This consultation seeks views on a proposed timetable and general approach to the reviews of financial terms for Channel 3 licences. Ofcom intends to publish a statement on the results of the consultation, including a decision on the final timetable for the reviews. Views on the general approach to the reviews will be incorporated into a second consultation on a defined proposition for the valuation methodology.
The proposals set out in this document are intended to achieve two important policy goals. First, Ofcom proposes a significant simplification of the process for reviewing the financial terms of Channel 3 licences, which should help to reduce the regulatory burden on licensees and to improve the clarity and transparency of the process. Second, Ofcom proposes to offer Channel 3 licensees the opportunity to align the dates for review of the licences’ financial terms. There are 16 Channel 3 licences, and under previous plans, the dates on which licensees could seek reviews would range from 31 December 2004 to 31 March 2007. Ofcom’s proposed approach should help to promote a more consistent and predictable regulatory environment for Channel 3. Under the timetable now proposed, new financial terms will be determined by the end of June 2005 for licensees applying on 31 December 2004. This should help to ensure that the reviews take account of the latest available information on issues such as Ofcom’s review of public service television broadcasting and plans for digital switchover.