With little fanfare Sky today launched its answer to Freeview - Freesat from Sky.

The new service costs a one-off fee of £150 and provides the viewer with 140 channels, including the BBC Digital services. Further interactive and radio services are also available.

As part of the package Sky provide a viewing card that provides access to the encrypted free-to-view services, such as Channel 4 and Five. The access to these channels is limited for a 2 year period, after which Sky are expected to charge viewers a further fee to re-enable this access.

While Sky claims that it does not see Freeview as a threat, it has been concerned about the recent slowdown in the number of new subscribers it has been signing up to its Pay-TV business.

A spokesperson for BSkyB said: "We think it is a really good offer for customers. It is not our core business. We will continue to focus our marketing efforts on the promotion of our pay-TV services."

The new service is only available direct from Sky.