1.17
In the medium-term, a wider set of issues need to be resolved, which demand careful consideration now. Nations and regions services on ITV1 (including stv, UTV and Channel) may become increasingly unsustainable, even at a reduced level. By 2011, one or more of the ITV1 licensees may face a commercial decision to hand back their licences. However, Five’s public service contribution looks secure throughout this period, although pressure on its investment in original UK content may grow.
Martin Curry on 10 April 2008 at 2:09pm
If ITV, STV, UTV or Channel decided to hand back their licence, Ofcom should ensure that the the Channel 3 licence is readvertised and that potential bidders are informed that as well as the licence to transmit Channel 3, half of Mux 2 (or such portion of PSB 2 that the previous licence holder was allocated.)was also being awarded on the same terms as previously.
Obviously, given ITV's holding of SDN, it is more likely that ITV could hand in its licences and continue broadcasting, on Mux A/Com 1, than STV, UTV or Channel.
Ofcom should therefore take a more sympathetic approach to these three broadcasters' concerns, and in particular, UTV if it seeks to merge with TV3 in order to produce economies of scale.