Select Committee on Culture, Media and Sport Minutes of Evidence


Further supplementary memorandum submitted by the Head of Public Affairs, BBC

  BBC estimates for spectrum charging provided to the Select Committee were:
2012-13£120 million (2 SD multiplexes)
2013-14£180 million (3 multiplexes)


  The assumptions underlying this were:

    —  DTT multiplex charging of £60 million per annum per mux.

    —  Charging comes in post-switchover for both BBC muxes (although the BBC could face charging for mux 1 from 2010).

    —  Although the BBC should only need two thirds of a mux for HD simulcasts of BBCs 1 & 2 (the minimum effective DTT offering), if technology doesn't advance as fast as we expect, we may need an entire mux just for HD, hence 3 muxes charged from 2013-14.

  As Ofcom are still deliberating on how much broadcasters ought to pay for DTT muxes, and we're unlikely to have a steer on this until the end of the year, the estimated annual cost per mux was based on Ofcom's consultation on spectrum pricing (29 Sept 2004) [6]which confirmed the March 2004 report by Indepen et al[7], which suggested a charge of £57 million per mux would be appropriate.

  The estimates supplied for charging do not take account of the auction price for the released spectrum needed for an HD mux (which could result in a higher price than £57 million) or for spectrum charging for PMSE (digital wireless cameras, radio mics etc) usage nor for spectrum for Radio.

19 October 2005




6   http://www.ofcom.org.uk/consult/condocs/spec-pricing/spec-pricing/spec-pricing.pdf (p45) Back

7   http://www.ofcom.org.uk/research/radiocomms/reports/independent review/spectrum pricing.pdf Back


 
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Prepared 24 November 2005