BSkyB and Ofcom have reached an agreement to resolve Sky's application to the Competition Appeal Tribunal (CAT) for suspension of the outcome of Ofcom's Pay TV Market investigation.
In March, Ofcom's investigation into the UK pay TV market ruled that Sky must offer to supply Sky Sports 1 and 2 to other platforms at a wholesale price set by the regulator.
The agreement means that Ofcom's wholesale must offer (WMO) obligation will initially apply only in respect of BT, Top-up TV and Virgin Media on DTT and cable. Each of BT, Top-up TV and Virgin Media would effectively pay the rate card price for Sky Sports 1 and/or Sky Sports 2, with the difference between that and the relevant WMO price paid into escrow. At the conclusion of the appeal, the CAT will determine the distribution of the monies held in escrow.
A Sky spokesman said: "We are pleased to have been able to put forward an agreement which provides substantial protection against the short-term impacts of Ofcom's decision. We remain fully focused on our substantive appeal, which will be filed with the CAT in due course."
"We are pleased that this legal hurdle has been overcome." said David Chance, Chairman of Top Up TV. "Top Up TV will now be able to offer Sky Sports 1 and 2 to Freeview homes at competitive prices, without long term contracts, or a requirement to buy bundled packages of other channels or services"
DTG Staff | 30.04.2010