—
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(a)
is available for reception by members of the public (within the
meaning of section 361); or
(b)
is available for use by members of the public (within the
meaning of section 368R(4)).”
(2)
In section 199(2) of that Act (functions of C4C), for “C4C’s primary functions
25
are” substitute “In subsection (1) “primary functions” means—
(za)
the performance of C4C’s duties under section 198A;”

and in the heading for that section, at the beginning insert “Other”.
(3)
In Schedule 9 to that Act (arrangements about carrying on C4C’s activities)—
(a)
in paragraph 1(1), after paragraph (a) (but before “and”) insert—
30
“(aa)
as soon as practicable after the day on which section
198A comes into force,”,
(b)
in paragraph 10, in the definition of “relevant licence period”, after
paragraph (a) (but before “and”) insert—
“(aa)
in relation to the notification under paragraph
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1(1)(aa), the period beginning on the day on
which section 198A comes into force and ending
on the last day of the first licence period to expire
after that day;”, and
(c)
in that definition, in paragraph (b), for “any other such notification”
40
substitute “any other notification under paragraph 1”.
(4)
Accordingly, in the heading for Part 3 of that Act (television and radio
services), at the end insert “ETC”.
(5)
In section 24(1) of the Broadcasting Act 1990 (Channel 4 to be provided by
C4C), for “The function of the Corporation shall be to” substitute “The
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Corporation must”.
(6)
In paragraph 1 of Schedule 3 to that Act (status and capacity of C4C)—

Digital Economy Bill [HL]
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(a)
in sub-paragraph (4)(b), for “primary functions” substitute “Channel 4
functions”, and
(b)
after that sub-paragraph insert—
    “(5)
In sub-paragraph (4) “Channel 4 functions” means—
(a)
securing the continued provision of Channel 4, and
5
(b)
the fulfilment of the public service remit for that
Channel under section 265 of the Communications
Act 2003.”
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Monitoring and enforcing C4C’s media content duties
(1)
After section 198A of the Communications Act 2003 insert—
10
“198B
Statement of media content policy
(1)
C4C must prepare a statement of media content policy—
(a)
at the same time as they prepare the first statement of
programme policy that is prepared under section 266 after this
section comes into force, and
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(b)
subsequently at annual intervals.
(2)
C4C must monitor their performance in carrying out the proposals
contained in their statements of media content policy.
(3)
A statement of media content policy must—
(a)
set out C4C’s proposals for securing that, during the following
20
year, they will discharge their duties under section 198A, and
(b)
include a report on their performance in carrying out the
proposals contained in the previous statement.
(4)
In preparing the statement, C4C must—
(a)
have regard to guidance given by OFCOM, and
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(b)
consult OFCOM.
(5)
C4C must publish each statement of media content policy—
(a)
as soon as practicable after its preparation is complete, and
(b)
in such manner as they consider appropriate, having regard to
any guidance given by OFCOM.
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(6)
OFCOM must—
(a)
from time to time review the guidance for the time being in
force for the purposes of this section, and
(b)
revise that guidance as they think fit.
198C
OFCOM reports on C4C’s media content duties
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(1)
For each relevant period, OFCOM must—
(a)
carry out a review of the extent to which C4C have discharged
their duties under section 198A, and
(b)
prepare a report on the matters found on the review.
(2)
OFCOM must publish each report under this section—
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(a)
as soon as practicable after its preparation is complete, and
(b)
in such manner as they consider appropriate.

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(3)
“Relevant period” means each period selected by OFCOM for the
purposes of section 264(1)(b) that ends after this section comes into
force.
198D
Directions in relation to C4C’s media content duties
(1)
This section applies if OFCOM—
5
(a)
are of the opinion that C4C have failed to perform one or more
of their duties under section 198A or section 198B(1), (3) or (5),
(b)
are of the opinion that the failure is serious and is not excused
by economic or market conditions, and
(c)
determine that the situation requires the exercise of their
10
functions under this section.
(2)
In making a determination under subsection (1)(c), OFCOM must have
regard, in particular, to—
(a)
C4C’s statements of media content policy,
(b)
C4C’s effectiveness and efficiency in monitoring their own
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performance, and
(c)
general economic and market conditions affecting the provision
of relevant media content (as defined in section 198A).
(3)
OFCOM may give directions to C4C to do one or both of the
following—
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(a)
to revise the latest statement of media content policy in
accordance with the direction;
(b)
to take such steps for remedying the failure as OFCOM specify
in the direction.
(4)
A direction given under this section must set out—
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(a)
a reasonable timetable for complying with it, and
(b)
the factors that OFCOM will take into account in determining
whether or not a failure has been remedied.
(5)
OFCOM must consult C4C before giving a direction under this
section.”
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(2)
After section 271 of that Act insert—
“271A
Remedying failure by C4C to perform media content duties
(1)
This section applies if OFCOM are satisfied—
(a)
that C4C have failed to comply with a direction under section
198D in respect of a failure to perform one or more of their
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duties under section 198A,
(b)
that C4C are still failing to perform that duty or those duties,
and
(c)
that it would be both reasonable and proportionate to the
seriousness of the failure to vary the licence under which
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Channel 4 is licensed (“the Channel 4 licence”) in accordance
with this section.
(2)
OFCOM may, by notice to C4C, vary the Channel 4 licence by adding
such conditions, or making such modifications of conditions, as
OFCOM consider appropriate for remedying (entirely or partly) C4C’s
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failure to perform the duty or duties under section 198A.

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(3)
If, at any time following such a variation, OFCOM consider that any of
the additional conditions or modifications is no longer necessary, they
may again vary the licence with effect from such time as they may
determine.
(4)
OFCOM must consult C4C before exercising their power under this
5
section to vary the Channel 4 licence.”
Independent television services
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Determination of Channel 3 licence areas
(1)
In section 14 of the Broadcasting Act 1990 (establishment of Channel 3)—
(a)
omit subsection (7) (restriction on providing a single Channel 3 service
10
for the whole of England or the whole of Scotland), and
(b)
after that subsection insert—
“(7A)
The areas mentioned in subsection (2) must at all times include
at least one area that comprises, or falls entirely within,
Scotland.”
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(2)
Section 216 of the Communications Act 2003 (renewal of Channel 3 and 5
licences) is amended as follows.
(3)
For subsection (4) substitute—
“(4)
Where OFCOM receive an application under this section for the
renewal of a licence they must—
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(a)
decide whether to renew the licence; and
(b)
notify the applicant of their decision.
(4A)
If OFCOM decide to renew the licence they must—
(a)
in the case of a licence to provide a Channel 3 service, determine
in accordance with section 216A the area for which the licence
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will be renewed;
(b)
in every case, determine in accordance with section 217 the
financial terms on which the licence will be renewed; and
(c)
notify the applicant of their determinations.”
(4)
After subsection (6) insert—
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“(6A)
OFCOM may also decide not to renew a licence to provide a Channel 3
service if, for the licensing period in question, they have renewed or
propose to renew one or more other licences to provide a Channel 3
service for all of the area to which the licence relates.”
(5)
In subsection (8)(a) for “subsection (4)(c)” substitute “subsection (4A)(c)”.
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(6)
In subsection (10) for the words from “, in accordance” to the end substitute “—
(a)
to any determination under subsection (4A)(a);
(b)
in accordance with the determination under subsection (4A)(b), to the
requirements imposed by section 217(4).”

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(7)
After section 216 of that Act insert—
“216A
Renewal of Channel 3 licences: determination of licence areas
(1)
This section applies if OFCOM decide under section 216(4) to renew a
licence to provide a Channel 3 service.
(2)
The area determined under section 216(4A)(a) for the licence—
5
(a)
must include all or part of the area to which the licence being
renewed currently relates, and
(b)
may include all or part of another area if the holder of the
licence to provide a Channel 3 service for the other area gives
(and does not withdraw) consent before the determination is
10
made.”
(8)
In section 217(1) of that Act, in the opening words, for “section 216(4)(b)”
substitute “section 216(4A)(b)”.
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Initial expiry date for Channel 3 and 5 and public teletext licences
(1)
Section 224 of the Communications Act 2003 (initial expiry date for licences) is
15
amended as follows.
(2)
For subsection (1) (meaning of “initial expiry date”) substitute—
“(1)
Subject to any postponement under this section, for the purposes of this
Part the initial expiry date for the following types of licence is 31
December 2014—
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(a)
a licence to provide a Channel 3 service;
(b)
a licence to provide Channel 5;
(c)
the licence to provide the public teletext service.”
(3)
In subsection (2) (power to postpone initial expiry date), at the end insert “for
one or more of the types of licence mentioned in subsection (1)”.
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(4)
Omit subsection (3) (no postponement if digital switchover is to occur before 1
July 2013).
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Initial expiry date: consequential provision
(1)
Chapter 2 of Part 3 of the Communications Act 2003 (regulatory structure for
independent television services) is amended as follows.
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(2)
In each of sections 214(6) and 216(12) (definition of “licensing period” for
Channels 3 and 5)—
(a)
in the opening words, after “licensing period” insert “, in relation to a
licence,”,
(b)
in paragraph (a), at the end (but before “or”) insert “for that type of
35
licence”, and
(c)
in paragraph (b), at the end insert “for that type of licence”.
(3)
In each of sections 219(3) and 222(12) (definition of “licensing period” for
public teletext service)—
(a)
in paragraph (a), at the end (but before “or”) insert “for the licence to
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provide the public teletext service”, and
(b)
in paragraph (b), at the end insert “for that type of licence”.

Digital Economy Bill [HL]
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(4)
In section 225(3) (period for review of financial terms of replacement Channel
3 and 5 and public teletext licences), after “initial expiry date” insert “for that
type of licence”.
(5)
In section 228(8) (giving effect to review of financial terms of replacement
licence), in the definition of “licensing period”—
5
(a)
after ““licensing period”” insert “, in relation to a licence,”,
(b)
in paragraph (a), at the end (but before “or”) insert “for that type of
licence”, and
(c)
in paragraph (b), at the end insert “for that type of licence”.
(6)
Section 229 (report in anticipation of new licensing round) is amended as
10
follows.
(7)
In subsection (1), after “licensing period” insert “for a type of relevant licence”.
(8)
In subsection (2)—
(a)
for “holders of relevant licences” substitute “holder or holders of that
type of licence”, and
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(b)
for “licence holders” substitute “licence holder or holders”.
(9)
In subsection (3)(a) and (b), for “relevant licences” substitute “that type of
licence”.
(10)
After subsection (4) insert—
“(4A)
Subsection (5) applies where the Secretary of State—
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(a)
receives a report under this section in anticipation of the end of
a licensing period for a type of relevant licence, and
(b)
subsequently makes an order under section 224 extending the
licensing period for that type of licence.”
(11)
In subsection (5)—
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(a)
for the words from the beginning to “the order—” substitute “Where
this subsection applies—”, and
(b)
in paragraph (a), for “he” substitute “the Secretary of State” and at the
end (but before “and”) insert “for that type of licence”.
(12)
In subsection (6), in the definition of “licensing period”—
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(a)
in the opening words, after ““licensing period”” insert “, in relation to a
licence,”,
(b)
in paragraph (a), at the end (but before “or”) insert “for that type of
licence”, and
(c)
in paragraph (b), at the end insert “for that type of licence”.
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(13)
Section 230 (orders suspending rights of renewal) is amended as follows.
(14)
In subsection (2), for “licences for the time being in force that are of a
description specified in the order are” substitute “a licence for the time being
in force that is of a description specified in the order is”.
(15)
In that subsection, at the end insert “(but see subsection (7))”.
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(16)
In each of subsections (3), (4), (5) and (8)(b), for “licences” substitute “a licence”.
(17)
In subsection (7), for “Channel 3 licences” substitute “a Channel 3 licence”.
(18)
In subsection (11), in the definition of “initial licensing period”—