The new system is a web-based licensing service as an alternative to the postal service and will issue electronic licences to users online, free of charge. Licensees must confirm their licence details at least once every 10 years.

The need to display the licence disc has been removed however a copy of the licence must be kept on board the vessel.

Ofcom will continue to make paper licences available for applicants who do not have access to, or prefer not to use the internet. However, those applying via a paper application will be subject to a £20 charge.

All valid licences with be replaced with new free lifetime licences from December 2006.

Applicants that wish to apply for a licence before October 2006 will need to pay for their licence as usual. Those applying for a licence during October/ November 2006 will be sent an annual licence which they will not be required to pay for. The new annual licence will cover the short period until the new lifetime licence is issued through the post.

Further info at http://www.ofcom.org.uk/media/mofaq/rcomms/ship/