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Foreword

1.1 Ofcom is required under the Broadcasting Act 1990 ('1990 Act') and Broadcasting Act 1996 ('1996 Act') to draw up, and from time to time review, a statement setting out the principles to be followed in determining the additional payment due in respect of Qualifying Revenue, which is paid annually by Independent National Radio (INR) and Additional Service (AS) licensees. There is a similar requirement under the 1996 Act to draw up a statement of principles for the additional payment due in respect of Multiplex Revenue which relates to the National Radio Multiplex (NRM) licence.

1.2 In November 1998 Ofcom’s predecessor, the Radio Authority, published the Computation of Qualifying Revenue Statement of Principles: Broadcasting Acts 1990 and 1996 (Revision 2 – November 1998), which sets out the current process for calculating and charging Qualifying Revenue additional payments.

1.3 This statement is published by Ofcom in order to confirm its interpretation of Qualifying Revenue and Multiplex Revenue, the methodology for calculating Qualifying and Multiplex Revenue additional payments and to set out more clearly the administrative arrangements. Additionally it makes necessary consequential amendments to the previous statement as a result of the Communications Act 2003.

1.4 The Department for Culture, Media and Sport and the Treasury have been consulted by Ofcom on this statement. The statement may be revised from time to time, after consultation with the Department for Culture, Media and Sport and the Treasury.

1.5 The contents of this statement are provided as guidance only. For the avoidance of doubt the relevant sections of the 1990 Act, 1996 Act and Communications Act will take precedence. The statutory provisions contained in the Acts are, in some cases, drawn in broad terms. References to the principal definitions used in the Acts can be found at Annex 1.

Outline of the statement

1.6 Section 2 provides the background to this statement, including an outline of the relevant statutory requirements.

1.7 Section 3 sets out the definitions of Qualifying Revenue and Multiplex Revenue and Ofcom’s principles for assessing additional payments.

1.8 Section 4 explains the administrative arrangements that are in place for making the additional payments and the setting of financial penalties.

The full document is available below:

• Computation of Qualifying Revenue and Multiplex Revenue for Radio Licensees [pdf]
  Full Print Version

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