Digital Economy Bill [HL]

House of Lords

Session 2009 - 10
Internet Publications
Other Bills before Parliament

Digital Economy Bill [HL]

Digital Economy Bill [HL]
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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).”
(7)
After section 216 of that Act insert—
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“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—
(a)
must include all or part of the area to which the licence being
30
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
made.”
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(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
amended as follows.
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Digital Economy Bill [HL]
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(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—
(a)
a licence to provide a Channel 3 service;
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(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)”.
(4)
Omit subsection (3) (no postponement if digital switchover is to occur before 1
10
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.
(2)
In each of sections 214(6) and 216(12) (definition of “licensing period” for
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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
licence”, and
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(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
provide the public teletext service”, and
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(b)
in paragraph (b), at the end insert “for that type of licence”.
(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
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licence), in the definition of “licensing period”—
(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”.
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(6)
Section 229 (report in anticipation of new licensing round) is amended as
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
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type of licence”, and
(b)
for “licence holders” substitute “licence holder or holders”.

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(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—
(a)
receives a report under this section in anticipation of the end of
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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)—
(a)
for the words from the beginning to “the order—” substitute “Where
10
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”—
(a)
in the opening words, after ““licensing period”” insert “, in relation to a
15
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”.
(13)
Section 230 (orders suspending rights of renewal) is amended as follows.
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(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))”.
(16)
In each of subsections (3), (4), (5) and (8)(b), for “licences” substitute “a licence”.
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(17)
In subsection (7), for “Channel 3 licences” substitute “a Channel 3 licence”.
(18)
In subsection (11), in the definition of “initial licensing period”—
(a)
after ““initial licensing period”” insert “, in relation to a licence,”, and
(b)
at the end (but before “and”) insert “for that type of licence”.
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Report by OFCOM on public teletext service
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After section 218 of the Communications Act 2003 insert—
“218A
Duty to report on public teletext service
(1)
OFCOM must—
(a)
prepare a report on the public teletext service, and
(b)
send it to the Secretary of State as soon as practicable after this
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section comes into force.
(2)
OFCOM must prepare and send to the Secretary of State further reports
on the public teletext service when asked to do so by the Secretary of
State.
(3)
Each report must include, in particular—
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Digital Economy Bill [HL]
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(a)
an assessment of the advantages and disadvantages for
members of the public of the public teletext service being
provided, and
(b)
an assessment of whether the public teletext service can be
provided at a cost to the licence holder that is commercially
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sustainable.
(4)
An assessment under subsection (3)(a) must take account of alternative
uses for the capacity that would be available if the public teletext
service were not provided.
(5)
“Capacity” means capacity on the frequencies on which Channel 3
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services, Channel 4, S4C and television multiplex services are
broadcast.”
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Power to remove OFCOM’s duty to secure provision of public teletext service
(1)
Section 218 of the Communications Act 2003 (provision of public teletext
service) is amended as follows.
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(2)
In subsection (1)—
(a)
for “must do all that they can to” substitute “may”, and
(b)
at the end insert “and complies with this section”.
(3)
In subsection (7)—
(a)
for “OFCOM must exercise their powers” substitute “If there is a public
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teletext provider, OFCOM must take account of the requirements of the
public teletext service when exercising their powers”, and
(b)
omit the words after paragraph (b).
(4)
Accordingly, in the heading of the section, for “Duty” substitute “Power”.
(5)
Omit section 221 of that Act (replacement of existing public teletext provider’s
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licence).
(6)
In section 276(1) of that Act (co-operation with the public teletext provider), for
“the provider of the service or channel” substitute “, if there is a public teletext
provider, the provider of the Channel 3 service or Channel 4”.
(7)
In section 362 of that Act (interpretation of Part 3), in the definition of “the
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public teletext service”, for “is required to be” substitute “is or may be”.
(8)
The amendments made by this section and the entries in Schedule 3 relating to
sections 218(7) and 221 of the Communications Act 2003 (and section 46 so far
as relating to those entries) come into force on such day as the Secretary of State
may by order made by statutory instrument appoint.
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(9)
An order may not be made under subsection (8) unless—
(a)
condition A or B is met,
(b)
the Secretary of State is satisfied that making the order is in the public
interest, and
(c)
a draft of the instrument containing the order has been laid before, and
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approved by a resolution of, each House of Parliament.
(10)
Condition A is that the Secretary of State has laid before Parliament a report by
the Office of Communications (“OFCOM”) under section 218A of the
Communications Act 2003 (report on public teletext service).

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(11)
Condition B is that OFCOM have invited applications for the licence to provide
the public teletext service (within the meaning of Part 3 of the Communications
Act 2003) and—
(a)
no applications were made by the closing date, or
(b)
OFCOM considered that they could not award the licence to any of the
5
applicants.
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Appointed providers of regional or local news
After section 287 of the Communications Act 2003 insert—
“287A
Appointed providers of regional or local news
(1)
OFCOM may—
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(a)
appoint a person to provide relevant media content consisting
of regional news or local news (or both) for all or part of a
designated Channel 3 area, and
(b)
pay amounts to the appointed person for use in, or in
connection with, the provision of such content.
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(2)
Where a person has been appointed under this section to provide news
for all or part of a designated Channel 3 area, the regulatory regime for
the regional Channel 3 service provided for that area includes the
conditions (if any) that OFCOM consider appropriate for securing that
the service includes news programmes provided by that person.
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(3)
OFCOM must publish the criteria that they intend to use in making an
appointment under this section.
(4)
The appointment—
(a)
must specify the period for which the person is appointed,
(b)
must specify the area for which the person is appointed (the
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“appointed area”),
(c)
may specify the parts of the appointed area, or the communities,
for which the appointed person is to provide local news,
(d)
may make provision for the variation of the appointment,
including the appointed area,
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(e)
may be made subject to such conditions as OFCOM consider
appropriate, and
(f)
may be revoked by OFCOM at any time.
(5)
The conditions may include, in particular, conditions requiring the
appointed person to make the relevant media content available to—
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(a)
the provider of the regional Channel 3 service for the appointed
area,
(b)
the body corporate appointed under section 280 as the
appointed news provider for Channel 3, and
(c)
any other person.
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(6)
The conditions may also include, in particular—
(a)
conditions relating to the form, character and quality of the
relevant media content,
(b)
conditions requiring the appointed person to broadcast or
distribute the relevant media content, whether by means
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involving the use of an electronic communications network or
otherwise, and
(c)
conditions requiring the appointed person to support and
promote the provision by other persons of regional news or
local news (or both) for the appointed area, whether in the form
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of relevant media content or otherwise.
(7)
An amount paid under this section may be paid on such conditions as
OFCOM consider appropriate, including—
(a)
conditions as to the use of the amount, and
(b)
conditions as to the circumstances in which all or part of the
10
amount must be repaid.
(8)
Section 287(5) and (6) apply to a condition imposed under subsection
(2) as they apply to a condition imposed under that section.
(9)
OFCOM must consult the Secretary of State—
(a)
before publishing criteria in accordance with subsection (3), and
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(b)
before determining conditions to be imposed under subsection
(4)(e) or (7).
(10)
In this section—
“designated Channel 3 area” means an area—
(a)
for which a regional Channel 3 service is provided, and
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(b)
which has been designated for the purposes of this
section by OFCOM with the consent of the Secretary of
State;
“local news”, for an appointed area, means news that is intended
to be of particular interest to persons living within a part of the
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area or to a particular community living within the area;
“regional news”, for an appointed area, means news that is
intended to be of particular interest to persons living within the
area;
“relevant media content” means material, other than
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advertisements, which is included, or is capable of being
included, in any of the following services that are available to
members of the public in all or part of the United Kingdom—
(a)
television programme services, additional television
services or digital additional television services,
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(b)
on-demand programme services, or
(c)
other services provided by means of the internet where
there is a person who exercises editorial control over the
material included in the service.
(11)
The services that are to be taken for the purposes of this section to be
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available to members of the public include any service which—
(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)).”
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