TV companies could have new digital switch costs

2 August 2006

Producing content for digital TV and radio could prove more costly if new proposals by media regulator Ofcom are adopted.

The regulator wants broadcasters to start to pay a fee for using the digital airwaves.

No fee is currently in place for television broadcasters, although the emergency services do have to pay for using digital frequencies.

The BBC has already claimed that it would be hardest hit by the charges, with Ofcom suggesting that the corporation should pay £32-48 million a year, beginning in 2014.

Ofcom is hoping that putting the charges in place will force broadcasters to use their portion of the frequency efficiently.

The proposals will now be the subject of a public consultation, due to be closed in October.

Rules governing news output on television channels may also be reviewed by the regulator.

Currently, all public service broadcasters are obliged to carry news as part of their services, but Ofcom said this may have to change in the light of the new digital TV environment.

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