ITV and Channel 4 have formed the Digital Terrestrial Alliance, which has put in bids for multiplexes B and C.

The pair started their application by saying they have "pleasure" in submitting the bid to the ITC, each of which they ask is conditional on being simultaneously awarded the other. "Digital3&4" would be name of the multiplex operator. The bids are being submitted in confunction with "Freeview Plus," a lite Pay-Tv outfit offering that has applied to operate Multiplex D.

"We have not prepared a joint bid with the BBC because we have had differing views about the relative attractions of an entirely free-to-air DTT offering versus a strong free-to-air offering coupled with a limited pay offering," the application explained. "It has not been possible to reconcile these differences in the short time available before the deadline for submission of our applications. However, should the ITC accept our applications and that of Freeview Plus for multiplex service licence D, we have reserved bandwidth for the planned additional services from the BBC, of which we were made aware during our discussions with them. Given that the conditionality of our application involves all three multiplexes, we have of necessity made space for the BBC channels to accommodate the best combined free-to-air and pay offering for the platform."

It continued: "ITV and Channel 4 share the belief that the additional DTT capacity now applied for should not be populated entirely by free-to-air channels. Nearly half of the available DTT capacity is already reserved for the five terrestrial broadcasters. There is room, both on the platform and in viewers’ preferences, for a number of further free-to-air services to be offered. We believe however, that viewing to the platform (and therefore its ultimate success) will be maximised if these additional free-to-air services are complemented by a small pay offering. Channel 4 has operated two pay services on the DTT platform to date, E4 and FilmFour, and wishes DTT to have a pay element going forward to continue distribution of these services on the platform. We do not believe the Freeview Plus proposition for pay services can or will repeat the mistakes of ITV Digital. It will instead represent a true low-cost alternative to the plethora of services available on the digital satellite and cable platforms for the 60% of households who have yet to acquire multichannel television. DTT can provide a choice to the large proportion of these households that may want pay television but are not able to afford the high charges of the cable and satellite platform operators."

If successful, the multiplexes would be operated in the transmission mode of 16 QAM, which would improve signal but decrease the number of channels per multiplex. "Our fundamental reason for proposing this change is that we believe the re-establishment and development of the DTT platform will be better served by viewers having access to a reliable, robust service," the proposal explained.

Channels on the service would include ITV Extra -- an enhancement of ITV programmes (more here, a Boomerang/CNN/TCM hybrid from Turner, a British Eurosport/Eurosportnews hybrid, and a new music station from EMAP.

The proposed multiplex lineup:

Channel 3 / Channel 4 Multiplex: ITV1, Channel 4, ITV News Channel, Channel 4 Interactive, TeleText

Multiplex B: ITV2, ITV Extra/TeleText, TCM/CNN/Boomerang, Big City Music, The Film service (pay channel), British Eurosport/Eurosportnews

Multiplex C: E4 (pay channel), FilmFour/attheraces (pay channels), BBC Four, BBC Interactive 1, BBC Interactive 2, BBC Parliament/Radio