Carlton calls for deadline to switch off analogue

Gerry Murphy, chief executive of Carlton Communications, yesterday urged the Government to set a switch-off date for analogue broadcasting and signalled that seeking a third partner to join ONdigital, which is co-owned with Granada, was a possibility.

Asked whether Carlton was in favour of introducing new shareholders into ONdigital, Mr Murphy said: "We are pretty open-minded. If new shareholders could bring tangible benefits – for example, extra clout in distribution – then the current shareholders might support that."

He was, however, quick to emphasise that Carlton and Granada could go it alone. "Are we depending on [finding a partner] for progress? No we are not. Our financial capacity is sufficient to see ONdigital through to break-even."

He added: "This business isn't about one ownership model. We genuinely believe we have something unique here and that is mass market pay-TV with the support of a leading free-to-air TV channel."

His remarks follow a period of turmoil about ONdigital's future after a leaked letter to the Prime Minister by Charles Allen, chairman of Granada, said that his company could fall prey to an overseas predator if delays in loosening media ownership rules stopped it from merging with Carlton. Mr Allen also said that shareholder pressure could lead to the closure of ONdigital, which is expected to cost £1.2bn before breaking even in 2003.

Mr Murphy also indicated that the Government had a role to play in ensuring the spread of digital broadcasting. And he maintained that digital terrestrial, which has attracted 1.1 million subscribers compared with more than 5 million for BSkyB, would provide the "default access" for the 15 million British households – some 60 per cent of the country – that haven't subscribed to pay-TV.

"If the Government wants broadband Britain and the opportunity to market spectrum then there are things it has to do. That's why the Government has a role in this debate," Mr Murphy said.

"The critical thing the authorities must do is set a date for switch-off and make an announcement," he added. "When that happens it will crystallise the ITV pay-TV proposition."