ITV says BBC wasting £50m by not joining its digital TV bid

LONDON - ITV and Channel 4 say the BBC could save £50m of licence-payers' money if the corporation joins their bid for the digital terrestrial licences formerly owned by ITV Digital.

ITV and Channel 4, which are bidding independently of the BBC after a disagreement about how many channels should be carried on the proposed new digital terrestrial service, have offered to undercut the broadcast fees the BBC would have to pay if its bid is successful.

The move comes just days after BBC director general Greg Dyke revealed that if the BBC's bid lost it would have to cut spending on its digital services.

Dyke's comments were viewed as an ultimatum to the Independent Television Commission, which will award the licences. It is not thought that a deal with ITV was what Dyke had in mind.

ITV and Channel 4 said they hoped the offer would put an end to the deadlock that caused the broadcasters to split.

The ITC is considering bids from: the BBC in conjunction with transmission business Crown Castle and BSkyB; ITV and Channel 4; and two other contenders believed to be backed by venture capitalists. It is expected to come to a decision on Thursday July 4.

Under the BBC's agreement with Crown, ITV says the transmission firm will charge the broadcaster £3.8m a year to broadcast each channel. The BBC will have to foot the bill for its four digital channels.

However, ITV says it will only charge the BBC £2.7m a year, which, over the 12 years of the contract, ITV says will save £51m of licence-fee payers' money.

ITV is understood to have told the ITC that it thinks Crown's charges are excessive, according to The Independent.

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