Office of the Adjudicator – Broadcast Transmission Services
Report for the period 1 July 2025 – 30 September 2025
An explanation of the background to the Undertakings, the Office of the Adjudicator Broadcast Transmission Services (OTA-BTS) and the role of Transmission Adjudicator can be found in the Appendix to this report.
1 Key Events in the Quarter & Stakeholder Meetings
1.1 Work by Economic Consultants NERA
As outlined in the last Quarterly Report, the economic consultancy NERA has been appointed to review in detail the cost and pricing models Arqiva uses to generate Reference Offers and assess them against the requirements of the Undertakings and current Guidance.
The consultants will also analyse Arqiva’s profitability. In that part of its work, NERA will look at profitability both:
- against how Arqiva’s assets for Broadcast Transmission Services are valued when regulated prices are calculated (the Regulated Asset Base); and
- the alternative valuation method used in the accounts of Arqiva Group Limited (from which the valuation of the Regulated Fixed Asset Register, currently included in the Regulatory Accounts, is derived).
The emerging findings of this work will be discussed with Arqiva, and its comments will be taken into account.
NERA is also providing advice related to Arqiva’s Regulatory Accounts.
This work started in July and the project is likely to run until the end of March 2026.
NERA has been given access to Arqiva’s models and the people within Arqiva who are responsible for generating Reference Offer prices. The Adjudicator recognises the demands this work is placing on the finance team and others in Arqiva.
The consultants will also analyse whether changes to some inputs – e.g. asset lives and depreciation, the Weighted Average Cost of Capital (WACC) and apportioned operating costs (OPEX) – have material implications on prices generated by the models.
Stakeholders who wish to discuss NERA’s work in more detail should contact the Adjudicator.
It is the intention to publish much of the results of NERA’s work (having considered the Undertakings, including what they say about both commercial confidentiality and transparency).
- Summary of NERA’s overall findings and the Adjudicator’s conclusions
- Explanation of how regulated prices are calculated
- Assessment of compliance with the Undertakings and current guidance
- Potential updating of guidance or the format of the Regulatory Accounts.
1.2 Regulatory Accounts & Regulatory Accounts Principles & Methodologies (RAPM)
One of the obligations of the Undertakings is for Arqiva to publish Regulatory Accounts towards the end of October each year. This year’s accounts will cover the period from 1 July 2024 to 30 June 2025.
Preparing the accounts is a year-round process for Arqiva’s finance team, with points when the Adjudicator is also involved. The Adjudicator’s work, with advice from NERA, is shaped by submissions stakeholders made to the consultation just under a year ago.
In May, Glyn Jones, Jeff Astle and James Grayburn from NERA met with Arqiva and its auditors PwC. Arqiva presented financial information about the first half of its financial year and PwC summarised its plans for the audit of the Regulatory Accounts this autumn.
In July Glyn Jones and Jeff Astle met with PwC for further discussions to develop a more detailed understanding of the nature, scope and processes of the audit.
Arqiva and the Adjudicator have jointly reviewed the Regulatory Accounts Principles and Methodologies (the RAPM), the sister-document to the Regulatory Accounts. It sets out the accounting principles, methodologies and rules to be used in preparing the accounts. None of the allocation methodologies have been changed this year but there have been some revisions to the wording and layout to make the document more readable and accessible.
As noted in the last report, the Adjudicator is seeking to agree with Arqiva the best way to provide some additional commentary or a set of answers to stakeholder questions arising from the Regulatory Accounts. These discussions are continuing.
1.3 Electricity Charging & Reviews of Sample Reference Offers
As part of his consultancy work, Simon Mason is continuing to review offers made by Arqiva for renewals and new services. Stakeholders should be aware that Simon looks at a confidential sample of offers (i.e. not every offer is reviewed).
Given the Adjudicator’s continuing discussions with Arqiva about pass-through costs and billing for electricity, particular attention is given to this aspect of offers which Simon reviews.
1.4 Meetings with Stakeholders
During this period the Transmission Adjudicator, Glyn Jones, and his team held meetings either face-to-face or via video conference using Teams with:
Arqiva BBC CMA
D3&4 NERA Ofcom
PWC
The Adjudicator believes regular meetings with a range of stakeholders are important to ensure he is aware of current views, trends and any concerns. During the next quarter (which runs from 1 October to 31 December) the intention is to meet with a wider range of stakeholders and ensure there are more meetings with commercial radio companies.
1.5 Monitoring Key Industry Developments
The Adjudicator continues to monitor key announcements and developments which may affect broadcast transmission. In this quarter these included:
- At the start of September, MPs held a Westminster Hall debate on the future of Freeview and the DCMS-led process to consider a possible transition away from DTT (as streaming audiences grow). Perhaps because of the nature of the debate, most MPs who spoke focused on concerns that constituents could lose access to free-to-air television and be disadvantaged. Less than universal access to broadband and the costs on internet subscriptions were also themes. Responding for the government, Media Minister Stephanie Peacock said the government was looking carefully at the issues but MPs could be reassured that a key aim was to ensure no viewers would be “left behind”.
- Later In September, as part of the broader reshuffle of government ministers, the former Secretary of State for Scotland, Ian Murray, joined the DCMS team as Minister of State. As part of his portfolio, he has taken over responsibility for Media (and, therefore, will shape decisions about the future of Freeview). Prior to becoming an MP, one of Ian Murray’s jobs was as Operations Director for an internet-based arts TV station.
1.6 The Adjudicator’s Team
Glyn Jones has been Transmission Adjudicator since March 2024. Megan Donald is the Executive Assistant and Office Manager. Jeff Astle works with the Adjudicator on consultations and other projects. Since July, Tanisha Ranjit has been working as an intern across a range of projects. All four work part time.
In addition, Alice Wallace-Wright of Hogan Lovells International LLP provides legal advice, Professor Geoffrey Myers provides ad-hoc advice on economics and regulation, and Simon Mason provides ad-hoc technical expertise and advice.
Megan Donald is based at Ofcom’s offices at Riverside House. The rest of the team have access to desks and meeting rooms in Ofcom’s building when needed.
Website: www.ota-bts.org.uk
Adjudicator: glyn.jones@ota-bts.org.uk
Executive Assistant: megan.donald@ota-bts.org.uk
2 2025/26 Budget
Expenditure from 1 April 2025 to 30 September 2025 (end of Q2 of the OTA-BTS financial year) was £320,700 against an annual budget of £793,525. This is broadly in line with expected expenditure and reflects the phasing of the budget (including for legal advice and external consultancy). In addition, a contingency of £470,000 is available if needed.
The Undertakings require Arqiva to fund the Office of the Adjudicator
3 Routine Reporting Items
3.1 Arqiva’s Performance
Paragraph 35 of Appendix 1 requires the Adjudicator to comment on the performance of Arqiva over this period, in relation to the Undertakings.
The performance of Arqiva continues to be generally satisfactory.
3.2 Disputes
In this period there have been no disputes requiring the use of the formal Dispute procedure described in Appendix 2 of the Undertakings.
During the quarter, the Transmission Adjudicator published some additional information about the processes and timetables set out in Appendix 2. This information can be found at (https://ota-bts.org.uk/dispute-process-non-binding-advice-and-information/).
3.3 Guidance
During this period, no new Guidance has been issued. The Transmission Adjudicator has previously issued Guidance covering Paragraphs 6 and 9-12 of the Undertakings and is of the opinion that no Guidance is required in relation to Paragraph 3.
The Transmission Adjudicator will continue to monitor compliance with the Undertakings and existing Guidance and will consider whether any further Guidance is required.
Documents related to Guidance previously issued by Ofcom and the Office of the Adjudicator can be found on the website at www.ota-bts.org.uk.
3.4 Publication of Reference Offers
As previewed in the last report, in July Arqiva updated the “Radio Rate Card for Network Access” which is used to generate pricing proposals for some customers when Arqiva judges it is appropriate. The RPI figure used was 4.47% for the year to April 2025.
The updated rate card can be found at https://www.arqiva.com/documentation/reference-offers/broadcast-radio/Arqiva_Radio_Rate_Card_for_Network_Access__2025-26.pdf .
and other reference offers are available at https://www.arqiva.com/documentation/ .
3.5 Compliance Report
Paragraph 18.1 of the Undertakings requires Arqiva to deliver an annual report to the Office of Fair Trading (now the Competition and Markets Authority), setting out steps taken to comply with the Undertakings plus details of any breaches or potential breaches and the steps taken to remedy them.
The report for the year from 1st July 2024 to 30th June 2025 was delivered to the CMA, Ofcom, and the Adjudicator in September. Arqiva reported no instances of non-compliance.
3.6 The Undertakings
The Adjudicator believes that the Undertakings, the Adjudication Scheme and Adjudication Rules are satisfactory at the present time and that no changes are needed. As required by the Undertakings, this will continue to be kept under review.
3.7 Information Security Strategy
Paragraph 16.2 of the Undertakings requires Arqiva to produce an Information Security Strategy which defines the measures to be taken to ensure that confidential information held in one part of the company cannot be used by another for commercial advantage.
In June 2025, Arqiva published an updated version of its Information Security Strategy with minor changes. This can be found under the “Corporate” tab at https://www.arqiva.com/documentation.
4 Feedback
The Undertakings require certain things to be included in each quarterly report and for the reports to be sent to the Competition and Markets Authority and Ofcom. In addition, the reports are published on the website of the Office of the Adjudicator at www.ota-bts.org.uk.
Any stakeholder comments about this report, its contents, or suggestions for how it could be improved would be welcome and should be emailed to the Transmission Adjudicator glyn.jones@ota-bts.org.uk.
Appendix A – Background
Whether you’re a new reader or came here for a refresher (or by accident), welcome. The aim here is to explain why OTA-BTS exists, what its job is and what the Transmission Adjudicator is here for.
Back in 2008, Arqiva took over the only other major company providing transmission services to radio and TV broadcasters (i.e. National Grid Wireless).
At the time, the Competition Commission judged the deal “…may be expected to result in a substantial lessening of competition…and…may be expected to result in…adverse effects…”. After consulting with broadcasters and other stakeholders, the deal was allowed to go ahead on the basis of a detailed set of promises made by Arqiva. These are known as the Undertakings.
One requirement of the Undertakings was the setting up of the Office of the Adjudicator and the appointment of a Transmission Adjudicator. While that appointment is made by Ofcom, the Adjudicator takes decisions independently of Ofcom, Arqiva and UK broadcasters.
The Office of the Adjudicator exists to ensure the promises in the Undertakings are being kept and followed, to issue guidance and directions to Arqiva and to adjudicate in certain disputes between Arqiva and its customers.
The goal of the Undertakings is to ensure any substantial lessening of competition does not result in adverse effects and help replicate the outcomes that would be expected in a competitive market.
The Undertakings can be found at https://www.ota-bts.org.uk/undertakings.html.
Although the Adjudicator has independence when carrying out their functions, the Undertakings give Ofcom certain roles (e.g. setting the budget each year, appointing Adjudicators and in some circumstances terminating their contracts).
Finally, alongside the Adjudicator, overarching responsibility for compliance with the Undertakings sits with the Competition and Markets Authority.