Whilst Ofcom is directly accountable to Parliament, our funding comes from fees charged out to the sectors we regulate. We are independent, and funded by fees paid to us by the companies we regulate. premium-rate telephone services. Instead, these can be considered by alternative ‘dispute resolution’ services. It holds sweeping powers over broadcasting, telecommunications and even postal industries in the UK. Ofcom, it’s safe to say, doesn’t understand art. During the 2019/20 financial year Ofcom collected £373.3m (2018/19: £1,688.6m1. Both plans are closed to new entrants and benefits accruals ceased on 31 May 2011. Information for the TV, radio and on-demand industry, broadband, home phone and mobile services, alternative ‘dispute resolution’ services. 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. We look after the airwaves used by wireless devices like cordless phones, walkie talkies and even some car keys and doorbells. If stations have not received updated paperwork back from Ofcom, stations should be reassured that licence renewals are in hand. The main operating variances from the prior year are due to: Staff costs increased by £2.4m to £79.2m (2018/19 £76.8m). The communications watchdog Ofcom will take over regulation of … This approach specifies the actual funds that need to be collected to discharge cash liabilities during the year. Ofcom makes cash payments to the Ofcom Defined Benefit Plan and the Ofcom (Former ITC) pension plan on the basis of the actuarial valuations. For information on these cookies and how to remove them, read our cookies policy. Ofcom present the costs relating to Spectrum Clearance separately to clearly differentiate from the core Ofcom operational activity. If you ask us for an internal review of our decision, it will be The average staff numbers were 937 full time equivalents (FTE) (2018/19 902 FTE). Ocom regulates the TV and radio sectors, fixed line telecoms, mobiles, postal services, plus the airwaves over which wireless devices operate, and make sure that people in the UK get the best from their communications services and are protected from scams and sharp practices, while ensuring that It’s full name is the Office of Communications. Both areas have now completed permanent appointments; Outsourced Services increased by £0.4m in respect of preparatory work for the upcoming auction of 700 MHz and 3.6 – 3.8 GHz Spectrum bands; Premises costs decreased by £0.8m as we recognised a rates credit in respect of Riverside House. 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. 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). Over the past 15 years, we have continued to deliver year on year, like-for-like real-terms budget reductions. The significant variance to the prior year reflects the inclusion of the provision of £232m in the 2018/19 financial statements which was funded by DCMS and settled in this financial year. Ofcom provides pension benefits through a defined contribution pension allowance that is available to all colleagues. 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. 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. Ofcom is the regulator for the communications services that we use and rely on each day. I do hope that the OfCom is under the Ministry of Truth in … 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. We consider every complaint we receive from viewers and listeners. 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. 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. :: Ofcom Riverside House 2a Southwark Bridge Road London SE1 9HA 020 7981 3000 [3]www.ofcom.org.uk. The variance to the previous year was due to the spectrum auction completed in 2018/19. The band is being cleared to make the spectrum available for mobile data. 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. The note also reconciles income on the same basis and presents Ofcom’s actual operating outturn and income by sector. 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. Our responsibilities include the collection and transfer of licence fees collected under the Wireless Telegraphy Act 2006 (WTA), geographic telephone numbers, additional payments from broadcasting licensees and the levying of fines and penalties on stakeholders. They will be dealt with via an. 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. Ofcom administered two rounds of funding earlier this year with grants that provided 111 successful applicants totaling £406,810. people are protected from unfair treatment in programmes, and don’t have their privacy invaded; the universal postal service covers all UK addresses six days a week, with standard pricing; and, the radio spectrum is used in the most effective way, individual disputes between you and your home phone, broadband or mobile provider. 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 are committed to being a cost-conscious, value for money organisation in discharging our duties. 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. We use cookies to improve your experience on our site. Over the past 15 years, we have continued to deliver year on year, like-for-like real-terms budget reductions. 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. Colleagues who joined Ofcom from legacy regulators were entitled to retain membership of one of two defined benefit (DB) pension plans. The Ofcom (Former ITC) pension plan valuation liabilities have all been bought in and thus there is no surplus or deficit. 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. These not-for-profit radio stations have a social purpose, and work to involve their target community in running the service. In 2019/20, our cash outturn of £124.0m was within 0.2% of our budget of £124.2m. Following the introduction of IFRS 16, property lease costs are presented on a separate line in the operating expenditure, Depreciation ROU lease assets. 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. 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. Ofcom is the communications regulator in the UK. Ofcom’s calculation will also be audited. We would emphasise that the specimen bond is for illustrative purposes and is just one means by which a Code operator can fulfil its obligations under Regulation 16. This fee is determined by the total revenues generated by the company. We are committed to being a cost-conscious, value for money organisation in discharging our duties. The regulator has imposed the sanction on Worldview Media Network, which operates the channel in the UK. 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. The £125.0m (2018/19: £124.3m) of income received in 2019/20 covers Ofcom’s core responsibilities (excluding Spectrum Clearance). These not-for-profit radio stations have a social purpose, and work to involve their target community in running the service. Our duties come from Parliament. These are regulated by the Advertising Standards Authority; what people write or post on the internet. 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. 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. From this time, all existing members were provided with access to the Ofcom stakeholder plan. A total of £312.8m was transferred to Government accounts in the financial year. 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. We received income totalling £79.2m (2018/19: £72.1m). Chat: Yahoo Finance. Licence fee money should not be used to fund future regulation of the BBC, Scotland's culture secretary has said. Accept cookies Ofcom - Community Radio Fund. The 2020/21 budget is in line with the HM Treasury’s spending cap set for Ofcom. Core functions funded include: fundraising to support the station (e.g. Our priority is to look after you, and we sometimes do this by promoting competition among companies we regulate. The incumbent users of the 700MHz band, digital terrestrial television (DTT) and programme making and special events devices (PMSE), will move to alternative frequencies. Ofcom is the regulator and competition authority for the UK communications industries. These transactions are not included in the Financial Statements. 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. But I wanted to know more about this OfCom. 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 fees, payments and penalties are reported, with further detail provided, within these Financial Statements in Note 23 to the accounts, with further information in Annex 1 on page 156. Ofcom prepares a separate set of Financial Statements for the purposes of Section 400 of the Communications Act 2003. Parliament has not given us powers to resolve people’s complaints about their broadband, home phone or mobile phone. The actuarial valuations for both schemes as at 31 March 2018 highlighted a combined funding surplus of £0.4m. Find out more. Besides overall disgust, there is a very strong link between the BBC and this story concerning the people who run OFCOM, the supposed media 'watchdog'. We also help to make sure people don’t get scammed and are protected from bad practices. The large accounting surplus and deficit over the past two years are non-recurring events. Press TV (stylised as PRESSTV) is an Iranian state-owned news and documentary network that broadcasts in the English and French languages. Ofcom is also working on licence renewals. We regulate the TV, radio and video-on-demand sectors, fixed line telecoms, mobiles, postal services, plus the … The allowance may be used to contribute to the Ofcom defined contribution stakeholder pension plan. 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. For information on these cookies and how to remove them, read our cookies policy. 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. These are regulated by the Phone-paid Services Authority; standards of advertising on TV, radio or the internet. 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. Often, we investigate further and we sometimes find broadcasters in breach of our rules. Further detail on this is set out on page 56. 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. This also reflects the significant movements in financial markets since the date of the actuarial valuations. on behalf of HM Treasury of which £56.8m (2018/19: £54.3m) was retained to fund some of Ofcom’s core responsibilities, including Spectrum Management. 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. How much money they award themselves from the 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. Information for the TV, radio and on-demand industry, Ofcom's Annual Report and Accounts 2019/20. Once the net cost is determined, Ofcom will decide whether it would be unfair for the provider to bear some, or all, of the cost. 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. ) Clearance of the 700 MHz band continues as a major programme of work for Ofcom. It is affiliated with Islamic Republic of Iran Broadcasting (IRIB), the only organization legally able to transmit radio and TV broadcasts in Iran. 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. This is particularly important for vulnerable or older people. We also help to make sure people across the UK are satisfied with what they see and hear on TV and radio, and that programmes reflect the audiences they serve. One of the ways in which Ofcom funds its activities is to charge certain companies an annual administration fee. Ofcom proposes their approach which includes considering: the cost to Ofcom and industry of establishing and administering an industry fund; It is the taxman, unable to discuss poetry. Gives grants to help fund the core costs of running community radio stations. Whilst Ofcom is directly accountable to Parliament, our funding comes from fees charged out to the sectors we regulate. Note of the Twenty-ninth Meeting of the Ofcom Community Radio Fund Panel held at Riverside House, 2a Southwark Bridge Road, London on Tuesday 19 June 2018 (PDF, 109.4 KB) It is our policy to keep board and committee minutes on our site for two years only. Notes 1(k) and 20 to the accounts provide further detail. We register complaints from people and businesses, which helps us to take action against firms when they let their customers down. Find out more. It looks after fixed line telecoms, mobile phones, and postal services. We use cookies to improve your experience on our site. Reduced restructuring activity has seen restructuring costs decrease by £0.6m to £0.3m (2018/19 £0.9m). Ofcom will provide guidance to help businesses understand whether the services they provide would fall into the scope of the regulation. The Ofcom Defined Benefit Pension Plan actuarial valuation shows a surplus of £0.4m. 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). BT slumped on the back of the news on Monday. We provide advice and information to thousands of people each year, through our website and call centre. The actual operating outturn represents the accrual-based costs for the financial year and excludes non-cash items such as depreciation, amortisation and provisions. All costs relating to Spectrum Clearance are reported separately from Ofcom’s core responsibilities in the financial statements. 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. Ofcom colleagues are employed on terms with access to a stakeholder pension plan. Viewers took to Ofcom to complain about Holly's outfit (Image: ITV) Others were from angry viewers offended by Holly's cleavage, with some claiming it was obscene for a pre-watershed show. 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. The 2020/21 budget has increased from the 2019/20 budget due to our new Video Sharing Platform (VSPs) regulatory duty and increased spend on both the Universal Service Obligation and Network Security and Resilience work areas. 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