Ofcom Issues Guidelines On TV Licence Renewal

UK media regulator, Ofcom, has today issued a statement that outlines the approach it will take to determine a fair renewal price for Channel 3, Channel 5 and teletext broadcast licences.

In accordance with The Communications Act 2003 and Broadcasting Act 1990, Ofcom is required to set a cash value for the licences as if they were being auctioned for new by determining a fair value for each licence, improve the clarity and transparency of financial reviews and simplify the process.

The cost of the licenses will include the broadcasters public service obligations, advertising revenue and the licensees’ participation in the digital switchover process.

In the report, Ofcom, has also agreed to align the financial review dates for the various licences held by Channel 3. The commercial broadcaster can now apply for reviews from 31 December 2004, as can Channel 5 and teletext.

In a statement this morning, ITV said in response to Ofcom’s announcement: “ITV plc welcomes Ofcom’s publication of the methodology for the review of financial terms for Channel 3 licensees. ITV looks forward to discussing further with OFCOM the methodology and assumptions that will be used in this process ahead of any or all licensees applying for a review of their financial terms from the end of this year.”

Ofcom: 020 7981 3040 www.ofcom.org.uk

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