Ofcom will employ the following methodology in carrying out all of its Market Impact Assessments. This methodology has been agreed by Ofcom and the Trust, in accordance with section 30 of the BBC Agreement. It is likely that the methodology document will be updated periodically, as Ofcom's experience in undertaking MIAs grows.
The new BBC Royal Charter and Agreement, which came into effect on 1 January 2007, provided for the establishment of a new Public Value Test (PVT) regime. The PVT must be applied before a decision can be taken to make any significant change to the BBC’s UK public services, which can include the introduction of a new service or the discontinuation of an existing one.
Under the new regime, the decision on whether to authorise such a change will be made by the BBC Trust (the Trust), following the application of a PVT. In reaching a decision on a PVT, the Trust must take into account the findings of two separate reviews:
This document sets out the approach which Ofcom intends to take in carrying out MIAs. It represents our current view of best practice, and is likely to be updated as our experience in conducting MIAs grows.
The guidelines set out below are intended to inform stakeholders about the approach Ofcom will take to MIAs. We may depart from this approach in particular cases but if we do so we will explain why.