Digital firms want TV licence fee cut

Digital firms want TV licence fee cut
Political Correspondent The government is to be urged to cut the television licence fee for viewers who sign up to multi-channel digital TV services. This would speed up the conversion of millions of TV sets in the UK from the current analogue system to the new digital standard. The proposal is being drawn up by firms promoting digital TV including the manufacturers of set-top boxes and Rupert Murdoch’s BSkyB which launches its first digital service later this month. The firms claim it could provide the government with billions of pounds in extra revenue if the conversion to digital was quicker and more comprehensive than the 12 to 13 years currently expected. The revenue would be generated by the quick sale of analogue spectrum currently used for TV to mobile phone companies. The firms want to dramatically cut the current ?97.50 licence fee for homes that take digital services. But it is being opposed by the BBC who would risk losing millions of pounds in revenue from the licence fee – its main source of cash. The main block to a fast closure of the analogue frequencies are TV advertisers who argue that they should remain available until 90 per cent of viewers have switched over. A spokesman for Culture, Media and Sport Secretary Chris Smith said the proposal would be considered carefully.


Leave a Reply

Your email address will not be published. Required fields are marked *

*