This article has been updated to correct an honest mistake made in regards to the fee structures.
The communications regulator has recommended a significant increase on the licence fees paid by radio stations.
Stations would see their licence fee rise from £250 a year to £446.90, a rise of 78.8%,. (In a previous version of this article, our reporter mistook this figure for a new annual figure, this was corrected as soon as possible).
The Communications and Utilities Regulatory Authority says that the current fee is a “historic” one which dates back 20 years.
It said: “The fees have remained unchanged over this period however, during this time the sector has experienced market and economic changes.
“Considering these changes, the Authority believes that it is an appropriate time to review the value of the licence fees and their application to ensure they reflect current market conditions and are appropriate for the future.”
Two Step
The authority’s preliminary view is that the most appropriate method to determine a fair and proportionate total licence fee is through the application of a dual fee structure comprising of an access fee and usage fee.
The Usage fee will see licenceholders pay a fee for the continued right to offer the broadcasting service and associated spectrum for the duration of the licence (10 years) of £4,469 with no reserve for the access fee.
However, the access fee will be “determined by the market in the upcoming award process”.
CURA said: “The Authority believes this allows participants to bid a value that they deem appropriate for access to the licence enabling the market to determine the final value of the licence fee as it allows participants to bid a value that they deem appropriate for access to the licence.”
It added that the increases are due to inflation.
You can read the full report here.
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