Forthcoming Digital Britain report could remove the BBCs monopoly license fee

The final Digital Britain report that will soon be released could see the BBC losing its license fee monopoly for the first time ever.

The recommendation that part of the BBC’s yearly revenue be used to provide universal broadband throughout the UK and fund ITV news services regionally is likely to be advised by Stephen Carter, the Communications minister in his report on the future of communications and broadcasting.

Prior to the digital switchover that is due in 2012, ITV has said that wants its requirement to provide regional new as laid out in its broadcasting licence to be removed as it cannot afford to continue offering the service.

Ensuring that TV audiences have multiple providers of regional news coverage, however, is something that media regulator Ofcom feels is important to maintain.

Part of the digital excess from the BBC’s license fee should be allocated to the funding of the broadband for all scheme said Lord Carter, who advised in his interim report that broadband access of 2Mbps or more for everyone in the country was a main priority.

He said “Our planning assumption is that there is a surplus and it will be a primary contributor to a universal service help scheme.”

The six year license fee settlement that started back in 2007 included £800 million, which was to supply set-top boxes to the disabled and elderly in order to help them to switch to digital in 2012, and this is where the surplus funding is expected to come from.

If the take-up rates from the funding maintain there current levels there should be about £250 million left over from the fund.

The automatic “siphoning off” of this surplus for “causes and commercial players” is something that the chairman of the BBC trust, Sir Michael Lyons has publicly advised against.

Source – www.telegraph.co.uk