The Media Ownership (Radio and Cross-media) Order 2011

EXPLANATORY NOTE

(This note is not part of the Order)

This order is made under section 402 of, and Schedule 14 to, the Communications Act 2003 (“the Schedule”). It makes changes to the framework of restrictions on media ownership, by amending the Schedule and an earlier Order made under these same provisions, the Media Ownership (Local Radio and Appointed News Provider) Order 2003 (S.I. 2003/3299)(“the 2003 Order”). In respect of all but one of these changes, the changes give effect to recommendations made by Ofcom in its report of a review of the media ownership framework conducted in pursuance of its duty under section 391 of the Communications Act 2003, dated 17 November 2009. The remaining change, the revocation of article 9 of the 2003 Order, is made following consultation with Ofcom as required by paragraph 17(1) of the Schedule. As is also required by paragraph 17(1) of the Schedule, Ofcom has been consulted regarding the extension of a number of the provisions of this Order to the Isle of Man.

Article 3 of this Order repeals paragraph 1(2) and Part 2 (paragraphs 7 to 10) of the Schedule. The following restrictions are thereby removed: the restriction at paragraph 1(2) of the Schedule (prohibition on a person holding a licence to provide a regional Channel 3 service where that person also runs a local newspaper (or local newspapers) with a local market share of 20 per cent or more in the coverage area of the service); the restriction at paragraph 7 of the Schedule (restriction on holding more than one national radio multiplex licence); the restriction at paragraph 8 of the Schedule (restriction on holding more than one local radio multiplex licence in the circumstances described in that paragraph). The definition at paragraph 9 of the Schedule (connected persons rules etc) and the Secretary of State’s power to repeal or otherwise modify any of the restrictions in Part 2 (at paragraph 10 of the Schedule) are no longer required due to the removal of the restrictions at paragraphs 7 and 8 of the Schedule, and are consequently removed.

Article 4 of this Order revokes Part 2 and Part 3 of the 2003 Order. Part 2 (articles 4 to 9) of the 2003 Order contains limits on the number of local sound broadcasting (analogue radio) licences that a person may hold in the circumstances described there. Article 4 of this Order removes all of those limits by revoking Part 2 of the 2003 Order in its entirety.

Part 3 (articles 10 to 12) of the 2003 Order contains limits on the number of local digital sound programme services that a person may provide. Article 4 of this Order removes all of those limits by revoking Part 3 of the 2003 Order in its entirety.

In consequence of the changes made by articles 3 and 4 of this Order, amendments are needed to the Schedule, the Broadcasting Act 1990, the Broadcasting Act 1996, the 2003 Order and the Communications (Isle of Man) Order 2003.

Articles 5 to 9 of this Order make consequential amendments to the Schedule as follows.

In paragraph 3 (national and local newspapers and their respective national and local market shares) the definition of “local market share” in paragraph 3(5) is no longer needed there and is repealed. Related provisions about the calculation of “market share” in paragraph 3(6) and 3(7) are amended in consequence of this, such that they will concern only the calculation of national market share.

Paragraph 4 (construction of references to running a newspaper) is amended so that it no longer contains reference to a “local newspaper”.

Paragraph 5 (coverage area for a Channel 3 service) gives a definition of the coverage area for a Channel 3 service on which the restriction at paragraph 1(2) of the Schedule relies. The definition is not used anywhere else in the Schedule and is therefore no longer necessary. Paragraph 5 is therefore repealed.

Wording is added to paragraph 13(4) of the Schedule to reflect the changes made to the Broadcasting Act 1990 set out below.

Articles 10 to 12 of this Order make consequential amendments to the Broadcasting Act 1990. In section 5 of that Act (restrictions on holding of licences under Part 1), section 5(6A), which relies on the definition of “local market share” at paragraph 3 of the Schedule, is amended to reflect that this definition is no longer to be found there. Also at section 5, new subsections (6AA) to (6AD) insert the provisions relating to the calculation of local market share which have been removed from paragraph 3 of the Schedule. While those provisions were no longer necessary as far as the Schedule was concerned, they remain necessary in order to enable Ofcom to make a calculation of “local market share”. Re-inserting the provisions here ensures that this is possible. Section 88 of that Act (restrictions on holding of licences under Part 3) is also amended to reflect this change.

Articles 13 to 15 of this Order make consequential amendments to the Broadcasting Act 1996. Sections 5 (restrictions on holding of licences under Part 1) and 44 (restrictions on holding of licences under Part 2) of that Act are amended to reflect that the provisions to be relied on in relation to the definition and calculation of local market share are now to be found at section 5 of the Broadcasting Act 1990.

Articles 16 to 18 of this Order make consequential amendments to the 2003 Order by removing provisions which are redundant as a consequence of the substantive amendments made by article 4.

Article 2 of this Order extends certain of the provisions of this Order to the Isle of Man, such that the following will have effect there: article 3 of this Order (the repeal of paragraph 1(2) and Part 2 of the Schedule, except as far as that repeal relates to paragraph 8 of the Schedule); the consequential amendment of paragraphs 3, 4 and 5 of the Schedule (at articles 5 to 8 of this Order); the consequential amendment of sections 5 and 88 of the Broadcasting Act 1990 (at articles 10 to 12 of this Order); and the consequential amendment of sections 5 and 44 of the Broadcasting Act 1996 (at articles 13 to 15 of this Order). As far as those repeals and consequential amendments relate to the Communications Act 2003, further consequential amendments are needed to the Order in Council which extended the Schedule to the Isle of Man, and article 19 of this Order revokes paragraph 70(c) and (d) of Schedule 2 to the Communications (Isle of Man) Order 2003 accordingly.