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Dept for Culture Media and Sport

Answer

Mr. Don Foster: To ask the Secretary of State for Culture, Media and Sport what estimates of the market value of the released analogue spectrum available after digital switchover informed the Cost Benefit Analysis of July 2003; whether her Department has made subsequent estimates; and if she will make a statement. [194663] Estelle Morris: The Cost Benefit Analysis model developed by Government economists for digital switchover does not make an estimate of the market value of the released spectrum. As is standard in CBA methodology, economists have used estimates of the value of the consumer surplus that would be created by the new services which use released spectrum. We made the simplifying and conservative assumption that the providers of the new services would cover their costs. The assessment of the consumer surplus is based on estimates of consumers' willingness to pay, using evidence from a revealed and stated preference survey. Consumers are asked to value services, some of whose features are novel and potentially available only in the future. The results give estimates with a wide range. The Cost Benefit Analysis of Digital Switchover published by DTI and DCMS in September 2003 and is available at www.digitaltelevision.gov.uk. This showed that the quantifiable benefits of switchover were in the region of £1.5--£2 billion in net present value terms for the central case. Further work to refine estimates of the costs and benefits of switchover continues. This includes incorporating the results of a fresh consumer survey undertaken in spring 2004. The updated cost benefit analysis will inform the decisions on how and when switchover should be implemented.

Secondary information

Type

Written question

Reference

194663; 426 c769-70W;426 c773-4W

Session

2003-04

Subjects

Broadcasting Digital broadcasting Broadcasting reception Radio frequencies Television

Link

View this Written question on www.publications.parliament.uk