Part 2: Prominence on television selection services Must-offer and must-carry obligations Section 362AM Meaning of "the agreement objectives"
Subsection (1) sets out "the agreement objectives" which the providers of RTSSs and designated IPSs must act consistently with during commercial negotiations and while keeping commercial agreements in force (362AJ(3) and 362AK(2)). In respect of the BBC, equivalent "agreement objectives" which they must act consistently with will apply through their Framework Agreement. This is to encourage healthy and effective negotiations where both parties are able to reach reach an appropriate arrangement for the availability and prominence of the designated IPS on the relevant RTSS which secures that:
the designated IPS is given appropriate prominence within the RTSS. This includes giving appropriate prominence to any public service remit content and "listed channel" included in that designated IPS: see subsection (2). The "listed channels" are set out under subsection (3);
the arrangements do not adversely affect the continued provision of public service content to audiences.
the arrangements prevent disproportionate impacts on a RTSS’ ability to innovate its service.
	Under the Communications Act 2003 S4C and licensed public service channels must be offered to ‘appropriate networks’ for carriage (subject to the need to agree terms) and conversely the providers of those ‘appropriate networks’ must carry them if required to do so by OFCOM. (The BBC has equivalent "must offer" obligations under the Royal Charter and Framework Agreement.) This is underpinned by a mutual recognition that the respective value of carriage fees and payments for content should level each other out (referred to as a zero net fee arrangement).
	The agreement objective at 362AM(1)(b)) would be compatible with such an arrangement, i.e. there is no requirement for payments or transfers of value to pass between the provider of a designated IPS or RTSS (in either direction) for the supply and carriage of a designated IPS. However there may be instances where payments or transfers of value are deemed an appropriate arrangement between parties – for example, to cover costs reasonably incurred by the provider of the designated IPS to accommodate bespoke technical requirements of the provider of the relevant RTSS. Arrangements may also (subject to commercial negotiation) address issues outside the scope of the agreement objectives, i.e. that do not relate to the inclusion of the IPS in the RTSS.
	Further detail as to what terms would be considered consistent with these agreement objectives are to be set out in guidance produced by OFCOM which OFCOM are required to consult on (see section 362AL). The Department expects OFCOM’s guidance will look to provide clarity to both providers of designated IPSs and RTSSs across a range of negotiating factors, including (but not limited to): terms governing the ability to generate advertising revenue; access to audience data; technical functionality; and brand attribution, as well as taking into account the full range of the BBC’s obligations under their Charter and Framework Agreement.