19 June 2007

Ofcom will charge for “gifted capacity” in 2014

The BBC, ITV and Channel 4 will all be charged an annual administered incentive pricing fee for their digital television and radio spectrum from 2014. Ofcom say the measure – which could see the BBC paying £48 million each year for its two Freeview multiplexes – will improve efficiency by discouraging wasting capacity… in reality this will most likely lead to a deterioration in quality as broadcasters attempt to squeeze all they can out of the bandwidth they can afford.