Consultation:  A consultation on Modifications to Spectrum Pricing

Lead Agency: Office of Communications (Ofcom)
Published: 06|07|2006
Closing date: 15|09|2006

Read online: The Ofcom Consultation

 

This consultation concerns a set of proposals to add or modify some licence charges under the Wireless Telegraphy Act (the “WT Act”). These proposals further implement Ofcom’s general approach to Wireless Telegraphy Act charges as set out in Ofcom’s Spectrum Pricing consultation in September 2004 and subsequent statement published in February 2005. Current proposals relate both to Administered Incentive Pricing (AIP) and charging to ensure spectrum management costs are covered for each type of services.

 

There is a significant opportunity in this consultation for Community radio because it proposes a lower, annual flat rate for licences issued to Community Radio, see Section 6:

Section 6

Other changes
Community Radio

6.1 Community Radio is licensed under both the Broadcasting Act and under the Wireless Telegraphy Act. These proposals only relate to the latter. The current charge for WT Act licence fees for community radio, based on population coverage and waveband, is set by regulation to be the same basis as national and regional radio broadcasting licences. That is as follows:

FM

* £339 for a minimum coverage area (MCA) of fewer than 100k adults.

* For MCAs of more than 100k adults, £509 for every 100k adults.

AM

* £226 for an MCA of fewer than 100k adults.

* For MCAs of more than 100k adults, £339 for every 100k adults.

6.2 In the interests of greater simplicity and to avoid community radio services in urban areas (especially those broadcasting on the AM (medium wave) band) being charged disproportionately more for their WT Act licences than services in non-urban areas, Ofcom proposes to revise the charge such that there will be a flat fee of £250 per annum charged for each WT Act licence issued to community radio broadcasters. The same fee will apply to all licensees (i.e. the tariff will be waveband neutral). This rate will be sufficient to make a reasonable contribution towards the cost of licensing these services and to the relatively small coverage and bandwidths involved when compared with other spectrum usage.

 

Question 6) Do you agree with these proposals for simplifying the fee for Community Radio? 

 

This is the question that the Community Radio sector needs to support within this consultation.

 

Following the end of the consultation period, Ofcom intends to further implement Ofcom’s general approach to spectrum pricing as set out in the September 2004 consultation; and makes proposals for updating the level of fees applied to different licence classes.

 

Further Information
Further information about this consultation is available on the Ofcom website: The Ofcom Consultation