BBC comes under fire over digital TV licence fees

The BBC is being attacked by commercial broadcasters and digital TV vendors over its plans to charge digital television subscribers an extra £24 per year.

Described as a "digital poll tax", BSkyB, ITV, Cable & Wireless, Granada, Carlton, Pace, NTL, Telewest and United Broadcasting Entertainment have appointed an unnamed law firm to deal with the planned approach to the EU regarding rules on state aid.

A spokesman for the companies explained that last week's publication of the Davies committee report into the future funding of the BBC could "discourage people using digital TV". He added: "It's putting money straight into the BBC's pocket."

The spokesman explained that the named companies feel aggrieved because they have had to invest millions of pounds of their own money into the development of digital TV.

"Companies should be encouraged not discouraged," said Helen Kettleborough, corporate communications manager at Pace Microsystems, the largest manufacturer of set-top-boxes in the UK.

"A move like this has the potential to slow down the growth of digital TV in the UK," she said, and added that the BBC's plan should be stopped as the digital TV market could provide huge potential for UK companies abroad.

The BBC refused to comment, describing the situation as a non-event.