Ofcom to extend spectrum congestion charge to Public Service Broadcasters

Ofcom say today:

“Ofcom today announced new measures to provide clear incentives for the efficient use of the radio spectrum used by terrestrial television and radio broadcasters.

To be introduced in 2014, digital terrestrial radio and television broadcasters will be required to pay an annual fee – known as Administered Incentive Pricing (AIP) – that reflects the amount of spectrum they use.

The application of AIP is one way to encourage spectrum users to make efficient use of their frequencies, or to release the spectrum to others who can make better use of it. The introduction of AIP for spectrum used for terrestrial broadcasting will bring television and radio in line with other spectrum users. For example, the Ministry of Defence, mobile phone operators, and the emergency services all pay AIP or an equivalent charge.

Specifically, AIP will be levied on:

  • digital terrestrial television broadcasting (multiplex operators: BBC, ITV & Channel 4, SDN and National Grid Wireless);
  • digital national radio broadcasting (national multiplex operators: Digital One, the BBC and the winner of the new national DAB multiplex, to be announced next month); and
  • digital local radio broadcasting (10 current multiplex operators, plus any new future local DAB multiplex operators).

In addition, the BBC will be required to pay for the spectrum it uses for analogue radio on the same basis as commercial broadcasters from 2008. Commercial broadcasters already pay a charge equivalent to AIP.”

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