Oftel publish decision on ITV complaint

An ITV complaint that the BSkyB levy for conditional access services is excessive, and constitutes anti-competitive price discrimination between ITV and other public service broadcasters, has been rejected by Oftel.
Following a "thorough investigation", Oftel have concluded that the charge for carrying the digital channel ITV1 on BSkyB’s satellite network is fair, reasonable and non-discriminatory.
Peter Waller, Oftel’s Deputy Director General, said: "Oftel found no evidence to support ITV’s complaint that the charges for access to their satellite network were unreasonable, unfair or discriminatory. Oftel has therefore rejected ITV’s complaint."
In relation to ITV’s allegation that the price they pay for conditional access services constitutes discrimination between it and other public service broadcasters, Oftel found that legitimate reasons exist for the differences in price. In particular, Oftel pointed out that deals with other public service broadcasters were concluded at different times, when there were significantly different prevailing market and commercial conditions.
In related news, Oftel have also welcomed the recent decision from BSkyB to remove, from January 2003, the contractual requirement for consumers who receive a free set-top box to subscribe to their digital television services.
BSkyB recoups the cost of free set-top boxes through conditional access charges and their broadcasting packages, which consumers were required to buy in order to qualify for a free set-top box.
As all broadcasters contribute to the subsidy through conditional access charges, Oftel had raised concerns with BSkyB that it was inappropriate for it to require customers to purchase a BSkyB broadcasting package in order to receive all channels, including non-BSkyB channels.
BSkyB have now decided to withdraw that condition.
(GB)