The new licences, awarded for up to 12 years, are for digital terrestrial TV (DTT).

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DTT's problem is that it cannot offer the hundreds of channels available on cable or satellite.

ECONOMIST: Digital broadcasting

The report noted that up to 204 relay transmitters in Wales needed to be converted to carry the DTT signal before switchover happened.

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What is more "it's good news for Sky, because it makes the DTT (digital terrestrial) marketplace more coherent compared with ITV Digital", said WestLB analyst Simon Wallis.

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DTT, rather than allow Sky to be its wholesaler.

ECONOMIST: Digital television