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How to optimize the sum of a licence fee for issuance and duration of licence on broadcasting?

After switching from analogue distribution of program to digital broadcasting, more and more television and radio organizations are looking to obtain a license for digital broadcasting.

The licensing procedure for digital broadcasting is carried out in accordance with the Law of Ukraine "On Television and Radio Broadcasting". In a general context, licensing procedure practically does not differ from "standard licensing procedures":

  • bring constitutional and other necessary documents in compliance with the licensing requirements,
  • collect and submit a package of documents to the National Council of Television and Radio Broadcasting of Ukraine,
  • obtain a positive decision on winning a competition for a license issuance,
  • pay a license fee,
  • obtain a license that gives the right to carry out broadcasting.

Under most circumstances, the license fee for a license issuance for a certain type of business activity is fixed and is paid based on the level of the monthly living wage (applicable to an able-bodied person). Regarding the license fee for broadcasting - it is not fixed and is based on several factors, which affect its size.

Issue regarding the size of licensing fee is stipulated with The Resolution of the Cabinet of Ministers of Ukraine number 44212 dated April 13, 2011.

In accordance with the Resolution, a size of the license fee for issuance (prolongation) of the license for broadcasting using and without using radio frequency resource is calculated according to the relevant formulas.

The main criteria for broadcasting using radio frequency resource are:

  • A coefficient, which takes into account a broadcasting territory of ​​provision of services. The main focus is on a settlement in the territory of distribution of programs with the maximum population size.

For instance, if a population size is from 50 thousand to 100 thousand, a coefficient will be 25, if from 300 thousand to 500 thousand, a coefficient will be 100. That is, the larger the population size is, the higher the coefficient will be, and, consequently, a total amount of license fee. However, for Kyiv city the coefficient is 400; and for the population within territory of Ukraine it is 3000.

  • A coefficient of network potential, which is based on transmission power.

For instance, if the transmission power is 1000 W, the coefficient will be 1.1, if the power is 1500, the coefficient will be 1.15. That is, the more powerful the transmitter is, the higher amount of the license fee will be.

  • Among other indicators, which affect the amount of the license fee is the level of the monthly living wage, applicable to an able-bodied person (1921 UAH from January 2019) and the average daily volume of broadcasting. The larger the average daily volume of broadcasting is, the higher amount of the license fee will be.

The main criteria for broadcasting without using radio frequency resource are:

  • A coefficient, which takes into account a broadcasting territory of ​​provision of services. Namely, a total population size in the territory (region, district, city, district in the city, village, etc.), where the broadcasting is provided; The larger the total population size is, the higher amount of the license fee will be.
  • It also takes into account the level of the monthly living wage, applicable to an able-bodied person and the average daily volume of broadcasting. The larger the average daily volume of broadcasting is, the higher amount of the license fee will be.

In practice, an amount of the fee for issuing a license for broadcasting with the use of radio frequency resources is higher than the issuance of a license for broadcasting without using of radio frequency resources.

Conclusions

Consequently, an attention should be paid to what affects the amount of the license fee when obtaining a license for broadcasting. It is need to determine the most optimal conditions for the provision of services at the stage of preparation of the necessary package of documents. When preparing the necessary documents, it is already possible to most accurately understand the number of people, for whom the services will be provided, as well as whether it is possible to provide the services to an appropriate number of population (providing that the use of the transmitter with the least possible power or without using the transmitter). If you want to save money on the amount of the license fee, you should choose a license for broadcasting without using radio frequency resource, or pick up such a radio frequency transmitter, power of which will provide a signal transfer exclusively to the territory you need.

Need a license for broadcasting? In order to get legal advice from a lawyer, please call

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