Ofcom suggests auctioning ITV and Channel 5 public service licences
Ofcom has mooted the possibility of auctioning off ITV and Channel 5's public service broadcasting licences.
The Channel 3 and Channel 5 licences run until 2014 and entitle the broadcasters to prominent positions in the Electronic Programme Guide.
In a report Ofcom described an auction as "credible" and said it "could offer benefits to citizens and consumers".
The media regulator said: “Re-auctioning could test whether potential bidders, including the current licensees, would be able to bring forward alternative models of PSB delivery. An auction would also offer an opportunity to restructure the licensing map to reflect more accurately national and regional identities within the UK."
Auctioning off the licence held by ITV "had the potential to reinvigorate the existing Channel 3 model," Ofcom said.
It added that auctioning Channel 5 "would clarify whether a new bidder could offer a more significant commitment to original content production or important areas of public service content than the current licence holder".
The Secretary of State for Culture, Media and Sport will consider whether to renew the existing licences for another 10 years, to extend them for a shorter period until the Communications Bill is passed or to open them up to bids.