Statutory Instruments
BROADCASTING
Made
9th May 1991
Coming into force
10th May 1991
Whereas a draft of this Order has been approved by resolution ofeach House of Parliament;
Now, therefore, in exercise of the powers conferred upon me by theprovisions of the Broadcasting Act 1990(1) set out in article 1(3), I hereby make the followingOrder:
1.—(1) This Order may be cited as the Broadcasting (Restrictions on theHolding of Licences) Order 1991 and shall come into force on the dayafter the day on which it is made.
(2) In this Order—
(a)“the Act” means the Broadcasting Act 1990; and
(b)unless the context otherwise requires, any reference to an articleor Part is to an article or Part of this Order, and any reference in anarticle to a paragraph is to a paragraph of that article.
(3) This Order is made in exercise of the powers conferred by section200(2) of, and the following provisions of Schedule 2 to, the Act:
(a)in Part III—
(i)paragraph 2(3)(b) and (4),
(ii)paragraph 4,
(iii)paragraph 5(3)(b),
(iv)paragraph 9, and
(v)paragraph 10;
(b)in Part IV—
(i)paragraph 2(5)(c) and (e),
(ii)paragraph 3(5)(c) and (e), and
(iii)paragraph 5;
(c)Part V.
(4) Without prejudice to its earlier revocation, article 4 shall ceaseto have effect in relation to a licence for an area specified in any ofsub-paragraphs (a), (b), (c) or (d) of paragraph (2) when licences forall the areas specified in that sub-paragraph have been granted.
2.—(1) For the purposes of articles 3, 4, 5, 12 and 13, a person shall betreated as holding a licence if the licence is held by a personconnected with him.
(2) Any restrictions on participation imposed on the holder of a licenceby articles 5 and 13 shall apply to him as if he and every personconnected with him were one person.
3.—(1) In addition to the limits on the holding of licences to provideregional Channel 3 services specified in paragraph 2(1) of Part III ofSchedule 2 to the Act (no person to hold more than two licences forregional Channel 3) and article 4 a person shall not at any time holdtwo licences to provide regional Channel 3 services if each of them isprovided for one of the areas specified in paragraph (3).
(2) The areas specified in paragraph (3) and article 4(2) are areas ofthe United Kingdom in respect of which the Independent TelevisionCommission have determined that a regional Channel 3 service is to beprovided.
(3) The areas referred to in paragraph (1) are—
(a)Central Scotland;
(b)East, West and South Midlands;
(c)East of England;
(d)London;
(e)North-West England;
(f)South and South-East England;
(g)Wales and West of England; and
(h)Yorkshire.
4.—(1) In addition to the limits on the holding of licences to provideregional Channel 3 services specified in paragraph 2(1) of Part III ofSchedule 2 to the Act and article 3 a person shall not at any time holdtwo licences to provide regional Channel 3 services if they are for anyof the combinations of areas specified in paragraph (2).
(2) The combinations referred to in paragraph (1) are—
(a)Borders and Isle of Man and—
(i)Central Scotland,
(ii)North East England, or
(iii)North West England;
(b)North Scotland and Central Scotland;
(c)North-East England and Yorkshire;
(d)South-West England and—
(i)South and South-East England, or
(ii)Wales and West of England.
5.—(1) A person who is the holder of licences to provide two regionalChannel 3 services (in accordance with paragraph 2(1) of Part III ofSchedule 2 to the Act and articles 3 and 4) shall not be a participantwith more than a 20% interest in a body corporate which is the holder of another licence to provide a regional Channel 3 service.
(2) Where such a person as is mentioned in paragraph (1) is aparticipant with more than a 5% interest in a body corporate which isthe holder of another licence to provide a regional Channel 3 service(but, in accordance with that paragraph, is not a participant with morethan a 20% interest in it), he shall not be a participant with more than a 5% interest in any other such body corporate.
6.—(1) A person who is—
(a)the holder of a licence to provide a regional Channel 3 service;and
(b)a participant with more than a 20% interest in a body corporatewhich is the holder of a licence to provide another such service,
shall not be a participant with more than a 20% interest in anyother body corporate which is the holder of a licence to provide aregional Channel 3 service.
(2) Where such a person as is mentioned in paragraph (1) is aparticipant with more than a 5% interest in a body corporate which isthe holder of a licence to provide a regional Channel 3 service (but, inaccordance with that paragraph, is not a participant with more than a20% interest in it), he shall not be a participant with more than a 5% interest in any other such body corporate.
7.—(1) A person who is the holder of a licence to provide a nationalChannel 3 service shall not be a participant with more than a 20%interest in a body corporate which is the holder of another licence toprovide a national Channel 3 service.
(2) Where such a person as is mentioned in paragraph (1) is aparticipant with more than a 5% interest in a body corporate which isthe holder of another licence to provide a national Channel 3 service(but, in accordance with that paragraph, is not a participant with morethan a 20% interest in it), he shall not be a participant with more than a 5% interest in any other such body corporate.
8.—(1) A person who is the holder of a licence to provide Channel 5 shallnot be a participant with more than a 20% interest in a body corporatewhich is the holder of another licence to provide Channel 5.
(2) Where such a person as is mentioned in paragraph (1) is aparticipant with more than a 5% interest in a body corporate which isthe holder of another licence to provide Channel 5 (but, in accordancewith that paragraph, is not a participant with more than a 20% interestin it), he shall not be a participant with more than a 5% interest inany other such body corporate.
9. Where a person, who is the holder of a licence to provide one of theservices mentioned in paragraph 5(1) of Part III of Schedule 2 to theAct, is a participant with more than a 5% interest in a body corporatewhich is the holder of a licence to provide a service falling withineither of the other two categories mentioned there (but, in accordancewith paragraph 5(2) of the said Part III, is not a participant with morethan a 20% interest in such a body corporate), he shall not be aparticipant with more than a 5% interest in any other such bodycorporate.
10.—(1) A person to whom this article applies shall not—
(a)if he is a participant with more than a 20% interest in two bodiescorporate which are the holders of licences to provide regional Channel3 services, be a participant with more than a 20% interest in a thirdsuch body corporate; nor
(b)if he is a participant with more than a 20% interest in a bodycorporate which is the holder of a licence to provide any of theservices mentioned in paragraph 1(2)(a) of Part III of Schedule 2 to theAct, be a participant with more than a 20% interest in a second suchbody corporate where either of the bodies is the holder of a licence toprovide a national Channel 3 service or Channel 5.
(2) Where such a person as is mentioned in paragraph (1) is aparticipant in the maximum number of bodies corporate permitted by thatparagraph, he shall not be a participant with more than a 5% interest in any other body corporate which is the holder of a licence to provide aChannel 3 service or Channel 5.
(3) A person to whom this article applies shall not, if he is aparticipant with more than a 5% interest in three bodies corporate which are the holders of licences to provide Channel 3 services or Channel 5,be a participant with more than a 5% interest in any other such bodycorporate.
(4) This article applies to a person who does not hold a licence toprovide a Channel 3 service or Channel 5 and has effect as if he andevery person connected with him were one person.
11.—(1) In addition to the limits on the holding of licences to providenational, local and restricted radio services set out in paragraph 2(1)of Part III of Schedule 2 to the Act (no person to hold more than onelicence for national radio, 20 licences for local radio or six licencesfor restricted radio services) there shall be the limits set out in thisPart; and for this purpose particular categories of radio services shallbe ascribed points according to the table set out below.
| Category of service | Points |
|---|---|
| National radio | 25 |
| Category A local radio | 15 |
| Category B local radio | 8 |
| Category C local radio | 3 |
| Category D local radio | 1 |
| Restricted radio service provided otherwise than for a particular event | 1 |
(2) For the purpose of the table a local radio service falls—
(a)into category A if the number of persons over the age of 15resident in the area for which the service is provided exceeds 4.5million;
(b)into category B if the number of such persons exceeds 1 million butdoes not exceed 4.5 million;
(c)into category C if the number of such persons exceeds 400,000 butdoes not exceed 1 million; and
(d)into category D if the number of such persons does not exceed400,000.
(3) In the case of a service provided on an amplitude modulated (AM)frequency the relevant number of points applicable to the service byvirtue of the table shall be reduced by one third.
(4) A service which, on the day on which the licence to provide it isgranted, falls into a particular category for the purposes of the tableshall continue to be regarded as falling into that category as long asany increase or decrease in the relevant number of persons over the ageof 15 (which would otherwise take the service outside that category)does not exceed 10%.
(5) A person who is a participant with more than a 20% interest in abody corporate which is the holder of a licence to provide a servicefalling within any of the categories set out in the table, but who doesnot control that body, shall, for the purposes of the limits set out inarticle 12, be treated as the holder of a licence to provide a serviceto which one half of the points (which would otherwise be applicable tosuch a service) are ascribed.
(6) In this Part references to the area for which a particular serviceis provided are references to the measured coverage area determined bythe Radio Authority for that service.
12.—(1) Subject to the following paragraphs, a person shall not at any timehold licences to provide national, local or restricted radio servicessuch that the total number of points applicable to such services,calculated in accordance with article 11, exceeds 15% of the totalnumber of points so calculated applicable to all such services inrespect of which licences have been granted and have not ceased to haveeffect.
(2) Such a person as is described in paragraph (1) may hold licencessuch that the total number of points applicable to the services to whichthey relate exceeds 15% of the total number of points applicable to allsuch services if the excess is solely attributable to a reduction in thenumber of points applicable to all such services.
(3) A person shall not at any time hold more than two licences toprovide local radio services falling into category A.
(4) Subject to paragraph (3), a person shall not at any time hold morethan six licences to provide local radio services falling into categoryA or B.
(5) Subject to paragraph (3), a person who holds a licence to provide anational radio service shall not at any time hold more than fourlicences to provide local radio services falling into category A or B.
13.—(1) Subject to paragraph (5), a person who holds a licence to provide alocal radio service shall not at any time hold a licence to provide alocal radio service to which this article applies; and, subject toparagraphs (3) and (4), such a person shall not be a participant withmore than a 20% interest in a body corporate which is the holder of alicence to provide a local radio service to which this article applies.
(2) This article applies to a local radio service which is—
(a)provided for an area which is substantially the same as that forwhich the service provided by the person mentioned in paragraph (1) isprovided; and
(b)provided on the same frequency band as that service.
(3) A person who holds a licence to provide a local radio service may bea participant with more than a 20% interest in a body corporate which isthe holder of a licence to provide such a local radio service as isdescribed in paragraph (2) if the number of persons over the age of 15resident in the smaller area does not exceed 10% of the number of suchpersons resident in the larger area.
(4) Where such a person as is described in paragraph (3) is aparticipant with more than a 20% interest in a body corporate which isthe holder of a licence to provide such a local radio service as isdescribed in that paragraph he may not be a participant with more than a20% interest in any other such body corporate.
(5) Nothing in this article shall prevent a person from holding licencesto provide local radio services if—
(a)that person was, immediately before the grant of the licences, alocal radio contractor for an area which was substantially the same asthe area in respect of which those licensed services are provided; and
(b)he provided two or more different programme services on differentfrequencies pursuant to his contract.
(6) For the purposes of this article two areas are to be regarded assubstantially the same if at least 50% of the persons over the age of 15 resident in the smaller area are also resident in the larger area.
14. A person who is the proprietor of a national newspaper shall not bea participant with more than a 20% interest in a body corporate which is the holder of a licence to provide a local radio service; and a personwho is the holder of a licence to provide such a service shall not be aparticipant with more than a 20% interest in a body corporate which runs a national newspaper.
15.—(1) A person who is the proprietor of a national or local newspapershall not be a participant with more than a 20% interest in a bodycorporate which is the holder of a licence to provide a domesticsatellite service.
(2) Where such a person as is mentioned in paragraph (1) is aparticipant with a more than 5% interest in a body corporate which isthe holder of a licence to provide a domestic satellite service (but, inaccordance with that paragraph, is not a participant with more than a20% interest in it), he shall not be a participant with more than a 5% interest in any other such body corporate.
(3) A person who is the holder of a licence to provide a domesticsatellite service shall not be a participant with more than a 20%interest in a body corporate which runs a national or local newspaper.
(4) Where such a person as is mentioned in paragraph (3) is aparticipant with more than a 5% interest in a body corporate which runsa national or local newspaper (but, in accordance with that paragraph,is not a participant with more than a 20% interest in such a body), heshall not be a participant with more than a 5% interest in any othersuch body corporate.
16.—(1) Subject to paragraph (2), the categories of licences granted by the Commission and the Authority which may not be held by any of the persons mentioned in Part V of Schedule 2 to the Act are—
(a)in the case of the Commission, licences to provide a Channel 3service, Channel 5 and a domestic satellite service; and
(b)in the case of the Authority, a licence to provide a national radioservice.
(2) Paragraph (1) applies to a national public telecommunicationsoperator who has an annual turnover, attributable to his business assuch an operator, which exceeds £2 billion.
(3) Subject to paragraphs (4) and (5), a national publictelecommunications operator shall not hold a licence to provide a localdelivery service.
(4) Paragraph (3) does not prevent a national public telecommunicationsoperator from holding a licence to provide a local delivery service byvirtue of paragraph 6 of Part II of Schedule 12 to the Act.
(5) Paragraph (3) does not prevent a national public telecommunicationsoperator from holding a licence to provide a local delivery servicewhere—
(a)the closing date for applications for the licence fell after 31stMarch 1994; and
(b)immediately before the invitation for applications for the licencewas published, no part of the area for which the service is authorisedto be provided lay within an area in respect of which there was a localdelivery licence or a licence which continued in force by virtue ofparagraph 1 of Part II of Schedule 12 to the Act.
Home Office
Kenneth Baker
One of Her Majesty’s Principal Secretaries of State
9th May 1991
(This note is not part of the Order)
Schedule 2 to the Broadcasting Act 1990 contains restrictions on theholding of licences which may be awarded by the Independent TelevisionCommission and the Radio Authority. Various provisions of that Scheduleprovide for those restrictions to be supplemented by Order. This Ordercontains supplementary restrictions. It is divided into five parts; PartI is concerned with general matters.
Part II relates to television. The limit contained in Schedule 2 tothe Act that no person may hold more than two licences for regionalChannel 3 services is supplemented so that a person may not holdlicences for two specified large areas or, until such licences have beengranted, for two specified contiguous areas. In addition the holder of aregional Channel 3 licence who has a non-controlling interest in asecond Channel 3 licensee company may not have more than a 20% interestin a third such company, nor more than a 5% interest in a fourth.
The holder of a national Channel 3 licence may not have more than a20% interest in a second national Channel 3 licensee company, nor morethan a 5% interest in a third. Similar limits are applied to Channel 5.The holder of a licence for national or regional Channel 3 or Channel 5may not have more than a 20% interest in a company which holds a licenceto provide a service falling into another of those categories, nor morethan a 5% interest in a third such company. Those who invest in, but donot control, Channel 3 and Channel 5 licensee companies are limited to a20% interest in a third regional Channel 3 company and a 20% interest ina second Channel 3 or Channel 5 company if one company provides anational Channel 3 service or Channel 5. Further investment in Channel 3and Channel 5 is limited to 5%; and those with more than a 5% interestin three Channel 3 or Channel 5 companies are limited to a 5% investmentin any other such companies.
Part III concerns radio. It provides for a points scheme by virtueof which various categories of radio licence are allocated pointsaccording to the size of the population in the areas for which they areprovided. Subject to minor exceptions, no person may hold radio licencessuch that the number of points attributable to them exceeds 15% of thepoints allocated to the radio system as a whole. In addition one personis limited to two licences for the largest type of local radio servicesand six licences for the next size down (four if a national radiolicence is also held). Subject to limited exceptions, a local radiolicensee may not hold, nor have more than a 20% interest in a companywhich holds, a licence to provide a local radio service which overlapssubstantially with his service.
Part IV contains supplementary limits for newspapers. Theproprietor of a national newspaper may not have more than a 20% interestin a company which holds a licence to provide a local radio service andvice versa . The proprietor of a national or local newspaper may nothave more than a 20% interest in a company licensed to provide adomestic satellite service, nor more than a 5% interest in a second suchcompany and vice versa .
Part V concerns national public telecommunications operators. Itprovides that a national public telecommunications operator with anannual turnover of more than £2 billion, his associate, aperson who controls either of them or a body controlled by such anoperator or his associate may not hold a licence to provide a Channel 3or 5 service, a domestic satellite service or a national radio service.Subject to a limited exception, a national public telecommunicationsoperator may not hold a licence to provide a local delivery service. Butafter 1st April 1994 such an operator may bid for such a licence if itis for an area not at that time covered by a licence authorising theprovision of a local delivery service or a prescribed diffusionservice.