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.