The future of the terrestrial transmission network in the United Kingdom is in question. It is not only a matter for television. The future of radio broadcasting is also to be reviewed. The public company that owns more than half of the transmission network operator Arqiva says that its majority stake is now worthless. It remains to be seen whether broadcasters can afford to fund broadcast networks, or can afford to lose audiences by switching them off.
Arqiva operates the transmission network for radio and television in the United Kingdom, with nearly 1500 sites across the country, reaching over 98% of the population.
Digital 9 Infrastructure plc, which owns 52% of Arqiva, has disclosed that its stake is technically worthless. At least, it is worth less than the debt it took on to acquire the shareholding from the Canada Pension Plan.
In November, Macquarie sold its 26.5% stake in Arqiva for £16.5 million, implying a valuation of the entire company of just £62 million.
In a regulatory announcement, Digital 9 disclosed that the indicative valuation of its equity in Arqiva is expected to fall to the point that the company expects to recognise the current net asset value for Arqiva of nil.
Digital 9 says its highly leveraged investment in Arqiva is very sensitive to key valuation assumptions, including public policy outcomes and the renewal of long-term broadcasting contracts.
While it says a nil valuation is plausible, it says there is a credible pathway to value in certain scenarios and will work with the Arqiva management on progressing opportunities that may enhance valuation over time.
Reading between the lines in the ledger, there is a high stakes standoff between broadcasters who would rather not pay Arqiva for the transmission of their services, the government that has public policy reasons for a national communications infrastructure, and a network operator that is largely dependent on the renewal of long-term contracts that are approaching expiry.
As of June 2025, Arqiva had contracts worth £2.8 billion, but it is now a buyer’s market and there is little appetite from broadcasters to pay as much in the future for the transmission of their signals.
That is ironic, since notionally and nominally they are in the broadcasting business. Their privileged position is based on licences that commit them to providing a universally accessible service.
There is an assumption a transition to online delivery will be driven and funded by viewers. Seven out of ten homes in the country now have access to an online video subscription service. That implies that they can view online video on their television. However, millions of homes still use the digital terrestrial television network for traditional channels, either on their main television or secondary sets in the home.
There are an estimated 13.6 million homes that use digital terrestrial television in the United Kingdom, generally known as Freeview. An estimated 2.9 million of them are entirely dependent on terrestrial transmissions for their television. The others use this in combination with online apps, satellite, or cable services.
Freely, which is being heavily promoted as the online successor to Freeview, has about a million users.
There is a similar shift in radio. Almost 75% of radio listening is apparently now digital rather than through traditional FM or AM transmissions. Some of that is through digital broadcasting, while some is delivered online. Unlike television, a lot of radio listening is in vehicles.
A review in 2021 concluded that FM broadcasts should continue until at least 2030, but recommended revisiting this in 2026.
The government is to review the future of radio transmission, in conjunction with the BBC and commercial radio broadcasters, to make recommendations on the future of radio services. It is envisaging a managed transition away from analogue radio in the 2030s.
One of the considerations is that radio transmission is largely dependent on the same infrastructure as television. Television and radio antennas are often collocated on the same tower or mast structures and rely on the same maintenance and backup facilities.
The Radio Review will conclude in the autumn with a report to the government, in time for the end of the ongoing review of the BBC charter.