Consultation on Sky's DTT pay TV proposals

Ofcom has announced that it will conduct a public consultation on proposals from BSkyB and National Grid Wireless to replace Sky’s free channels with pay-TV services on the digital terrestrial television (DTT) platform.

Following Sky's announcement of these plans in February, Ofcom has been supplied with further detail by the two companies and says it now has sufficient information to review the proposals.

Sky is seeking to replace its three existing free-to-air channels - Sky News, Sky Three and Sky Sports News - with three pay television channels. The regulator has also confirmed that despite previous plans, MPEG4 compression technology will not be used.

The proposals raise a number of issues, including how Ofcom can best ensure fair and effective competition for the benefit of consumers.

Ofcom expects to issue a consultation document in the autumn, provided there are "no further delays in the conclusion of outstanding technical and commercial issues between the applicants."
This will be followed by a Statement, which Ofcom would hope to publish early next year.

In the meantime, Ofcom says National Grid Wireless is obliged to ensure that Sky’s free-to-air channels remain on the DTT platform, pending the outcome of Ofcom’s review.