The current BBC Royal Charter and Agreement, which came into effect on 1 January 2007, established a Public Value Test (PVT) regime to assess whether the BBC’s proposals to launch new services in future – or to amend existing services – would be in the wider public interest.
As part of the PVT, Ofcom carries out a Market Impact Assessment (MIA), the purpose of which is to assess the likely impact of the proposed services on products and services which are substitutes or complements with the proposed BBC service.
This document sets out the findings of Ofcom’s second MIA to be carried out in the context of the new PVT regime. It considers the market impact of the BBC’s proposed High Definition television (HDTV) channel. The MIA has been conducted in accordance with the Terms of Reference agreed by the Ofcom-BBC Trust Joint Steering Group, and with the MIA methodology agreed between Ofcom and the BBC Trust.