Summary
The requirements upon Ofcom
1.1 The ITV Networking Arrangements (the ‘NWA’) are a set of arrangements between ITV Network Ltd (‘ITV Network’) and the 15 regional Channel 3 licensees. These 15 licensees are currently under the control of ITV plc, SMG plc, Ulster Television plc (‘UTV’) and Channel Television Ltd (‘Channel’).
1.2 The NWA, which currently comprise five main documents, are intended to coordinate the provision of a national television service that is capable of competing effectively with other broadcasters in the UK .
1.3 Ofcom has a statutory duty to carry out from time to time a general review of the NWA, under section 293 of the Communications Act 2003 (the ‘Act’). Essentially, such a review is intended to assess:
- Whether regional Channel 3 services can be a nationwide system that can compete effectively with other UK television programme services; and
- The impact of the NWA on competition
1.4 In addition, Ofcom is also required to consider the effect of the arrangements on the ability of the regional Channel 3 licensees to maintain the quality and range of regional programmes and other programmes contributing to the regional character of the services.
1.5 Ofcom must conduct such a review no more than a year after the previous review. Ofcom published its final recommendations on the 2005 NWA review in Autumn 2005. Following a consultation document issued on 28 November 2006, this statement concludes the 2006 review of the NWA.
Ofcom’s conclusions
1.6 Ofcom’s conclusions are as follows:
- For the current review of the NWA, Ofcom considers that there will be a need to update the Network Centre Code of Practice to take into account changes to Ofcom’s Guidance to broadcasters for drawing up Codes of Practice relating to the commissioning of independent producers. Following on from Ofcom’s Television Production Sector Review (‘TPSR’), Ofcom is consulting separately on revised Guidance to broadcasters. Ofcom is not, therefore, making specific recommendations in this document as to how the Network Centre Code of Practice needs to change at this stage, simply stating that it will need to be amended in the light of that revised Ofcom guidance and the new media rights agreements. The Network Programme Licence (‘NPL’) and Tri-partite Agreement (‘TA’) will also need to be amended in the light of the changes made to the Network Centre Code of Practice;
- Ofcom considers that no other changes are necessary to the NWA as part of the 2006 Review because there are no other significant changes to the operation of the NWA to take into account; and,
- Going forward, Ofcom intends to streamline the process of future NWA reviews using a more informal consultation process where the proposed changes are not material. This will comply with the legal requirement for frequent reviews of the NWA whilst minimising the burden on stakeholders. Ofcom will continue to conduct formal consultations where it considers it appropriate to do so and, in particular, where changes are proposed to the NWA which are considered material. Ofcom also expects to consider in the 2007 NWA Review the scope to maintain the NWA obligations in a less specific way by removing at least the NPL and TA from the set of documents comprising the NWA.
1.7 Ofcom confirms that although it is recommending changes to the Network Centre Code of Practice, NPL and TA, the formal approval process required need not delay the commissioning of programmes based on the new agreement with Pact on new media rights. To delay such commissioning would neither be in the commercial interests of any party, nor in the interests of consumers who wish to receive the new services involved. Ofcom therefore considers that, at this stage, Ofcom would not object to ITV Network commissioning programmes on the basis of the revised NWA prior to formal approval being obtained. However, in the event that Ofcom is made aware of any issues arising from such a situation, Ofcom may decide to require commissioning to revert to taking place on the basis of the Network Centre Code of Practice, NPL and/or TA in place at the current time.