ITV licence reviews 'to simplify'

Granada and Carlton are merging

Communications watchdog Ofcom plans to simplify the process for ITV to apply for reviews of its licences.

The proposals mean there would be just one review period for all 16 licences, instead of the current three separate ones, starting from 31 December 2004.

Ofcom decides how much ITV should pay for the licences and stipulates public service broadcasting criteria.

Granada and Carlton shareholders agreed last month to a £4.5bn merger under the name ITV plc.

Under the new proposals by Ofcom, ITV would be apply for all 16 licences at once, with reviews to be completed by June 2005.

Under previous plans, reviews for eight licensees could begin from December 31, but the remaining eight would be delayed until early 2007.

Investec Securities said Ofcom's announcement could see ITV's review costs reduced if they are all done at once rather than staggered over several years.

The new proposals, which will be subject to consultation, also aim to cut down the information required from broadcasters, making the process easier and more transparent.

Before Carlton and Granada's merger was rubber stamped, Carlton and Granada said job cuts across both companies were likely as part of cost-cutting measures.