Ofcom statement on INR renewals
Regulator Ofcom has published the result of its consultation on the fees for renewing the UK's 3 national radio licences.
Classic FM, talkSPORT and Absolute Radio are having their licences renewed for another 7 years, as announced in the Digital Economy Act earlier this year.
In the document, released today, Ofcom acknowledges the extra cost to Global, UTV and TIML of broadcasting its services on digital as well as analogue platforms.
At present, Classic FM pays a £50,000 annual licence fee, as well as a percentage of qualifying review (PQR) of 6%. talkSPORT and Absolute pay a £100,000 fee without the PQR charge.
Today's lengthy document sets out the methodology under which the financial terms will be set for the renewed licences. It states that the fees will be consist of an amount which, in Ofcom's opinion, would have been the cash bid of the licence holder were the licence being auctioned for the renewal period rather than renewed – plus a percentage of qualifying revenue (PQR).
Ofcom says it received responses to its consultation from three paries – presumably Global, UTV and TIML – but says the respondents asked for them to be kept confidential.
You can read the report, in full, [link=http://stakeholders.ofcom.org.uk/binaries/consultations/renewal-national-licences/statement/statement.pdf]here[/link].