adamedia

communications-act-2003.doc (Word document – easier for printing)

Communications Act 2003 

AIM: The Communications Act 2003 aims to introduce a lighter regulatory framework for the electronic media and communications industries, enabling them to respond to technological and market changes.

What did the Act do? 

Established a single regulator Ofcom, to set regulatory standards for all television and broadcasters.

• replaced the ITC, the Radio Authority and the BSC and also incorporated the telecommunications work of Oftel and the Radiocommunications Agency.
• Ofcom has the power to fine or revoke licences of broadcasters and will have the power to impose criminal liability on directors of a company which commits an offence.

Deregulating & Removing Restrictions 

• Prohibitions on non-European ownership of certain broadcasting licences removed.
• Prohibition removed on ownership of certain broadcasting licences by religious bodies, and in certain instances, local authorities

Relaxing the rules on cross-media ownership

All regulations removed apart from 3 core rules:

• Newspaper groups controlling more than 20% of the
  UK market would not be allowed ‘significant stakes’ in ITV. However, large newspaper groups would be able to buy a stake in Channel 5.
• A person owning a regional ITV licence will not be able to own more than 20% of the local/regional newspaper market in the same region
• Each local area must have ‘three voices’ – radio, television and newspapers – in different hands

Relaxing rules on Television & Radio ownership 

• Rules preventing the ownership of a single ITV disappear
• Rules preventing one company from owning the two
  London franchises (Carlton/LWT) would disappear
• Radio groups would be able to own more than one national commercial radio licence. Rule changes would also allow the consolidation of local commercial radio – there must be at least two operators and the BBC in areas with three or more ‘local’ stations.

Any criticisms?

• Ofcom’s responsibilities are stretched across too many different areas.
• Too little emphasis on devising measures to ensure he continuation of Public Service Broadcasting.