Labour listens to broadcasters

The Government is to close a loophole in its plans to regulate the media sector that would have unfairly hit broadcasters.

The draft Communications Bill proposes a new "super regulator", Ofcom, to enforce rules on companies' behaviour. Most sectors of the UK media, including telecoms, would be given the right to appeal against Ofcom's decisions. But a loophole in the proposals means broadcasters would not have that right.

The final, amended version of the Bill is expected to be published in the next few weeks.

BSkyB, run by Tony Ball, highlighted the loophole in a collection of essays published by the Westminster Media Forum last week. It also criticised proposals to force BSkyB to carry public service broadcasters such as BBC channels, ITV and Channel 5. It said that because it already carries them, it is unnecessary to legislate.

However, in the same book of essays, ITV joint managing director Clive Jones, complained that it had to pay £20m to be on the satellite service. The network wants the Bill to spell out how much it should pay satellite companies to show public service channels.

Several radio organisations also criticised the Bill. Ralph Bernard, the chairman of GWR, owner of Classic FM, said: "Radio is facing a regulatory future just as restrictive as the antiquated system we have now."

Meanwhile, the Newspaper Society criticised the increased complexity of rules on newspaper ownership.

Both Vodafone and Orange also expressed concern that the mobile phone market will face an increased regulatory burden more like traditional or "fixed" phone operators.