We also oversee the universal postal service, which means Royal Mail must deliver and collect letters six days a week, and parcels five days a week, at an affordable and uniform price throughout the UK. Type of funding: Grant Source: Statutory Type of cost: Revenue Gives grants to help fund the core costs of running community radio stations. For information on these cookies and how to remove them, read our cookies policy. The actual operating outturn represents the accrual-based costs for the financial year and excludes non-cash items such as depreciation, amortisation and provisions. Both plans are closed to new entrants and benefits accruals ceased on 31 May 2011. If you ask us for an internal review of our decision, it will be The variance to the previous year was due to the spectrum auction completed in 2018/19. We consider every complaint we receive from viewers and listeners. Following the introduction of IFRS 16, property lease costs are presented on a separate line in the operating expenditure, Depreciation ROU lease assets. During the 2019/20 financial year Ofcom collected £373.3m (2018/19: £1,688.6m1. The band is being cleared to make the spectrum available for mobile data. The accounting surplus for the financial year after tax, recorded in the Statement of Comprehensive Net Income for the year under review, was £226.7m (2018/19: £229.6m deficit). Panelists: Magnus Brooke, Director of Policy and Regulatory Affairs, ITV Jackie Edwards, Head of the Young Audiences Content Fund, BFI Oli Hyatt, Animation UK John McVay, Chief Executive, Pact Ben Roberts, Director, BFI Film Fund Megan Thomas, Senior Policy & Public Affairs Executive, Channel 4 Today sees Ofcom publish some more detail on the funding regulations (pdf file) for how KCOM and BT can receive compensation for delivering service under the USO. The balance was passed to DCMS as our sponsor department, the UK Consolidated Fund, as well as the Department of Finance and Personnel - Northern Ireland (DFPNI) and to the Treasuries of the Isle of Man, the Bailiwick of Jersey and the Bailiwick of Guernsey. This is particularly important for vulnerable or older people. Any surplus funds arising as a consequence of budgetary savings achieved during the financial year are returned to stakeholders through a reduction in the annual tariffs raised in the two following financial years. These not-for-profit radio stations have a social purpose, and work to involve their target community in running the service. In 2010, Ofcom published a statement setting out a specimen performance bond as an example of the type of instrument that code operators could choose to put in place in order to secure provision of funds. We are also a net contributor to HM Treasury; Ofcom collected £373.3m of fees and penalties in 2019/20, of which we retained £56.8m to fund our spectrum management and other relevant duties. One of the ways in which Ofcom funds its activities is to charge certain companies an annual administration fee. It is the taxman, unable to discuss poetry. The Ofcom (Former ITC) pension plan valuation liabilities have all been bought in and thus there is no surplus or deficit. It is affiliated with Islamic Republic of Iran Broadcasting (IRIB), the only organization legally able to transmit radio and TV broadcasts in Iran. Ofcom has hit BT with a £3,727,330 bill for reporting inaccurate financials to the regulator, leading to the telco paying lower administration fees for five years. IT costs increased by £1.4m as we refreshed our IT estate; Temporary staff and recruitment costs increased by £0.8m to cover vacancies; most of the increase in temporary staff costs is as a result of the need to quickly staff up in the network security and resilience area whilst permanent recruitment was underway for the specialist skills required, and also in the People & Transformation Team following a restructure. However, the 2019/20 financial statements show a surplus of £22.4m, in part because the pension liabilities under the financial statements are prepared on the basis that the liabilities are discounted in line with the yields on high-quality bonds which, under current market conditions, differ significantly from the approach used for determining Ofcom’s contributions. Ofcom, it’s safe to say, doesn’t understand art. Ofcom is the regulator and competition authority for the UK communications industries. Further detail on this is set out on page 56. We also help to make sure people don’t get scammed and are protected from bad practices. We make sure people get the best from their broadband, home phone and mobile services, as well as keeping an eye on TV and radio. We look after the airwaves used by wireless devices like cordless phones, walkie talkies and even some car keys and doorbells. If you are unhappy with the response or level of service you have received in relation to your request from Ofcom, you may ask for an internal review. We use cookies to improve your experience on our site. The culture secretary, Nicky Morgan, and the home secretary, Priti Patel, said Ofcom’s existing position as broadcasting regulator made it suitable to enforce rules to keep the internet safe. In 2019/20, our cash outturn of £124.0m was within 0.2% of our budget of £124.2m. Reduced restructuring activity has seen restructuring costs decrease by £0.6m to £0.3m (2018/19 £0.9m). MUMBAI: The Office of Communications (Ofcom), UK’s government-approved regulator for the broadcast sector, has fined Arnab Goswami-owned Hindi news channel Republic Bharat GBP 20,000 for airing “highly offensive hate speech” during one of its shows, ‘Poochta Hai Bharat’. The communications watchdog Ofcom will take over regulation of … The surplus of £2.6m will be adjusted for as part of 2020/21 grant-in-aid. A total of £312.8m was transferred to Government accounts in the financial year. Apparently OFCOM isn't a funded organization but rather a company that oversees funding in the United Kingdom. Ofcom published the 2020/21 Tariff Tables on 31 March 2020, based on the budget of £131.9m set for 2020/21 and incorporating the differences between the budgeted costs for 19/20 and the actual results, per sector. It holds sweeping powers over broadcasting, telecommunications and even postal industries in the UK. Ofcom is the communications regulator in the UK. For example, Ofcom tested six locations in the Charing Cross area of London, three of which included emissions measurements in 3.4GHz, which is a 5G band. This also reflects the significant movements in financial markets since the date of the actuarial valuations. The fees and charges will vary by sector as they reflect planned work for 2020/21, along with the variances between the 2019/20 budget and the actual final expenditure. Core functions funded include: fundraising to support the station (e.g. Press TV (stylised as PRESSTV) is an Iranian state-owned news and documentary network that broadcasts in the English and French languages. Whilst Ofcom is directly accountable to Parliament, our funding comes from fees charged out to the sectors we regulate. The Broadband USO is being run by Ofcom with KCOM and BT the two broadband retailers given the task of implementing it following the rules set by Ofcom. We are committed to being a cost-conscious, value for money organisation in discharging our duties. In 2017, Ofcom discovered that BT had been overcharging millions of landline customers, and the company agreed to reduce its prices by £7 each month (£84 per year), with costs falling from £18.99 per month to £11.99. The increase in costs year on year relates to the annual pay award (£1.8m) and growth in our Technology team as we build our data and network security and resilience capabilities. Ofcom tracks Gigabit broadband growth, and bill payment challenges, in the UK Open Fiber stake heading Macquarie’s way Fiber access broadband network action leads today’s news roster, with expansion in the UK leading to new jobs creation and a stake in Italy’s Open Fiber set to change hands. Cash payments, rather than the amount charged to operating surplus as calculated under IAS19, are included in operating expenditure outturn used to calculate the tariffs charged to stakeholders each year. We are committed to being a cost-conscious, value for money organisation in discharging our duties. Non-staff expenditure relating to Ofcom’s core responsibilities in 2019/20 increased by £1.9m to £47.9m (2018/19 £46.0m), which excludes payroll staff costs. An accounting deficit occurs where depreciation, amortisation and other non-cash transactions are greater than the income received to cover the cash costs of capital items and the defined benefit pension plans. But I wanted to know more about this OfCom. Ofcom present the costs relating to Spectrum Clearance separately to clearly differentiate from the core Ofcom operational activity. Whilst Ofcom is directly accountable to Parliament, our funding comes from fees charged out to the sectors we regulate. An accounting surplus is required to cover expenditure not reflected in the Statement of Comprehensive Net Income, including capital expenditure and deficit recovery payments necessary in respect of the two defined benefit pension plans. Ofcom’s calculation will also be audited. Ofcom provides pension benefits through a defined contribution pension allowance that is available to all colleagues. premium-rate telephone services. The 2020/21 budget is in line with the HM Treasury’s spending cap set for Ofcom. The incumbent users of the 700MHz band, digital terrestrial television (DTT) and programme making and special events devices (PMSE), will move to alternative frequencies. Note 2 of the accounts within Section C reconciles the total operating expenditure as presented in the Statement of Comprehensive Net Income to Ofcom’s actual operating outturn. Over the past 15 years, we have continued to deliver year on year, like-for-like real-terms budget reductions. Ofcom will provide guidance to help businesses understand whether the services they provide would fall into the scope of the regulation. As part of this, we also received £0.7m of grant funding from Innovate UK under the Regulators Pioneer Fund, for innovative work on the use of blockchain for UK telephone number management. The large accounting surplus and deficit over the past two years are non-recurring events. Ofcom prepares a separate set of Financial Statements for the purposes of Section 400 of the Communications Act 2003. We are independent, and funded by fees paid to us by the companies we regulate. The note also reconciles income on the same basis and presents Ofcom’s actual operating outturn and income by sector. They will be dealt with via an. Ofcom - Community Radio Fund. We provide advice and information to thousands of people each year, through our website and call centre. If stations have not received updated paperwork back from Ofcom, stations should be reassured that licence renewals are in hand. Almost 62% of our total cost base relates to staff costs, with a significant part of the remaining cost base fixed in relation to property and systems costs. Clearance of the 700 MHz band continues as a major programme of work for Ofcom. Often, we investigate further and we sometimes find broadcasters in breach of our rules. This fee is determined by the total revenues generated by the company. Government has made grant-in-aid funding available for the grant scheme to allow Ofcom to disburse grants to scheme participants. Stewart Purvis, former CEO and Editor-in-Chief of ITN and Ofcom Partner for Content and Standards. Find out more. The funding surplus for the financial year is set out in Note 2 to the accounts and totals £8.6m (2018/19 £3.3m surplus). These are regulated by the Phone-paid Services Authority; standards of advertising on TV, radio or the internet. Parliament has not given us powers to resolve people’s complaints about their broadband, home phone or mobile phone. The main operating variances from the prior year are due to: Staff costs increased by £2.4m to £79.2m (2018/19 £76.8m). More information on the programme is provided in annex 8. Instead, these can be considered by alternative ‘dispute resolution’ services. This approach specifies the actual funds that need to be collected to discharge cash liabilities during the year. Ofcom currently has a backlog of WTA processing and paperwork due to the conclusion of analogue licensing and the work on the Community Radio Fund. 1 £1.3bn of receipts were collected in 2018/19 relating to the conclusion of the spectrum auction of the 2.3 and 3.4 GHz bands. ) We use cookies to improve your experience on our site. As a consequence of the risk mitigation work between Ofcom and the Trustees and Actuaries of both pension plans, approximately 80% of the plans’ liabilities are now backed by annuities. The Ofcom Defined Benefit Pension Plan actuarial valuation shows a surplus of £0.4m. The operating revenue required by Ofcom to fulfil its duties and deliver its programme of work for any financial year is calculated based on Ofcom’s statement of charging principles. The Community Radio Fund helps to fund the core costs of running Ofcom-licensed community radio stations. Spectrum Clearance expenditure amounted to £76.7m in 2019/20 (2018/19: £72.5m), which includes £73.7m of grants paid to grant scheme participants. Ofcom is the UK's communications regulator. Licence fee money should not be used to fund future regulation of the BBC, Scotland's culture secretary has said. At the three locations where 3.4GHz was in use, the percentage of the ICNIRP reference levels for general public exposure was … As part of the ongoing activity to manage and mitigate risks of the plans, further insurance-backed benefit buy-ins in respect of pensioner members will be considered in the future. As shown in the figure below, except for costs associated with our new responsibilities to regulate the BBC from 3 April 2017, Ofcom’s 2020/21 tariffs for the various sectors (excluding the new VSP regulatory duty) are largely in line with the 5-year average. Ofcom administered two rounds of funding earlier this year with grants that provided 111 successful applicants totaling £406,810. The allowance may be used to contribute to the Ofcom defined contribution stakeholder pension plan. These transactions are not included in the Financial Statements. Gives grants to help fund the core costs of running community radio stations. Our priority is to look after you, and we sometimes do this by promoting competition among companies we regulate. We received income totalling £79.2m (2018/19: £72.1m). The average staff numbers were 937 full time equivalents (FTE) (2018/19 902 FTE). Alternative Dispute Resolution (ADR) scheme; people are able to use communications services, including broadband; a range of companies provide quality television and radio programmes that appeal to diverse audiences; viewers and listeners are protected from harmful or offensive material on. The £125.0m (2018/19: £124.3m) of income received in 2019/20 covers Ofcom’s core responsibilities (excluding Spectrum Clearance). How much money they award themselves from the We register complaints from people and businesses, which helps us to take action against firms when they let their customers down. Ofcom makes cash payments to the Ofcom Defined Benefit Plan and the Ofcom (Former ITC) pension plan on the basis of the actuarial valuations. Our duties come from Parliament. For 2020-21, grants have been provided as emergency cash funding to support stations facing severe financial difficulty due to the coronavirus (“Covid-19”) outbreak. From this time, all existing members were provided with access to the Ofcom stakeholder plan. Ofcom is the regulator for the communications services that we use and rely on each day. It looks after fixed line telecoms, mobile phones, and postal services. We regulate the TV, radio and video-on-demand sectors, fixed line telecoms, mobiles, postal services, plus the … Ofcom warns that with funding under pressure and viewers turning away in favour of global streaming services, traditional PSBs may not survive in the online world unless broadcasting laws and regul Information for the TV, radio and on-demand industry, broadband, home phone and mobile services, alternative ‘dispute resolution’ services. UK regulator Ofcom fined BT £6.3m after it had failed to meet regulatory obligations during procurement for a major public sector telecoms services contract in Northern Ireland. The regulator has imposed the sanction on Worldview Media Network, which operates the channel in the UK. Ofcom proposes their approach which includes considering: the cost to Ofcom and industry of establishing and administering an industry fund; The Office of Communications (Welsh: Y Swyddfa Gyfathrebiadau), commonly known as Ofcom, is the government-approved regulatory and competition authority for the broadcasting, telecommunications and postal industries of the United Kingdom. To retain membership of one of two defined benefit pension plan valuation liabilities have all been in! The allowance may be used to contribute to the conclusion of the ways which... £3.3M surplus ) advice and information to thousands of people each year, like-for-like budget. 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