Channel4radio – Competition Policy
NATIONAL COMMERCIAL DAB MULTIPLEX
CHANNEL FOUR TELEVISION CORPORATION
FAIR AND EFFECTIVE COMPETITION POLICY
Channel Four Television Corporation (Channel 4) is committed to fair, reasonable and non-discriminatory dealings with potential programme and additional service providers (together Potential Service Providers) in relation to the licence to be advertised by Ofcom for the second national commercial DAB multiplex (the Multiplex). Channel 4 wishes to bid for such Multiplex licence with a full programme and additional service offering. This policy sets out the basis for Channel 4s selection of potential programme and additional service providers as part of its bid package.
Full records of discussions with Potential Service Providers will be retained and Channel 4 has the right to disclose such material to Ofcom at Ofcoms request.
1. Notification to Potential Service Providers and time to express interest.
1.1 Channel 4 has received and invites expressions of interest from Potential Service Providers.
1.2 Channel 4 will, in due course, advertise in the Radio Magazine inviting expressions of interest from Potential Service Providers.
1.3 Channel 4 requires receipt of expressions of interest within a reasonable time and no later than [2 weeks] from the date of the advertisement.
2. Provision of information and investment pre-requisite
2.1 Channel 4 will consider all Potential Service Providers who are able to demonstrate the ability to invest at least £2m per year for the duration of the 12 year licence (to cover minimum expenditure for transmission of the service and programming costs).
2.2 Potential Service Providers should submit written expressions of interest (which can be in e-mail form) to be sent to the Director of Radio or other nominated Channel 4 representative. The expressions of interest should include:
2.2.1 brief details of the type of proposed service, including both content and target audience.
2.2.2. a statement explaining how the proposal will meet the selection criteria set out below (the Selection Criteria).
3. Selection Criteria
3.1 When deciding which types of services to include on the Multiplex, Channel 4 will apply the following Selection Criteria:
3.1.1 The extent to which, in Channel 4s view, the proposed service meets Channel 4s radio Multiplex objectives of providing services which are both creative and innovative; and
3.1.2 The extent to which the proposed service satisfies Ofcoms licensing criterion to promote the development of digital sound broadcasting in the UK as set out in section 47(1) of the Broadcasting Act 1996.
3.2 Any decision made by Channel 4 as regards the selection of a Potential Service Provider will be made in its sole and absolute discretion.
4. Additional objective criteria
4.1 Where more than one Potential Service Provider meets the Selection Criteria, Channel 4 may take into account additional criteria in making a selection including, but not limited to, the Potential Service Providers :-
4.1.1 Ability to maintain the service (in Channel 4s opinion);
4.1.2 Proposals regarding the amount and type of marketing of the service and investment in programming;
4.1.3 Evidence of relevant experience in the successful launch and development of new services, or services on new platforms;
4.1.4 Whether the Potential Service Provider is an equity partner in the Multiplex company/licensee;
4.1.5 Evidence of the Potential Service Providers ability to otherwise contribute to the satisfaction of any of the criteria under section 47(2) the Broadcasting Act 1996; and
4.1.6 Evidence of the ability of the Potential Service Provider otherwise to promote the development of DAB in the UK, or in the opinion of Channel 4 make a significant contribution to the UK radio industry.
5. Confidentiality and terms offered
5.1 In the event that Channel 4 and a proposed programme service provider enter into specific negotiations for the provision of services (subject to licence award), Channel 4 will require the proposed programme service provider to enter into an exclusive arrangement with Channel 4, such that it will not make any approach to, entertain any approach from, or enter into or continue negotiations with any other party with a view to it being involved in a competing application for the Multiplex nor to disclose any details of the negotiations including any draft agreement to any third party without the express written agreement of Channel 4 (such agreement not to be unreasonably withheld).
5.2 Channel 4 reserves the right to contract with Potential Service Providers on different terms. The differences in terms offered will be based on objective factors which may include but are not limited to the following:
5.2.1 Amount, if any, of the Potential Service Providers equity investment in the Multiplex;
5.2.2 Revenue and audience projections;
5.2.3 Proposed length of the term of contract;
5.2.4 Date any Memorandum of Understanding/Heads of Terms is entered into ;
5.2.5 Level and method of marketing support for DAB generally and service(s) provided by them; and
5.2.6 Other value added services being provided.
6. Sound Programme Services
6.1 Channel 4 will undertake initial research to identify the broad parameters of the range of programmes to be offered on the Multiplex. Channel 4 may, as part of this process, include research into formats proposed through initial expressions of interest. This will not imply any intention on the part of Channel 4 to enter into negotiations or contract with any potential programme service provider.
6.2 Although Channel 4 will consider any research submitted by potential programme service providers, Channel 4 reserves the right to undertake its own research both generally, and on specific proposed formats to determine the suitability or otherwise for the inclusion of the service on the Multiplex.
6.3 Channel 4 will consider not only the merits of individual proposals in their own right, but how they:
6.3.1 will appeal to a variety of tastes and interests; and
6.3.2 are distinct from that which is offered on the existing commercial national DAB multiplex.
6.4 Potential sound programme service providers will be offered capacity to provide a service to be broadcast at either mono or stereo standard, for the hours proposed (as is appropriate for the particular proposed service). The amount of capacity (kilobytes per second kbs) to be used will vary, but will be no less than the minimum technical standards agreed by Ofcom from time to time. Channel 4 will not contract for a pre-determined amount of kbs as the capacity needed to broadcast sound programme services to the required standard will vary with improvements in technical compression techniques over the expected term of the multiplex licence. However, Channel 4 is committed to ensuring that all services meet the required standards approved by Ofcom from time to time.
This policy has been prepared with a view to ensuring fair and effective competition when contracting, or offering to contract with persons providing digital sound programme services or additional digital services with respect to Channel 4s bid to Ofcom for the Multiplex. Whilst Channel 4 will seek to apply the terms of this policy in each case, please note that these are guidelines only and, accordingly, Channel 4 reserves the right to make any amendments or variations as it sees fit from time to time. Any amendments will be noted clearly on the policy and posted on the Channel 4 website as and when these occur.
[September 2006]
