BBC and BSkyB prepare joint bid for free-to-air digital licence

The BBC is reportedly close to an agreement with BSkyB to launch a joint bid for the free-to-air digital terrestrial licence returned to the Independent Television Commission (ITC) after the demise of ITV Digital.
The BBC had previously been in negotiations with ITV and Channel4 to launch a consortium bid for the licence of free-to-air television, but a joint venture between BSkyB and the national broadcaster is now the most likely option for the corporation.
A spokesman for the BBC confirmed that it was "still talking to various people", but refused to elaborate. It is believed that Crown Castle Communications will provide the transmitter technology needed for the venture.
The reports of the BBC/BSkyB venture were not received well by ITV and Channel4, with one member of the consortium bid describing the move as "a very cynical manoeuvre by the BBC". It is understood that ITV and Channel4 will continue to put together their rival bid for the licence.
According to reports in The Times - owned by News Corporation which also owns a 36% stake in BSKyB - the licence-fee payer will help provide the BBC with funding for set up and it is envisaged that viewers will also pay £100 for the receiver. As part of the package, viewers will receive BBC products plus Sky News, Sky Sports and Sky Travel, with the possibility of receiving Sky One.
For their part, ITV intend offering a 'pay-light' product as an alternative to the subscription packages, however Channel4 are said to be keen to maintain their E4 and FilmFour packages on a subscription basis.
However, recent moves by providers such as ntl – who bought ITV Digital's customer lists from Deloitte & Touche last week – indicate that the digital viewing audience could yet be swept up by another broadcaster.
The deadline for submissions in 5pm on Thursday June 13, and the ITC will announce the preferred bidder on July 4.
BBC, www.bbc.co.uk
Sky, www.sky.com
(GMcG)