13/06/2002

BBC and BSkyB to bid for free-to-air digital licence

The BBC is reportedly close to an agreement with BSkyB to launch a joint bid for the free-to-air terrestrial digital licence returned to the Independent Television Commission (ITC) after the demise of ITV Digital.

The BBC had been in negotiations with ITV and Channel 4 to launch a consortium bid for the licence of free-to-air television, but a joint venture between BSkyB and the national broadcaster is now the most likely option.

A spokesman for the BBC confirmed that it was "still talking to various people", but refused to elaborate. It is believed that Crown Castle Communications will provide the transmitter technology needed for the venture.

The reports of the BBC/BSkyB venture were not received well by ITV and Channel4, with one member of the consortium bid describing the move as "a very cynical manoeuvre by the BBC". It is understood that ITV and Channel 4 will continue to put together their rival bid for the licence.

According to reports, the licence-fee payer will help provide the BBC with funding for set up and it is envisaged that viewers will also pay £100 for the receiver. As part of the package, the viewer will receive BBC products plus Sky News, Sky Sports and Sky Travel, with the possibility of receiving Sky One.

For their part, ITV intend offering a 'pay-light' product as an alternative to the subscription packages, however Channel4 are said to be keen to maintain their E4 and FilmFour packages on a subscription basis.

Recent moves by providers such as ntl – who bought ITV Digital's customer lists from Deloitte & Touche last week – indicate that the digital viewing audience could yet be swept up by another broadcaster.

With the deadline for submissions on 5pm on Thursday June 13, the ITC will announce the preferred bidder on July 4.

(GMcG)

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