Jeremy Hunt drops plan for local TV 'spine'

Culture secretary Jeremy Hunt has officially confirmed that he is dropping plans to launch a new national "spine" channel for delivering local TV across the UK.

Publishing his final proposals for invigorating the local TV sector yesterday, Hunt said that he now intends to allocate digital terrestrial television spectrum to local TV providers to offer services.

The package of geographic interleaved spectrum will be allocated and managed by a new licensed multiplex company, which will be required "to build and operate the necessary multiplexes to carry separately licensed local TV services".

Hunt said that the number of local TV services supported will depend on spectrum coverage and commercial sustainability. Ofcom will handle the licence award process, and the channels will be given prominent numbers on digital TV electronic programme guides, including Freeview, cable and satellite platforms.

The culture secretary believes that local media is "a vital part of local democracy," with local TV offering "great scope to contribute to growth in our creative industries, develop local journalism and help bring communities together around a shared voice".

Hunt said in a written ministerial statement: "The proposals include three statutory instruments: the first, to reserve sufficient local, low-cost spectrum for carrying the local TV services; the second to create a proportionate and targeted licensing regime for the spectrum and local TV service operators; and the third, to secure appropriate prominence for the licensed local services in television electronic programme guides.

"Local TV will provide news and other content for local audiences helping to hold local institutions to account and providing proper local perspectives. This framework offers the right incentives to the market to develop innovative business models; provides greater certainty and reduced risk for investors; and encourages new market opportunities and growth."

As previously announced, the infrastructure costs for local TV will be met from the £25 million allocated as part of the BBC's new licence fee settlement agreed last year. A further £5m of licence fee cash will be spent annually for three years on local content.

Hunt said that his framework does not include the national Freeview channel first proposed in January, but he said that local TV businesses "may come together into a network if that makes commercial sense".

Bidders for the licences will have to make their case for collaboration to Ofcom. It is expected that the first local television licences will be awarded by the media regulator from summer 2012.

Last month, local TV bidder Channel 6 put forward a scheme using 'Geographic Interleaved' signal-buffering spectrum that it claimed would support "up to 200 completely independent local TV stations".