As already reported on Newsline today, the digital terrestrial TV licences for multiplexes B,C and D have been awarded to British Digital Broadcasting PLC, jointly owned by Carlton Communications and Granada Group.
The licence to provide the service on the Guaranteed Place Multiplex has been awarded to Digital 3 and 4 Ltd, representing ITV and Channel 4. The ITC was, however, disappointed with the lack of depth of this proposal and is expecting further and more detailed proposals on using the additional capacity on the multiplex and for promoting the acquisition of the equipment to be forthcoming.
The ITC is still considering the application by S4C Digital Networks Ltd for multiplex A as there are still some financing details which the ITC wishes to clarify. The Commission hopes to announce its decision on this by the end of July.
In assessing the applications, the ITC had to decide which bids could be calculated to promote the development of digital terrestrial TV. In order to do this, the ITC looked at 5 main factors:
1 Coverage and programme service timetables.
2 Ability to establish and maintain the services.
3 Capacity of the programme services to appeal to a variety of tastes and interests.
4 Promoting the acquisition of receiving equipment by viewers.
5 Contracting with service providers on the basis of fair and effective competition.
Looking at the most talked about bid, the award for multiplexes B, C and D, the ITC considered that BDB’s application offered a greater deal of assurance than DTN’s that the proposed services could be established and maintained for the licence term. DTN’s business plan was dependent on its parent company raising further debt. Sir Robin Biggam, chairman of the ITC, said that both bids contained acceptable programme proposals, but BDB’s services were seen to have broader appeal.
BDB will continue to rely on BSkyB for programming output as this remains part of the core proposals of BDB’s application. In addition to this, BDB is in advanced discussions with British Interactive Broadcasting, which is owned by BT, BSkyB, Midland Bank and Matsushita Electric, about supplying interactive services like home-shopping and banking. Sky is also launching digital satellite TV in the autumn, so it is still very much a big player in the digital age. Meanwhile, Granada and Carlton will now wield immense power in the industry. In addition to its 50% stake in BDB, Granada Group own three ITV franchises, Granada, YTTV and LWT, and 60% of Granada Sky Broadcasting. Carlton also own three ITV franchises, Carlton, Central and West Country, and two cable and satellite channels, Carlton Select and Carlton Food Network, as well as 50% of DTN.
ITC: 0171306 7743
