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Digital additional services provided on television broadcasting frequencies

24 Digital additional services

(1) In this Part “digital additional service” means any service which—

(a) is provided by any person with a view to its being broadcast in digital form by means of a multiplex service, whether by him or by some other person, but

(b) is not a digital programme service, a qualifying service, an ancillary service or a technical service.

(2) In this Part “ancillary service” means any service which is provided by the holder of a digital programme licence or by an independent analogue broadcaster and consists in the provision of—

(a) subtitling for the deaf in connection with programmes included in a digital programme service or qualifying service provided by him, or

(b) other services (apart from advertising) which—

(i) are ancillary to such programmes and directly related to their contents, or

(ii) relate to the promotion or listing of such programmes.

(3) In this Part “technical service” means a service which—

(a) is provided for technical purposes connected with the encryption or decryption of one or more digital programme services or digital additional services, and

(b) is of a description specified in an order made by the Secretary of State.

(4) An order under subsection (3) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

25 Licensing of digital additional services

(1) An application for a licence to provide digital additional services (in this Part referred to as a “digital additional services licence”) shall—

(a) be made in such manner as the Commission may determine, and

(b) be accompanied by such fee (if any) as they may determine.

(2) At any time after receiving such an application and before determining it, the Commission may require the applicant to furnish such additional information as they may consider necessary for the purpose of considering the application.

(3) Any information to be furnished to the Commission under this section shall, if they so require, be in such form or verified in such manner as they may specify.

(4) Where an application for a digital additional services licence is made to the Commission in accordance with the provisions of this section, they shall grant the licence unless precluded from doing so by section 3(3)(a) or 5(1).

(5) Subject to subsection (6), sections 6 to 12 of the 1990 Act (general provisions relating to services licensed under Part I of that Act) shall apply in relation to any digital additional service which is licensed under this Part of this Act and is broadcast for general reception in, or in any area in, the United Kingdom as they apply in relation to services licensed under Part I of the 1990 Act.

(6) In its application in relation to a digital additional service—

(a) section 6 of the 1990 Act shall have effect with the omission of subsection (8), and

(b) section 12(1)(b) of the 1990 Act shall have effect as if the reference to the Commission’s functions under Chapter II of Part I of that Act included a reference to their functions under this Part.

26 Duration and conditions of digital additional services licence

(1) Subject to the provisions of this Part and to section 42 of the 1990 Act as applied by section 27(8), a digital additional services licence shall continue in force until it is surrendered by its holder.

(2) A digital additional services licence shall include such conditions as appear to the Commission to be appropriate for requiring the holder of the licence—

(a) on entering into any agreement with the holder of a multiplex licence for the broadcasting of digital additional services by means of a multiplex service, to notify the Commission—

(i) of the identity of the multiplex service,

(ii) of the period during which the services will be provided,

(iii) where under the agreement the holder of the digital additional services licence will be entitled to the use of a specified amount of digital capacity, of that amount,

(b) when any such agreement is varied so far as it relates to any of the matters mentioned in paragraph (a)(i), (ii) or (iii), to notify the Commission of the variation so far as relating to those matters, and

(c) where he is providing digital additional services to the holder of a multiplex licence in accordance with such an agreement as is mentioned in paragraph (a) but intends to cease doing so, to notify the Commission of that fact.

27 Enforcement of digital additional services licences

(1) If the Commission are satisfied that the holder of a digital additional services licence has failed to comply with any condition of the licence or with any direction given by the Commission under or by virtue of any provision of this Part, they may (subject to the following provisions of this section) serve on him—

(a) a notice requiring him to pay, within a specified period, a specified financial penalty to the Commission, or

(b) a notice providing that the licence is to expire on a specified date, which shall be at least one year from the date of service of the notice.

(2) The amount of any financial penalty imposed on any person in pursuance of subsection (1)(a) shall not exceed whichever is the greater of—

(a) £50,000, or

(b) the amount determined under subsection (3).

(3) The amount referred to in subsection (2)(b) is—

(a) in a case where a penalty under this section has not previously been imposed on the holder of the digital additional services licence during any period for which his licence has been in force, 3 per cent. of the aggregate amount of the shares of multiplex revenue attributable to him in relation to multiplex services in respect of relevant accounting periods (as determined in accordance with section 15), and

(b) in any other case, 5 per cent. of the aggregate amount of those shares of multiplex revenue (as so determined).

(4) In subsection (3)(a) “relevant accounting period”, in relation to a multiplex service, means the last accounting period of the holder of the multiplex licence.

(5) Where, in the case of any multiplex service, the first accounting period of the holder of the multiplex licence throughout which the holder of the digital additional services licence provides a digital additional service for broadcasting by means of the multiplex service (“the first period”) has not yet ended, then for the purposes of subsection (3) the share of multiplex revenue attributable to the holder of the digital additional services licence in relation to that multiplex service for the relevant accounting period shall be taken to be the amount which the Commission estimate to be the share of multiplex revenue attributable to him for the first period.

(6) The Commission shall not serve on any person such a notice as is mentioned in subsection (1)(a) or (b) unless they have given him a reasonable opportunity of making representations to them about the matters complained of.

(7) Where a licence is due to expire on a particular date by virtue of a notice served on any person under subsection (1)(b), the Commission may, on the application of that person, revoke that notice by a further notice served on him at any time before that date, if they are satisfied that, since the date of the earlier notice, his conduct in relation to the operation of the licensed service has been such as to justify the revocation of that notice.

(8) Subject to subsection (9), sections 40(1) to (4) and section 42 of the 1990 Act shall apply in relation to a digital additional services licence as they apply in relation to a Channel 3 licence.

(9) In its application in relation to a digital additional services licence, section 42 of the 1990 Act shall have effect—

(a) with the substitution for the reference in subsection (1)(a) to Part I of that Act of a reference to this Part, and

(b) with the omission of subsection (4) and of the reference to that subsection in subsection (6).

(10) It is hereby declared that any exercise by the Commission of their powers under subsection (1) in respect of any failure to comply with any condition of a digital additional services licence shall not preclude the exercise by them of their powers under section 40 of the 1990 Act in respect of that failure.

Digital broadcasting of services provided by independent analogue broadcasters

28 Provision for broadcasting of services provided by independent analogue broadcasters

(1) The Secretary of State shall exercise his powers under this section for the purposes of—

(a) facilitating the broadcasting of qualifying services by means of multiplex services licensed under this Part, and

(b) entitling any independent analogue broadcaster who in accordance with this section provides a qualifying service for broadcasting in digital form on a frequency to the use of digital capacity on that frequency.

(2) The Secretary of State shall, in assigning frequencies to the Commission under section 6, by direction to the Commission—

(a) designate one or two frequencies as frequencies to which this section applies, and

(b) specify in relation to each frequency so designated—

(i) the independent analogue broadcasters for whom digital capacity is to be reserved in accordance with this section,

(ii) the amount of digital capacity to be so reserved for each of them,

(iii) the times of day between which or days of the week on which such capacity is to be so reserved,

(iv) the area in the United Kingdom in which each of them is to be permitted to provide services, and

(v) the qualifying services which, subject to the provisions of this section, are intended to be broadcast on that frequency.

(3) The Secretary of State may by order—

(a) provide, in relation to any frequency to which this section applies—

(i) that any or all of the provisions of sections 7 to 16 and sections 18 and 19 are not to apply, or are to apply with specified modifications, and

(ii) that provisions of the order are to have effect in place of any or all of those provisions,

(b) provide for the Commission to include in any multiplex licence granted in respect of any such frequency such conditions as may be specified in, or determined by them under, the order, including conditions for securing the result specified in subsection (4),

(c) provide for the Commission to vary any licence under which the service specified in section 2(3) corresponding to the qualifying service (“the corresponding analogue service”) is provided so as to include such conditions relating to the broadcasting of the qualifying service as may be specified in, or determined by the Commission under, the order and to include those conditions in any other licence under which the corresponding analogue service is subsequently provided, and

(d) make such other provision for either of the purposes specified in subsection (1) as he considers appropriate.

(4) The result referred to in subsection (3)(b) is that, in consideration of the making, by any independent analogue broadcaster specified under subsection (2)(b)(i) in relation to the frequency concerned, of such payments as are from time to time agreed between him and the holder of the multiplex licence or (in default of agreement) determined by the Commission under the order, the holder of that licence will use the digital capacity specified under subsection (2)(b)(ii) for the broadcasting of services provided by that broadcaster.

(5) Where under subsection (2)(b) digital capacity is reserved only between particular times, on particular days or in a particular area, the reference in subsection (4) to broadcasting is a reference to broadcasting between those times, on those days or in that area.

(6) Without prejudice to the generality of section 200(2)(a) of the 1990 Act (which provides that orders may make different provision for different cases), an order under this section may make different provision for different frequencies.

(7) Any order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

29 The S4C digital service

(1) If the Welsh Authority provide S4C Digital, it shall be their duty—

(a) to provide it as a public service for disseminating information, education and entertainment,

(b) to ensure that all the programmes in Welsh which are broadcast on S4C are broadcast on S4C Digital at the same time, and

(c) to ensure that the programmes which are broadcast on S4C Digital but not on S4C maintain—

(i) a high general standard in all respects (and, in particular, in respect of their content and quality), and

(ii) a wide range in their subject matter, having regard both to the programmes as a whole and also to the days of the week on which, and the times of the day at which, the programmes are broadcast.

(2) Sections 57(4), 58(5), 59, 60 and 64 of the 1990 Act shall apply in relation to S4C Digital as they apply in relation to S4C.

(3) No payment shall be required by the BBC in respect of the broadcasting pursuant to subsection (1)(b) of programmes provided by them under section 58(1) of the 1990 Act.

(4) In this section “programme” does not include an advertisement.

30 The qualifying teletext service

(1) If the public teletext provider has notified the Commission under section 2(5) of his intention to provide a teletext service for broadcasting in digital form as a qualifying service, he shall submit to the Commission his proposals for providing that service in compliance with the requirements specified in subsection (3).

(2) The Commission shall give their consent to the provision of the service unless it appears to them that the proposed service would not comply with the requirements specified in subsection (3).

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

(a) that the service includes a sufficient amount of news items which are of high quality and deal with both national and international matters,

(b) that the service includes a sufficient amount of information which is of particular interest to persons living within different areas for which the service is provided, and

(c) that (taken as whole) the service includes a sufficient amount of information (other than news) which is calculated to appeal to a wide variety of tastes and interests.

(4) Where the Commission have given their consent under subsection (2), they shall vary the relevant licence held by the public teletext provider so as to include such conditions as appear to them to be appropriate—

(a) for imposing on the public teletext provider, in specified circumstances, an obligation to provide the qualifying teletext service, and

(b) for securing that the qualifying teletext service, if provided, accords with the proposals submitted under subsection (1);

and they may include those conditions in any other licence under which the analogue service is subsequently provided.

(5) Sections 6 to 12 of the 1990 Act (general provisions relating to services licensed under Part I of that Act) shall apply in relation to the qualifying teletext service as they apply in relation to the analogue service, but as if the reference in section 12(1)(b) of the 1990 Act to the Commission’s functions under Chapter II of Part I of that Act included a reference to their functions under this Part.

(6) In this section—

  • “the analogue service” means the service referred to in section 49(2) of the 1990 Act;

  • “the relevant licence” means the additional services licence (within the meaning of Part I of the 1990 Act) under which the analogue service is provided.

31 Advertisements included in qualifying services

Where an independent analogue broadcaster other than the Welsh Authority or the public teletext provider includes in a qualifying service advertisements which are not included in the corresponding analogue service (within the meaning of section 2(2)), sections 8 and 9 of the 1990 Act shall have effect as if the provision of the advertisements constituted the provision of a service licensed under Part I of the 1990 Act.

Miscellaneous and supplemental

32 Digital broadcasting of Gaelic programmes

(1) The Secretary of State may by order provide for the Commission to include in any multiplex licence granted in respect of one frequency to which section 28 applies such conditions relating to the broadcasting of programmes in Gaelic for reception wholly or mainly in Scotland as may be specified in, or determined by them under, the order.

(2) The Secretary of State may by order require the holder of a multiplex licence (“the holder”), in complying with any such conditions, to broadcast programmes in Gaelic supplied by each of the persons mentioned in subsection (4) (“the suppliers”) amounting to such minimum number of hours (if any) of transmission time per year as may be specified in the order in relation to that supplier.

(3) For the purpose of enabling the holder to comply with any such conditions and any obligation imposed by virtue of subsection (2), it shall be the duty of each supplier to provide the holder, free of charge, with such programmes in Gaelic which have been broadcast by the supplier as the holder may request.

(4) The suppliers are—

(a) the BBC,

(b) the Channel Four Television Corporation,

(c) any holder of a Channel 3 licence to provide a regional Channel 3 service (within the meaning of Part I of the 1990 Act) for reception wholly in Scotland, and

(d) such other persons providing television broadcasting services as may be specified by order by the Secretary of State.

(5) Subsection (3) shall not apply in relation to any programme first broadcast by the supplier concerned—

(a) before 1st January 1993, or

(b) in the period beginning on 1st January 1993 and ending on 31st March 1997, if the supplier has no right to broadcast it again or has such a right but is not entitled to transfer it to the holder.

(6) The holder may broadcast any programme supplied by virtue of subsection (3) on one occasion only.

(7) The holder shall consult Comataidh Craolaidh Gaidhlig and the suppliers about—

(a) the quantity of programmes likely to be requested by the holder from each supplier by virtue of subsection (3), and

(b) the schedules proposed for the broadcast by the holder of programmes supplied by virtue of that subsection,

and shall have regard to any comments made as a result of such consultation.

(8) Any order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(9) In this section “Gaelic” means the Gaelic language as spoken in Scotland.

33 Review of digital television broadcasting

(1) For the purpose of considering for how long it would be appropriate for television broadcasting services to continue to be provided in analogue form, the Secretary of State—

(a) shall keep under review the extent of—

(i) the provision in the United Kingdom of multiplex services,

(ii) the availability in the United Kingdom in digital form of the services specified in section 2(3), S4C Digital, the qualifying teletext service, and the television broadcasting services of the BBC, and

(iii) the ownership or possession in the United Kingdom of equipment capable of receiving the services referred to in sub-paragraph (ii) when broadcast or transmitted in digital form,

and the likely future extent of such provision, such availability and such ownership or possession, and

(b) shall, on or before the fourth anniversary of the day on which the first multiplex licence is granted under section 8, and at such time or times thereafter as he thinks fit, require the Commission and the BBC to report to him on the matters referred to in paragraph (a).

(2) If the Commission or the BBC are required to submit a report under subsection (1)(b), they shall submit the report within twelve months of the date of the requirement.

(3) Before making any report under subsection (1)(b), the Commission shall consult—

(a) the holders of all multiplex licences,

(b) the holders of digital programme licences who are providing digital programme services which are being broadcast,

(c) such other persons providing services licensed by the Commission under this Part or Part I or II of the 1990 Act as the Commission think fit, and

(d) the Welsh Authority;

and the Commission shall include in their report a summary of representations made to them by the persons consulted.

(4) For the purpose mentioned in subsection (1), the Secretary of State shall, on requiring reports under subsection (1)(b), consult—

(a) such persons appearing to him to represent viewers as he thinks fit, and

(b) such other persons as he thinks fit,

in connection with the matters referred to in subsection (1)(a) and also, if the Secretary of State thinks fit, as to the likely effects on viewers of any television broadcasting service ceasing to be broadcast in analogue form.

(5) In this section “television broadcasting service” has the same meaning as in Part I of the 1990 Act.

34 Promotion of equal opportunities and fair treatment

(1) Any multiplex licence or digital programme licence shall include conditions requiring the licence holder—

(a) to make arrangements for promoting, in relation to employment by him, equality of opportunity between men and women and between persons of different racial groups,

(b) to make arrangements for promoting, in relation to employment by him, the fair treatment of disabled persons, and

(c) to review those arrangements from time to time.

(2) In subsection (1) “racial group” has the same meaning as in the [1976 c. 74.] Race Relations Act 1976, and “disabled person” has the same meaning as in the [1995 c. 50.] Disability Discrimination Act 1995.

35 Enforcement of licences held by BBC companies

Where the Commission—

(a) give a direction to a BBC company under section 40(1) of the 1990 Act as applied by section 23(8) or 27(8),

(b) serve a notice on a BBC company under any provision of section 17, 23 or 27, or

(c) receive any representations from a BBC company under section 17(4), 23(6) or 27(6) or under section 42 of the 1990 Act as so applied,

the Commission shall send a copy of the direction, notice or representations to the Secretary of State.

36 Power to vary amount of financial penalties

(1) The Secretary of State may by order amend any of the provisions specified in subsection (2) by substituting a different sum for the sum for the time being specified there.

(2) The provisions referred to in subsection (1) are—

  • section 11(5)(a);

  • section 17(2)(a);

  • section 23(2)(a); and

  • section 27(2)(a).

(3) An order under subsection (1) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

37 Computation of multiplex revenue

Part I of Schedule 1 (which contains provisions relating to the computation of multiplex revenue for the purposes of this Part) shall have effect.

38 Certain receipts of Commission to be paid into Consolidated Fund

(1) Where, in respect of any licence granted under this Part, the Commission receive any of the amounts specified in subsection (2), that amount shall not form part of the revenues of the Commission but shall—

(a) if the licence is for the provision of a service for any area in Great Britain, be paid into the Consolidated Fund of the United Kingdom,

(b) if the licence is for the provision of a service for any area in Northern Ireland, be paid into the Consolidated Fund of Northern Ireland, or

(c) in any other case, be paid into whichever of those Funds the Commission consider appropriate or into both of those Funds in such proportions as the Commission consider appropriate.

(2) The amounts referred to in subsection (1) are amounts payable to the Commission by virtue of any of the following provisions—

  • section 11(5);

  • section 13(1);

  • section 17(1);

  • section 23(1);

  • section 27(1).

(3) Subsection (1) shall not be construed as applying to any amount which is required by the Commission for the making of an adjustment in respect of an overpayment made by any person.

(4) Any amount payable by any person to the Commission under or by virtue of this Part shall be recoverable by them as a debt due to them from that person; and, where any amount is so payable by a person as the holder of a licence granted under this Part, his liability to pay it shall not be affected by his licence ceasing (for any reason) to be in force.

(5) The Commission shall, in respect of each financial year, prepare an account showing—

(a) all such amounts falling within subsection (1) as have been received by them, and

(b) the sums paid into the Consolidated Funds of the United Kingdom and Northern Ireland respectively under that subsection in respect of those amounts,

and shall send that account to the Comptroller and Auditor General not later than the end of the month of November following the financial year to which it relates; and the Comptroller and Auditor General shall examine, certify and report on the account and lay copies of it, together with his report, before each House of Parliament.

39 Interpretation of Part I

(1) In this Part—

  • “ancillary service” has the meaning given by section 24(2);

  • “a Channel 3 licence” has the same meaning as in Part I of the 1990 Act and “a Channel 3 service” means a regional or national Channel 3 service (within the meaning of that Part);

  • “Channel 4”, “Channel 5” and “a Channel 5 licence” have the same meaning as in Part I of the 1990 Act;

  • “the Commission” means the Independent Television Commission;

  • “digital additional service” has the meaning given by section 24(1), and “digital additional services licence” means a licence to provide such services;

  • “digital programme service” has the meaning given by section 1(4), and “digital programme licence” means a licence to provide such services;

  • “independent analogue broadcaster” has the meaning given by section 2(1);

  • “licence” means a licence under this Part, and “licensed” shall be construed accordingly;

  • “multiplex service” has the meaning given by section 1(1), and “multiplex licence” means a licence to provide such a service;

  • “public teletext provider” has the meaning given by section 2(6);

  • “qualifying service” has the meaning given by section 2(2);

  • “qualifying teletext service” means the public teletext service provided by the public teletext provider for broadcasting in digital form as a qualifying service;

  • “S4C” and “on S4C” have the same meaning as in Part I of the 1990 Act;

  • “S4C Digital” means the service referred to in section 57(1A)(a) of the 1990 Act, and “on S4C Digital” means in that service;

  • “technical service” has the meaning given by section 24(3).

(2) Where the person who is for the time being the holder of any licence (“the present licence holder”) is not the person to whom the licence was originally granted, any reference in this Part (however expressed) to the holder of the licence shall be construed, in relation to any time falling before the date when the present licence holder became the holder of it, as including a reference to a person who was previously the holder of the licence.