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Introduction
Freeview is the brand name for a package of subscription-free digital television and radio services, including the BBC's channels, which can be received through a television aerial (digital terrestrial television). The BBC worked with Crown Castle (a company involved in digital terrestrial transmission) and BSkyB to develop Freeview, which was launched in October 2002. The BBC plans to spend between £128.4 million and £138 million on Freeview[1] up to 2014 to ensure that people can, and are aware they can, receive BBC digital services without paying a subscription fee. The BBC is also investing in Freeview to increase the number of licence fee payers watching the BBC's digital services and hence to improve the value for money these services offer.[2]
The BBC's digital services are also available on satellite and cable, although the BBC sees Freeview as the key influence on increasing overall digital take-up and expects that Freeview will be in 9.4 million homes by 2014.[3] The Government is planning to switch off analogue terrestrial television signals and ensure that everyone who currently receives the public service channels (BBC 1, BBC 2, ITV1, Channel 4, S4C and Five) in analogue can receive them in digital. Following discussions with the public service broadcasters, the Government has stated that 2012 may be the most appropriate date for the completion of digital switchover, and that this switch from analogue to digital could start in 2007.[4]
On the basis of a Review by the Comptroller and Auditor General, and the BBC Governors' comments on that review, we took evidence from the BBC on its achievements to date from investing in Freeview and on priority areas to address as Freeview goes forward. The Comptroller and Auditor General's review was carried out under an arrangement agreed in 2003 between the Government and the BBC in the context of Parliament's consideration of the Communications Bill.[5] Under the arrangement, the BBC Governors' Audit Committee and the Comptroller and Auditor General agreed a programme of value for money reviews, to be carried out by the National Audit Office, covering the period up to December 2006, when the current BBC Charter expires. The Comptroller and Auditor General submits reviews to the BBC Governors' Audit Committee which, in turn, presents them to Parliament.
In taking evidence from the BBC, we also considered the question of the Comptroller and Auditor General's future access to the BBC.
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