Sky to launch on Freeview

By JON REES
Updated: 06:37 EST, 10 June 2007

Satellite broadcaster BSkyB is expected to get the go-ahead for a pay-TV service on Freeview, so long as it offers the new channels, at a price, to rival television providers such as Setanta and Top Up TV.

Media regulator Ofcom is to begin consultations on Sky's plans to broadcast four paid-for TV channels on Freeview, which provides a package of free digital television channels through a normal aerial.

Sky needs Ofcom to approve its plans to show live Premiership football, along with entertainment and news, on the paid-for channels, which will replace three free ones on Freeview. Viewers would need an upgraded set-top box to watch the new channels.

The move has enraged rivals. Virgin Media, for instance, accuses Sky of planning to undermine Freeview. Setanta, the Irish-owned pay-TV service available on Freeview, fears Sky's plans will damage prospects for its Premiership coverage starting in August. Setanta paid £392 million to break Sky's exclusive hold on football coverage and needs about 750,000 new subscribers in its first year to break even.

Ofcom is concerned that Sky's proposals could 'unacceptably diminish the appeal' of Freeview but is thought likely to approve the company's plans if Sky offers its channels to rival providers. Sky already sells premium channels to cable television suppliers.