Channel 4 could get share of licence fee in Ofcom report

LONDON - Channel 4 could move a step closer to getting a slice of the BBC's £2bn licence fee this week when Ofcom publishes the second phase of its Public Service Broadcasting review.

The "top-slicing" option, which will boost Channel 4's programming budget and financial security, is expected to be one of a few recommendations that the regulator will put forward on the future of public service broadcasting in the UK.

Channel 4, a government-owned public service broadcaster, has made no secret of the fact that it is considering its future position in the UK's broadcasting market.

The channel has admitted to holding merger talks with terrestrial rival Five, and unlikely speculation in this weekend's papers also suggested the television station is considering a bid to take control of one of the BBC's flagship radio stations, Radio 1.

While the Radio 1 idea seems far-fetched, Channel 4 is working on the launch of a digital radio station as a joint venture with radio giant UBC. This is being talked of as a rival to the BBC's Radio 4.

Channel 4 is also working on the introduction of another digital television station More4, are just some of the items on the agenda of new chief executive Andy Duncan for next year.

The public service broadcasting report from Ofcom this week will be advisory and in no way final, but will influence the BBC Charter Renewal, to be decided next year.

It will also affect the future of ITV's public service broadcasting obligations and the number of hours of religious and children's TV content the operator is obliged to transmit.

ITV's chief executive Charles Allen has been lobbying Ofcom to decrease ITV's public service programming obligations to those areas, in the hope of monetising ITV's airtime more effectively.

Allen has in the past said that ITV should get some licence fee money to help fund its public service commitments.

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