UK Terrestrial Broadcasters Could Face Extra Licence Fees

Terrestrial broadcasters in the UK may have to pay millions of pounds in extra licence fees, as media regulator Ofcom considers charges for spectrum used for digital terrestrial radio and digital terrestrial television.

The charge is designed to encourage broadcasters to use their spectrum more efficiently, and would bring broadcasters in line with other spectrum users such as the police and emergency services, who already pay.

According to draft proposals issued by Ofcom, the BBC could face charges of between £32 million and £48 million a year in 2014 for its two Freeview multiplexes. ITV and Channel 4 would pay between £8 million and £12 million each for their public service DTT slots, while ITV would be charged between £10 million to £20 million for the multiplex it owns since acquiring SDN.

The charges could mean the BBC would have to reconsider its attempt to secure an above-inflation rise in its licence fee (see BBC May Not Get Expected Rise In Licence Fee) because the Corporation calculated its monetary requirements based on the belief that it would have to pay a £300 million spectrum levy from 2007 to 2014.

Digital radio will be charged from 2012 followed by digital terrestrial television two years later, after switchover. Ofcom has invited stakeholders to submit their views and comments by 5pm Friday 27 October 2006.

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