Computation of qualifying revenue and multiplex revenue for radio licensees
Published 26 October 2006
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 Ofcoms 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.
Under the terms of the 1990 Act, Ofcom is required to draw up, and from time to time review, a statement setting out the principles to be followed in ascertaining the ‘qualifying revenue’ of certain of its licensees for the purposes of any provision of Part I or Part II of the 1990 Act.
The 1996 Act extends this requirement to ‘multiplex revenue’. Specifically, Ofcom must draw up a statement setting out the principles to be followed in ascertaining the multiplex revenue in relation to a licence holder for the purposes of section 14 of the 1996 Act, and the share of multiplex revenue attributable to a person in relation to any multiplex service for the purposes of any provision of Part I of 1996 Act.
The Third Edition of the Statement of Principles was a combined statement to meet both these statutory requirements and the Fourth Edition simplified the administrative procedures for the collection of additional payments from licensees and removed procedures in respect of the Channel 4 Support Scheme, which ceased in 1998. The Fifth Edition clarifies the interpretation of Qualifying Revenue, as defined in the 1990 Act, as it applies to the Digital Replacement Licences, sets out more clearly relevant administrative arrangements and makes various consequential amendments following enactment of the Communications Act.
Qualifying revenue and multiplex revenue for television licensees (PDF, 113.8 KB) - 16 Dec 2004
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.
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.
Qualifying revenue and multiplex revenue for radio licensees (PDF, 222.6 KB) - 26 Oct 2006