If Ofcom1 is satisfied that the holder of a Channel 3, Channel 4 or Channel 5 licence2 has failed to comply with any condition of the licence3, or with any direction given by Ofcom4, Ofcom may serve on him5 a notice6:
(1) requiring him to pay, within a specified period, a specified financial penalty to Ofcom7; or
(2) reducing the period for which the licence is to be in force by a specified period not exceeding two years8.
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