This new marketplace, with its huge increase in capacity, will contain many challenges for the regulator. We have already seen in the last few years a growing emphasis on the economic aspects of our regulatory remit. The ITC has a duty, under the Broadcasting Acts of 1990 and 1996, 'to ensure fair and effective competition in the provision of television programme services and services connected with them'. The digital age with its three broadcasting platforms and a diverse range of services brings this duty sharply into focus. An immediate concern is to ensure the proprietary technology is not used to restrict the viewers' ability to switch between platforms and indeed to discourage viewers from choosing any.
We believe that the regulators involved have a fundamental responsibility to the viewer in order to ensure that technology is not a barrier to entry into the digital age.
The Commission is already involved in competition enquiries and the supply of programmes within the cable and satellite industries. In particular a major review of the way in which channels are bundled is being undertaken to see if the present arrangements operate in the interests of viewers. The result of this enquiry will be available during the second quarter of this year.
This regulating role is carried out like all of the Commission's activities in the overall interests of viewers. We are not in the business of trying to shape market forces or of denying enterprises the fruits of their commercial success. Our concern is to ensure that there is fairness and no abuse by any of their market position.
There is an equally significant role for the television regulator in this period of change in terms of maintaining quality. We regularly read of the 'dumbing down' of the traditional television services in the UK. It is our responsibility as a regulator to ensure that the commercial broadcasters continue to fulfil their licence commitments in terms of diversity and continued high quality even if, with increasing competition and capacity in broadcasting, it is only natural that the traditional broadcasters have to strive to retain maximum audiences for their programmes. We must not let go of the values of British television, which have enabled it to develop a reputation second to none for quality programming.
Traditional free-to-air broadcasting services still account for 88 per cent of viewing hours and our research continues to show that the viewer expects and appreciates the diversity in output which characterises these channels.
Regional diversity is also important and especially in the light of the political debate on devolution. The ITC has never been a London based regulator, with 11 National and Regional Offices and Commission Members deliberately selected to cover the whole of the United Kingdom. The ITV Network has its roots in regional licensees and even the recent consolidation of ultimate ownership makes no difference to this. We require regional programming specific to each licence area and we find no resistance to this from our licensees. They well understand the attraction of regional programmes to local viewers. Under the devolution legislation, it is proposed that broadcasting remain a UK based activity. But the ITC is ready to develop new harmonious relationships with devolved institutions. We have our National Members for Scotland, Wales and Northern Ireland. Their input is vital. They are also well placed to provide a link between the new institutions and the ITC.
In addition, the Commission undertook, in 1997, a review of its regional representation and affirmed the importance of that regional structure to its activities. Our 11 regional offices not only provide close liaison with licensees in their area but are also a focal point for viewers, not least our Viewer Consultative Councils. These enable ordinary viewers to make an important contribution through their views on television content direct to Commission Members and senior staff.
As always, the end of the year brings with it changes in Commission Membership. Two of our longest serving Members Roy Goddard and Eleri Wynne Jones reach 'retirement'. Eleri will be with us for the first few months of 1998 until a new Member for Wales is appointed but it is appropriate that I should record my thanks to her and Roy in this Report. Both have served on the ITC since its inception. They have been through the 1991 franchise round and innumerable other challenges. They have been indefatigable, resilient and good humoured. All their colleagues on the Commission will miss them greatly.
We have welcomed to the Commission Sir Michael Checkland. I hope that he feels that a lifetime at the BBC stands him in good stead for the challenges of commercial television! We are already appreciating his contribution.
Nineteen ninety-seven was a momentous year for the ITC and for British broadcasting; I must end with the Commission's thanks to Peter Rogers, his senior management and all the staff. They have remained remarkably equable in the face of many pressures and have risen to all the challenges which a changing industry has brought to them.
SIR ROBIN BIGGAM
Chairman
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