ADSL Broadband
Best Broadband
Cable Broadband
Free Broadband
Fastest Broadband
20Mb Broadband
50Mb Broadband
Fibre-Optic Broadband
Sky follows up Ofcom challenge
Thursday 24th September 2009, by Daniel King
Following a challenge to recent proposals that could alter the way in which its combined broadband, telephone and television packages are made available, Sky has published a report that backs its recent claims.
Last week the broadcaster and web services provider outlined its concern regarding suggestions from telecommunications watchdog Ofcom that put forward the idea that the firm's premium sport and movie channels should be available to third party providers at a lower rate.
Sky explained the consultation document, which accompanied a wider study of the pay TV market, was reflective of an "extreme and unprecedented" move and, as it had not breached any competition law to justify the action, the regulator's suggestions were "unlawful".
Now the company has issued details of an independent report that has predicted the "adverse effects" it could expect should the Ofcom proposals be enforced.
Put together by Professor Martin Cave of the Centre for Management at the University of Warwick's Business School, the study concluded that by making the Sky content available more cheaply to its rivals, there could be wider economic and consumer-based knock-on effects that have not been acknowledged.
"The regulator is
explicitly designing its intervention with a view to a particular market structure, rather than creating an environment in which a competitive process can better operate," Professor Cave explained, adding this was "particularly hazardous" due to the fast-paced and unpredictable nature of the broadcasting sector.
"Wholesale premium channels are unusually inhospitable territory in which to impose such controls," the expert added.
Categories: Broadband Products, Sky
