Home > Consultations > Consultation Documents > Digital replacement licences > Digital replacement licences

Consultation published: 14|09|2004
Consultation closes: 25|10|2004

Summary

1. This consultation seeks views on the digital replacement broadcasting licences which Ofcom must offer to Channels 3, 4 and Channel 5 and to Public Teletext later this year. At present these broadcasters hold licences which are primarily analogue. The new licences must be issued no later than 29 December 2004. The closing date for responses to this consultation is 25 October 2004.

2. After that date Ofcom aims for the timetable for issue of the replacement licences to be as follows:

• week commencing 15 November: offer digital broadcasting licences
• week commencing 29 November: closing date for acceptance of offers
• week commencing 13 December: issue new licences.

Statutory requirements

3. Section 215 of the Communications Act 2003 (the Act ) requires Ofcom to offer to replace the current analogue broadcasting licences for Channel 3 and Channel 5 with digital broadcasting licences to take effect from 29 December 2004. Section 221 of the Act sets out the same requirement in respect of Public Teletext. Offers of digital replacement licences (DRLs) must be made to all sixteen Channel 3 licensees, Channel 5 and to Public Teletext.

4. The procedure for replacing Channel 4's existing licence is different. Ofcom prepares a draft of Channel 4's DRL and the replacement licence takes effect on the date Government brings into force sub-section 231(1) of the Act. The initial expiry date of each DRL shall be 31 December 2014.

5. The DRLs will be granted in accordance with the relevant section of the Act and under the provisions of Part 1 of the Broadcasting Act 1990 (the "1990 Act"). This means that Ofcom has all the necessary powers under the 1990 Act to include new and additional conditions in the DRLs which it considers appropriate.

Focus of Consultation

6. The DRL conditions related to digital switchover are the most significant part of this consultation on which Ofcom is especially concerned to receive comments.

DRL conditions relating to digital switchover

7. Ofcom proposes to include in the DRLs certain conditions relating to digital switchover (DSO). Except where otherwise indicated the conditions proposed by Ofcom are broadly the same for all DRLs. Those who wish to respond to this consultation should refer to the main body of the consultation document and the draft DRLs for further detail.

Channels 3 and 5

8. Provision of the Channel 3 and 5 services

• Ofcom proposes to oblige Channel 3 and 5 licensees to achieve a clearly defined level of coverage to be met by their digital service as from the date of digital switchover (Condition 2(2)(b) of the draft DRL ). They would be under a duty to procure coverage in digital terrestrial form of their service equivalent to, or substantially the same as, the analogue coverage currently achieved by transmission from a certain named number of transmission stations listed in Part 5 of the Annex.

9. Digital switchover: cooperation and coordination

• Licensees would be under a duty to co-operate with everyone involved in the administration, organisation or implementation of digital switchover in the UK (see9 Part 2 of the Annex for the respective DRLs - paragraph 9 (Regional Channel 3 DRL); paragraph 7 (National Channel 3 DRL); and paragraph 8 Channel 5 DRL).

10. Annual report and information

• It is proposed the licensee should be under a specific duty to provide Ofcom with certain information about DSO (see Part 2 of the Annex for the respective DRLs - paragraph 10 (Regional Channel 3 DRL); paragraph 8 (National Channel 3 DRL); and paragraph 9 (Channel 5 DRL). This would include an Annual Report giving details of compliance with licence provisions related to digital switchover, and of plans to fund the roll out of transmission equipment and/or infrastructure relating to DSO.
  11. Switchover marketing and communications
• Part 2 of the Annex for the respective DRLS (paragraph 11 (Regional Channel 3 DRL); paragraph 9 (National Channel 3 DRL); and paragraph 10 Channel 5 DRL) obliges the licensee to use his best endeavours to ensure that all viewers who receive his analogue service are made fully aware of the switchover date in his region at least two years in advance and are given all the necessary information as to how they can continue to receive the service after switchover.

12. Digital switchover date and timetable

• Ofcom believes that the inclusion of a digital switchover date, and a timetable for converting transmission stations from analogue to digital television, in the DRLs would help extend digital penetration in the UK and help allow full digital switchover to be achieved by whatever date the Government selects.
• The proposal is to include 31 December 2012 in the DRLs as a backstop date by which all licensees shall be obliged to cease broadcasting their analogue service.
• The holder of the DRL would be obliged to procure the roll-out of digital terrestrial television (DTT) through the conversion from analogue to digital television broadcasting of all the transmission stations listed in Part 5 of the Annex to all Channel 3 DRLs (Part 4 in the Channel 5 DRL) against a set timetable (Part 3 of the Annex to Channel 3 and 5 DRLs). In total this would impose a duty on all holders of DRLs to convert to digital all 1154 current analogue transmitters.
• It would be an obligation on the licensee to ensure that this timetable is met. The list of stations and dates would naturally vary from licence to licence, reflecting the current list of transmission stations and the sequence of regional switchover.

Channel 4

13. Provision of the Channel 4 service and other DSO-related conditions

• Ofcom considers it appropriate to include in the Channel 4 DRL conditions related to digital switchover parallel to those which it proposes to place in the Channel 3 and Channel 5 DRLs.
• The proposed digital coverage condition is slightly different in the case of Channel 4 however. Channel 4 is not, for example, currently under a statutory obligation to provide its service in Wales. However, Ofcom proposes to extend Channel 4's coverage obligation to the whole of Wales from switchover.

Channel 5

14. Provision of the Channel 5 service and other DSO-related conditions

• Ofcom proposes to insert in the Channel 5 DRL conditions related to digital switchover parallel to those which it proposes to place in the Channel 3 DRLs.
  

Public Teletext

15. Provision of Public Teletext service

• Ofcom has based Condition 2 of the draft Public Teletext DRL concerning analogue and digital coverage on the equivalent condition in the other DRLs, but amended it as appropriate to reflect the difference in statutory background.

16. Other DSO-related conditions

• Other provisions relating to DSO in the Public Teletext DRL would be the same as are proposed for the other DRLs.
  Refusal of DRL offer

17. If the holder of the current analogue licence refuses the DRL offered, its existing licence will automatically cease to have effect from a date to be determined by Ofcom. Currently Ofcom thinks it is likely to select a date or dates between May and November 2005.

18. If any Channel 3 licensee, Channel 5 or Public Teletext wishes to accept Ofcom's separate offer to bring forward the present end date of their current licence in order to have the option of an earlier determination of their financial terms, they must inform Ofcom in writing no later than the week commencing 29 November 2004 and confirm at the same time their consent to the necessary variation to their licence. The relevant analogue licence must be varied before grant of the DRL.

Regulatory impact assessment

19. A regulatory impact assessment is at section 8 of this document. Amongst other issues, it considers the advantages and disadvantages of Ofcom's proposal to oblige DRL holders to roll-out DTT to 1154 transmission sites.

The full text of this consultation is available in PDF format via the link at the top right of this page.

• Digital replacement licences to be offered to channels 3, 4, 5 and public teletext [pdf]

Back to top