5 October 2007
Communications industry watchdog Ofcom has warned BSkyB that it risks affecting competition for pay-TV services if it goes ahead with plans to put some of its sports and movies channels on digital terrestrial TV.
BSkyB announced proposals earlier this week to swap Sky Sports News, Sky News and Sky Three - already on free digital terrestrial TV - for Sky One, Sky Sports 1 and Sky Movies, under the firm's Picnic brand, however this has been contested by rival providers, BT Vision, Setanta Sports, Top Up TV and Virgin Media.
Opposition comes as BSkyB's rivals believe that its dominance on Pay-TV could affect competition, something that Ofcom is set to address in a ten-week consultation on the plans.
Speaking to the Financial Times, Neil Berkett, Chief Executive of Virgin Media, called for "rigorous scrutiny" by Ofcom.
He added: "The industry and consumers alike should be extremely concerned by any renewed attempt by Sky to exploit its control of key content."
In response Sky said: "BT and Virgin Media will do everything they can to stop Picnic. Their commercial self-interest shouldn't be allowed to stand in the way."
BSkyB hit the headlines earlier this week after the Competition Commission found that the purchase of a 17.9% stake in ITV last year could "operate against public interest".