Commentary on Sections Part 2: Networks, Services and the Radio Spectrum Chapter 1: Electronic Communications Networks and Services Section 97: Amount of penalty under s. 96
239.In deciding on the amount of a financial penalty under section 96, OFCOM are required to consider whether the penalty is appropriate and proportionate, and to take account of any representations made by the person concerned, and any steps taken by him to comply with the notified condition. The penalty shall not, in any event, exceed 10 per cent of the turnover of that person’s relevant business for the relevant period.
	*relevant business is defined in subsection (5) to (7) as, broadly, business consisting of the provision of an electronic communications network, electronic communications service or associated facilities,  and the supply of directories, directory enquiry facilities or electronic communications apparatus.  In the case of a penalty imposed for the contravention of an SMP apparatus condition, the relevant business is only the business consisting of the supply of electronic communications apparatus.
	*relevant period is defined in subsection (5) – subject to exceptions for providers who have not been carrying on business for a full year, or who have gone out of business - as  the period of one year ending on the 31 March preceding the notification.