In 2002, Ofcom awarded licences under the Broadcasting Act 1996 (the 1996 Act and the BA Licences) for the operation of digital television multiplexes known as Multiplexes C and D to Arqiva Services Limited (Arqiva). Those licences are due to expire in November 2014 and Ofcom has received applications from Arqiva to renew the Licences for a further 12 year period. This document sets out our proposals in relation to those applications for consultation. Following consultation, Ofcom will set out its position which is subject to the consent of the Secretary of State for Culture, Olympics, Media and Sport before any renewal or refusal to renew may take effect.
Ofcom is proposing to renew the BA Licences for a further 12 year term commencing upon the expiry of the existing term. Ofcom does not propose to require any additional coverage obligations in the renewed Licences but we propose to remove licence conditions relating to the marketing of the digital terrestrial television (DTT) platform and the promotion of the acquisition by households of digital television receiving equipment. Ofcom does not consider that, following digital switchover which will have occurred by the time that the renewed BA Licences come into being, there is any need to include conditions relating to the marketing of the DTT platform. In light of our duty to review regulatory burdens and to remove unnecessary regulation, we are therefore proposing to remove those requirements.
We are also proposing not to require any additional payments to be made to Ofcom in respect of either Licence. Each Licence has an associated licence to use spectrum issued under the Wireless Telegraphy Act 2006 (WTA Licence) and, in light of our policy to introduce charges for those licences from the end of 2014, we do not propose to requirement a payment under the BA Licences as well. In reaching that decision, we are also mindful of the fact that, in deciding to renew the licences for Multiplexes A and 2, we did not require any Additional Payments from those licensees.
We welcome responses on our proposals.