18 July 2008
When the digital switchover is complete in the next five years, the licence fee will drop, watchdog Ofcom has stated. Head of the organisation Lord David Currie stated that money currently being used to pay for the movement away from analogue will not be needed after this time period and charges can therefore be lowered. Because a review is set to take place into the cost of the licence in 2013, the government will have to decide what to do with a surplus of cash - which could also lead to the creation of new services. Ofcom added that the BBC may harm the market because of the dominance it has over competitors. BBC Trust chairman Sir Michael Lyons had said that the digital cover costs added to the licence fee are a "myth" but Lord Corrie disputed this. He noted that it is an "inconvenient truth" and gave the advice on what the money can be spent on in the future. The BBC Chairman made his comments at a recent speech that took place in London.
© 2008 Adfero Ltd
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