Summary
1.1 This statement sets out the decisions we are required to take in inviting two television multiplex licensees to apply for renewal of their licences.
1.2 Two digital terrestrial television multiplex licences held under the Broadcasting Act 1996 (‘the Act’) expire in 2010. These are the licences for Multiplex A and Multiplex 2. Under the provisions of the Act, the licensees may apply to renew their licences for one further period of 12 years. The window for the current licence holders to make an application under this provision opened at the end of 2006.
1.3 As part of the renewal process, Ofcom has to decide whether to require certain licence changes under its discretionary powers. However, we have decided that it is not necessary to vary the licences in this respect. In particular, this statement explains that we have decided not to require any changes in relation to:
- the coverage of services provided under the licence; or
- the licensees’ obligations in regard to the acquisition of digital equipment by households.
1.4 We have also decided not to set an Additional Payments rate for these licences. This is in view of our intention from the end of 2014 to introduce Administered Incentive Pricing (AIP) for the spectrum the licensees use.
1.5 Under the Act the consent of the Secretary of State for Culture Media and Sport is required for us to implement these decisions. The Secretary of State has now confirmed by letter that he consents to our proposed approach. He has also confirmed that he will not use his discretionary powers to direct us to set a particular Additional Payments Rate.
1.6 This statement follows on from the public consultation we published on 22 November 2007 entitled Television Multiplex Licence Renewals. The consultation set out our proposals for the renewal of the licences of Multiplexes A and 2, and asked stakeholders for their views. It aimed to inform stakeholders about our thinking and to allow thorough consideration of the proposals before we formally invited applications.
1.7 We received four replies to the consultation, three of which were confidential. The responses were supportive and largely agreed with our proposals.
Next steps
1.8 We will write to the licence holders for Multiplex A and Multiplex 2 to notify them of the renewal process and inviting them to apply to renew their licences. We will also confirm that we intend to renew the licences on their existing terms.
1.9 Provided that the applications to renew the licences are satisfactory in terms of the Act, we expect to renew the licences for a period of 12 years.