ITC awards free-to-air DTT licence to BBC/BSkyB

The BBC and BSkyB have been successful in their bid for the free-to-air DTT licence held by the Independent Television Commission (ITC).
The decision, which was announced this morning, will see the broadcasters – also backed by transmission company Crown Communications – provide 24 free-to-air channels, including three BSkyB channels; Sky One, Sky Travel and Sky Sports.
Sir Robin Biggam, chairman of the ITC, said: "The Commission believes that the BBC-Crown Castle application is the most likely to ensure the viability of digital terrestrial television. 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 made the awards after a three-week assessment involving consideration of finance, programming, technology, ownership and competition issues.
BBC director general Greg Dyke welcomed the news saying: "This is a fresh start for digital television in the UK and the best outcome for viewers. It won't be an easy task - the platform has been through a major crisis - but we believe that a simple, entirely free-to-view digital option has the best chance of success with consumers."
A spokesman for the Digital Terrestrial Alliance (DTA) – the joint bid from Granada, Carlton and Channel 4 – insisted that theirs was still the superior bid.
“The DTA bid brought together the most attractive free-to-air channel line-up with an optional upgrade to pay. We remain convinced that digital customers want the option of a pay-TV upgrade and that our proposed combination of an extended free-to-air offering, including channels from all the UK’s leading broadcasters, and a modestly priced, ‘lite’ pay-TV package represented the best chance of success for DTT.”
Viewers to the new DTT platform can expect to pay £100 for a set-top box to decode transmission signals but the programmes are free.
However, in the rundown to the ITC decision, Greg Dyke said that there may be an opportunity for rival bidders such as Channel 4 and ITV to offer some pay-TV programming.
The move will please the government who are keen to see digital adopted by the British viewer before the switchover deadline of 2010. Mr Dyke had pledged to plough up to £15 million into an advertising campaign promoting that timetable.
The government has pledged not to make the switchover from analogue until digital is active in 95% of households. However, a Department for Culture, Media and Sport study revealed this week that this is still a long way off with about 60% of viewers solely receiving analogue.
ITC, www.itc.org.uk
(GMcG)