Ofcom announces new ITV licence review process

Ofcom have announced a consultation on its new approach to the review of licence terms for Channel 3 (ITV) broadcasters.
Ofcom plans to introduce a unified and streamlined process in order to reduce the regulatory burden of licensing regulation. The proposals recognise the important challenges facing the television industry in the years ahead, including the need to plan for digital switchover, the need to maintain public service broadcasting obligations and, importantly, the need for the timetable for the Channel 3 licence reviews to allow Ofcom to take full account of its PSB Review.
The regulator is proposing to align the licence review periods for all 16 Channel 3 licences so that all reviews can begin from December 31 2004. This would enable licensees to operate according to a consistent licensing timetable going forward.
Under previous plans, reviews for eight licensees could begin from December 31 2004, but the remaining eight would be delayed until early 2007.
The Communications Act 2003 allows Channel 3 licensees to ask for reviews of the financial terms of their licences from December 31 2004. Ofcom's consultation document sets out proposals to simplify the process for these reviews, to improve clarity and transparency and to reduce the regulatory burden upon broadcasters.
Ofcom is proposing to price all Channel 3 licences simultaneously by seeking to align the review periods of different licences; to complete the reviews by the end of June 2005 for any Channel 3 broadcasters applying on 31 December 2004; that licensees should be entitled to apply for a review only once during a review period; And, to reduce broadcasters'; information requirements for the reviews wherever possible, to bring greater simplicity and transparency.
Ofcom intends to publish a statement on the results of the consultation, including a decision on the final timetable for the reviews, by early April 2004. Views submitted on the general approach to the reviews will be incorporated into a second consultation, planned for June 2004, on a more fully defined proposition for the valuation methodology.
(GB)