BBC successful in DTT bid

The BBC / Crown Castle have been successful with their bid for the DTT licences formerly operated by ITV Digital, the ITC have announced this morning.

The bid composed an entirely free-to-view offering, including three channels from BSkyB, and required a change from the 64QAM mode to the 16QAM mode of operation.

The regulator sited the following main reasons for awarding the licences to the consortium:

• The opportunity provided by the consortium for a fresh start for DTT by offering a distinctive new proposition to consumers
• The consortium's top level resolve to launching and sustaining a service for the duration of the licence
• Their approach to addressing technical issues required to improve the performance of the platform
• The ambitious and clearly developed marketing strategy for the whole DTT platform
• The combination within the consortium of management strength-in-depth of its members and their ability and commitment to deliver the stated proposition and hence promote digital terrestrial television in the UK overall

The consortium's bid beat off competition from the DTT Alliance, comprising ITV and C4, which submitted a bid in conjunction with Freeview Plus, proposing a mixture of free-to-view and pay TV services. Also in the running was the Apax-backed Digital Television Broadcasting (DTB), which proposed a service of 40 free-to-view channels, and SDN, who wanted to operate a "managed" system, whereby interested content parties would apply for space on the multiplexes.

The ITC said that although the BBC / Crown Castle and DTA / Freeview Plus bids both put together "largely similar" free-to-view offerings, but the former proposed "slightly more channels in their free-to-air line-up."

"The Commission believes that the BBC/Crown Castle application is the most likely to ensure the viability of digital terrestrial television," said Sir Robin Biggam, chairman of the ITC. "It will target those viewers who have not been so far attracted by digital TV and will help facilitate the move towards digital switchover."

The ITC imposed the following conditions on awarding the licences to the consortium:

• Crown Castle must sub-license channel supply on multiplexes C and D on fair, reasonable and non-discriminatory terms (should the BBC choose to sub-licence capacity, the same would apply)
• BSkyB may supply the three channels named in the application on Multiplex C but may not manage a multiplex
• In pursuit of range and diversity, changes in channel line-up will need agreement from the ITC, as will any proposal to introduce pay services
• All technical aspects of the transmission roll-out and receiver specification are to be handled through The Digital Network (TDN) - or its successor - to ensure all-industry participation. There will be a non discriminatory requirement for kite marking boxes and it will be clear that technical specifications should not be used to achieve gateway control
• We will require the listings information which informs the Electronic Programme Guide (EPG) to conform to open technical standards. This would enable TV manufacturers to design their own presentation of programme listings

Stick with Digital Spy throughout the day for more on this story, including the first reactions from all parties.