I propose to take Questions Nos. 3, 4 and 14 together.
I do not accept the contention that the proposed MMDS system is not capable of giving service to rural areas or that it is an obsolete technology. In fact this country is the first European country to adopt MMDS. Other European countries are actively examining its potential and I see no reason to delay its introduction here. Interested parties, who have done extensive investigations into this system and who are prepared to invest considerable sums of money in MMDS are quite satisfied that the system is capable of serving rural areas. My policy regarding the issue of MMDS licences has been reinforced by the confidence shown by private sector investors. The whole concept behind this system is to provide legitimate access to a wider choice of television services, including UK terrestrial and satellite delivered services to viewers in rural and other areas not served or unlikely to be served by cable systems. The MMDS system will be capable of carrying up to 11 channels.
I will be making statutory regulations shortly under the Wireless Telegraphy Acts governing the issue of licences for MMDS systems. These regulations will be broadly along the lines of the Wired Broadcast Relay Licence Regulations, 1974, which govern the issue of licences for cable television systems. It is envisaged that an initial licence fee of £20,000 and an annual fee of 5 per cent of net revenue, thereafter, will be payable by MMDS licensees. The charges which will apply to subscribers to MMDS systems will be a matter for the licensees in the first place and will depend on a range of factors. The expectation is that charges will be of the order of those applying in the more modern and recently built cable systems, about £100 per annum. It is expected that a once off installation charge of about the same amount will be payable.
I will be inviting applications for licences by way of public notice in the immediate future.