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July 18, 2008

Licence fee to go down after switchover

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by David Allen

The outgoing chairman of the broadcasting watchdog, Ofcom, has hinted that as soon as the digital switchover is completed, then there is a possibility that the TV licence fee will be going down in price.

According to Lord David Currie, the BBC received £800 million to help them with the costs of the digital switchover.

However, by 2013 the switchover will be complete throughout the UK and therefore the costs involved in keeping the equipment which keeps the analogue signal going, will no longer be needed.

As the BBC is a non profit organisation, the money received through the licence cannot lead to there being a surplus.

Therefore when the new licence fee settlement figures are crunched, this is where the savings will become clear and a reduction of the licence fee could be ordered.

This will leave the government to decide on either reducing the licence fee or allowing the BBC to spend more money on whatever they want to.

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