The article stipulates that the holders of Channel 3 (ITV) and Channel 5 digital broadcast licences will not have a right of renewal at the end of a licence term, starting 2014. Other parties would then be free to bid for the licences.
The major TV companies are believed to be pressing for this article to be withdrawn and Murphy is adamant that the government’s stance is short-sighted.
“You have to take investment decisions that live on for years,” he said. “If this clause stands, that investment will not be made. The present system gives licence holders first refusal and provides an incentive to invest.”
