BT, Sky under Oftel investigation

The Independent reported this Sunday that BT and Sky are under investigation by the UK telecoms regulator, Oftel. The investigation was prompted by a complaint from arch-rival ntl, the biggest cable operator in the country.

Sky and BT, in a marketing push designed to attract customers away from cable operators - which offer "bundled" TV and internet services - have an offer whereby subscribers to the Sky World package can receive a free installation pack, worth £80, and free connection to BT Broadband, worth £60. These offers apply if the subscriber agrees to take both Sky World and BT Broadband for a minimum of twelve months.

The investigation, taking place under the Competition Act according to the Independent newspaper, apparently centres on two main areas; whether competitors such as ntl are disadvantaged by the deal, and whether BT subscribers who aren't also subscribers to Sky's service are being discriminated against.

The idea of "cable busting" deals by BT and other pay-TV operators first surfaced, as detailed in this Digital Spy report, in June 2001. Recent developments in the cable world such as the strengthening of channel lineups both on ntl and Telewest's TV services, and the massive push to sell broadband, have caused the issue to resurface with renewed vigour on the part of BT and Sky.