Financial terms for Channel 3 licences: consultation on methodology for reviews

This statement sets out the valuation methodology for the review of the financial terms of the Channel 3, Channel 5 and Public Teletext licences.

Ofcom aims to achieve three policy objectives through the methodology set out in this document. First, Ofcom intends to determine a fair value for each licence, within the framework of the statute, and to set licence payment terms according to a fair and objective process. To the extent possible, the process should allow Ofcom to set payments that are reasonable within the context of the current market environment and that will continue to be reasonable for the duration of the licence. Second, Ofcom aims to improve the clarity and transparency of financial reviews by providing applicants with more information and guidance prior to the application date than was provided in the past. Third, Ofcom proposes to simplify the application process by reducing information requirements and providing licensees with greater assistance with the application process.