Britain readies replacements for ITV Digital

The British government said today the collapse of ITV Digital would not stop other industry players from stepping into Britain…

The British government said today the collapse of ITV Digital would not stop other industry players from stepping into Britain's digital television market and making it work.

"My contacts with the industry suggest that there are established and new industry players wanting to have a go at making this proposition work," Culture, Media and Sport Secretary Ms Tessa Jowell told parliament.

"They will now go forward either to the administrator or will be able firm up their expressions of interest as part of any . . . re-tendering of licences," she said.

ITV Digital's administrators began a "fire sale" of its assets yesterday after failing to find a buyer for the business or do a deal with its main creditor, the English Football League.

READ MORE

The league, representing the 72 clubs outside the elite premier division, is owed £178.5 million pounds sterling for broadcast rights.

But the government has ruled out a state rescue for the operation, which was owned by Granada and Carlton Communications.

ITV Digital's collapse is a blow to Britain's ambition of becoming the world's first fully digital TV nation and could spell doom for dozens of English Football League teams, owed millions of pounds.

Many of the 72 clubs in the English first, second and third divisions, already under financial pressure from soaring costs and player wages, now face bankruptcy as the prospect of receiving any of the money owed to them by the pay-TV channel becomes increasingly remote.

PA