ITV said the new terms offered by Ofcom would reduce the annual cost of its 12 licences (including GMTV) from £215m in 2004 to less than £80m in 2005.
ITV chief executive Charles Allen said: "These terms mean a very significant reduction in licence payments for ITV this year, with further steady reductions to come."
Ofcom has given the broadcasters until July 25 to accept the terms. It said the total cost of licences would fall from £230m in 2004 to £90m under its new terms, but would only fall to £180m under the current terms.
For the Scottish and Grampian TV franchise holder, Scottish Media Group, annual costs would decrease from around £4.5m last year to between £1m and £1.5m this year.
Five has accepted Ofcom's proposal, saying the new terms will reduce its licence payment from £13m in 2004 to £9m in 2005. The Northern Ireland ITV franchise holder, Ulster Television, has also said it will accept the terms.
ITV and SMG have not yet confirmed they will accept, although it looks unlikely that they will refuse the offer.
Under Ofcom's formula, up to 95% of the payment due from each broadcaster is comprised of a percentage, set by Ofcom, of the advertising revenue attributable to analogue-only households. The remainder is comprised of a fixed cash sum.
As more households convert to digital, the level of variable payments will decrease, hitting zero when digital switchover is complete.
Andrew Flanagan, chief executive of SMG, said: "We're pleased that Ofcom have recognised that in the increasingly competitive world of multichannel television our licence fee tax costs had to come down. This settlement, along with the outcome of the Public Service Broadcasting Review, serves to secure the future of the Scottish TV and Grampian TV franchises to 2014 -- through digital switchover and beyond."
Ofcom said: "Since previous reviews in 1999-2001, the value of access to the analogue spectrum has declined significantly, with under 40% of UK households relying solely on analogue for their television viewing. As homes continue to migrate from analogue to digital, the share of advertising derived as a result of access to the analogue spectrum will continue to decline and the proportion of advertising revenue earned by analogue channels overall is likely to fall."
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