Ofcom consults on Digital Replacement Licences

Ofcom today published a consultation document on the digital replacement licences (DRLs) that will take the UK's commercial terrestrial broadcasters through to a fully digital future.

Under the Communications Act 2003, Ofcom must offer DRLs to the current Channel 3 analogue licensees, Channel 5 and Public Teletext, to replace the current analogue licences. If accepted, the replacement licences must be issued before 29 December this year.

The procedure for replacing Channel 4's existing licence is different, reflecting its position as a statutory corporation. Ofcom is also consulting on a draft of Channel 4's DRL and the Channel 4 DRL will be issued before the end of the year.

The initial expiry date for each DRL is 31 December 2014.

The broadcasters currently hold analogue licences which allow them to broadcast their services in analogue format with an additional ability to broadcast on Digital Terrestrial Television. Conversely, DRLs are primarily digital licences with an ability to broadcast in analogue.

The proposals are intended to bring more certainty to the process that will enable the UK to achieve switchover from analogue to digital technologies in television broadcasting.

In April this year, Ofcom submitted its report, Driving Digital Switchover, to the Secretary of State for Culture, Media and Sport. The report set out a number of recommendations, including the creation of "SwitchCo", a body responsible for ensuring switchover by a specified date, and the provision of consumer information and advice.

In July, the Secretary of State announced that progress had been made in discussion between the Government, Ofcom and the public service broadcasters on the timing for digital switchover and that 2012 may be the most appropriate date for switchover completion. This could mean beginning the switching sequence as early as 2007.

Ofcom has carried out an extensive series of pre-consultation discussions with analogue and digital terrestrial licensees. The licensees were able to provide Ofcom with comments on some of its initial proposals for possible obligations relating to digital switchover to be included in the DRLs. Ofcom has taken account of these comments in preparing the DRL consultation document and draft DRLs.

Ofcom proposes to oblige holders of the Channel 3, Channel 4 and Channel 5 DRLs to achieve coverage that is at least substantially the same as existing analogue coverage. All licensees would also be required to:

Roll-out Digital Terrestrial Television to 1154 transmission sites
Co-operate with those organisations involved in the administration, organisation or implementation of digital switchover;
Comply with 31 December 2012 as a backstop date by which all licensees shall be obliged to cease broadcasting their analogue service.

The draft DRLs also include conditions implementing the new provisions in the Communications Act relating to the public service broadcasting remits of licensees and statements of programme policy.

The new remits and statements are not required as part of the replacement licensing process, but will follow upon completion of Ofcom's review into Public Service Broadcasting.

This autumn, Ofcom is also publishing a number of proposals that will have further implications for digital switchover:

The phase two report of its review into Public Service Broadcasting;
Methodology for calculating licence fees for Channel 3, Channel 5 and Public Teletext;
A consultation on spectrum pricing.

Meanwhile, Ofcom is working with broadcasters, Government, consumer groups and others to develop "SwitchCo".

The closing date for responses to the consultation on DRLs is 25 October. See Related Items for the full consultation document.

Ofcom consults on Digital Replacement Licences

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