'Single ITV could spring from media ownership reforms'

The British government has paved the way for a single ITV by announcing plans to scrap rules which limit ownership by broadcasters.

Until now companies have been constrained by regulations which put a 15% ceiling on the share of the total TV audience.

But in a consultation paper on media ownership published, the Government says it has decided to remove the rule completely.

It would throw the door open to a potential and long-awaited merger between Carlton and Granada, the major players in the ITV network.

The paper says: "There has already been a considerable degree of concentration within ITV which has benefited the industry. Further consolidation may bring benefits for consumers and companies alike."

The proposals, published by British culture secretary Tessa Jowell and trade secretary Patricia Hewitt, also include the scrapping of a rule which stops both London ITV licences being held by the same company.

The paper said: "These two changes will make possible the creation of a single ITV company."

Some critics had told the British government they thought that consolidation of ITV - dominated by Carlton and Granada - could drive up advertising costs.

But the paper points out that is an issue for competition authorities.

Aims of the paper include retaining diversity while promoting competition and, where possible, deregulating.