Ofcom launches Channel 3 licence consultation

Ofcom has announced plans to launch a new "unified and streamlined process" for renewing the 'Channel 3' licences used by the ITV1 network.

There are currently sixteen analogue 'Channel 3' licences, with varying renewal periods by dint of their differing expiry dates. This situation is a holdover from the time when ITV was a network of regional broadcasters. With consolidation, the ITV1 network will eventually be comprised of a merged Carlton-Granada entity, the SMG-owned stations in Scotland, along with UTV and Channel Television.

Ofcom is proposing to bring all the renewal review periods into line with all reviews beginning from the end of this year, effectively unifying the end dates of the licences. The regulator is empowered by the Broadcasting Act of 1990 to do so as long as the licencees agree. The incentive is that licencees would then be able to "operate according to a consistent licensing timetable going forward."

The regulator notes that changing the expiry date of the analogue licences would not affect the duration of digital replacement licences, which Ofcom is required to issue by the 2003 Communications Act.

If the licencees agree, Ofcom would propose that they could submit applications for licence reviews - where the regulator determines new financial terms for the period of the renewed licence - by December 31. Ofcom would then, in June, come up with the new financial terms (the percentage of qualifying revenue the broadcaster needs to pay during the term, along with a lump annual cash sum) for the licence. On January 1 2005, the new fixed annual sum would take effect, with the new PQR taking effect at the start of the licencee's new accounting period.

Ofcom is asking for your views on the matter. A consultation has been opened, with details available on the regulator's website.