Dan Sabbagh, Media Editor
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The BBC won provisional approval yesterday to create a free satellite television service that could rival pay-television platforms from BSkyB and Virgin Media.
The corporation’s regulator, the BBC Trust, said that the BBC should launch the service by 2008 with the expected support of fellow free-to-air broadcasters ITV and Channel 4.
Chitra Bharucha, the acting chairman of the BBC Trust, said: “For those seven million homes yet to make the switch [to digital television], it needs to be clear that the benefits of digital television do not need to equal ‘pay television’.”
The BBC is concerned that 27 per cent of homes – about 6.75 million households – cannot receive Freeview. It argued that viewers may feel forced into taking pay-TV for channels already paid for through the licence fee.
Unlike FreeView, a free satellite service can carry hundreds of channels, and there are no capacity constraints on high definition (HD) content. Freeview is expected to be able to carry only five HD channels, handing a competitive advantage to cable and satellite.
BSkyB, 39.1 per cent owned by News Corporation, parent company of The Times, also provides its own free satellite service, called Freesat from Sky, for a one-off connection fee of £150. A BBC-backed service is likely to be priced at a similar level. The satellite broadcaster declined to comment yesterday, but was keen to ensure that any licence fee-payers’ money was not used to subsidise an attack on its core revenues.
The BBC conducted only a limited analysis into the impact on pay-TV companies, but it did produce one forecast that showed that the new service could be used in 2.5 million homes if there was “a strong HD channel lineup”. Without such a service, the BBC’s own freesat proposition could be at risk of failure, with only 500,000 households buying the kit.
Earlier this year, Ofcom, the communications regulator, offered little comfort for broadcasters hoping to launch HD channels on Freeview when it said that it would refuse to reserve any spectrum for the purpose. With the frequencies now available to the highest bidder, the BBC will not be able to outbid commercial concerns to win the spectrum.
The BBC Trust will hold a short 28-day consultation before reaching a final decision, although no material change is anticipated.
Sat Wars
BBC
Freesat
Digital satellite
High Definition
One-off upfront payment for range of receiver options £150
Channels to include BBC, ITV and C4
UK coverage: 96-99%
Take-up: Est 2.5m by 2012
FREEVIEW
Digital terrestrial
High Definition unlikely prior to 2012
One-off payment for range of reciever options (£30-£200)
40 plus channels including all BBC, C4 C4C4 4 and FIVE
UK coverage: 75%
Current take-up: 7m
VIRGIN MEDIA
Analogue/ digital cable
High Definition but only on-demand at present
Various subscription packages (£15.50 to £29.50 per month)
Various channel and telephone packages
UK coverage: 50%
Current take-up: 3.3m (2.9m digital)
BSKYB
Sky Pay packages*
Digital satellite
High Definition
Various subscriptions packages (£15-£42.50 per month)
Channels include: various packages on top of Freesat from Sky
UK coverage: 99%
Current take-up: 7.8m
* Sky also offers a Freesat service
Source: BBC Trust
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HOORAY sounds good, cos we have sky free stat but there are very few channels available ( like more 4 / e 4 etc). will this new service have all the bbc / itv /c4 channels? . Here in the south the change over isnt untill 2012 and not being in a freeview area we have a long wait.
joyce Tanner, Blandford forum, Dorset
i have sky freesat ,as i can not get a proper signal via a ariel,and i live ten miles from a tv transmitter .my house has trees in front ,and at the side,so i do not have a choice .
what i need to know is will the BBC freesat carrey the same as "free view" and can you use a sky box?
BRIAN BINNERSLEY, shrewsbury, shropshire
I cannot wait for the BBC to launch this service. The only way we can access Freeview in our area is to install a very high mast with an aerial pointing to a distant transmitter - so the signal breaks up frequently. 2012 is the date given for our terrestrial transmitter to be changed over to digital and we live in a heavily populated area!
SKY does not interest me... if I have to suffer advert breaks I don't want to pay a subscription as well. Once the BBC launches, manufacturers of receiving equipment will compete to bring the prices down.
Alan Thompson, Polegate, UK
Free to view BBC/ITV channels are not only available to the public through sky. It is possible to buy a non sky receiver and dish to receive these free to air channels the general public are not made aware of this and they associate satellite tv only with sky!. In effect a free digital satellite tv service is available now from the BBC and ITV without any reliance from SKY (unless their is some contract attached to the Sky Astra satellite itself). In addition the BBC are presently broadcasting an HD channel which is also available under the above conditions provided the correct HD receiver is purchased. The most important thing is that the BBC must have a long term platform for broadcasting HD TV without this the viability of any free to view organisation will be limited. The writing is on the wall, how many HD ready Tv's have been purchased recently? When the public realise they may not get HD without paying for it they are not going to be very happy.
Michael Dunglinson, carlisle, Cumbria
I applaud the BBC for at last showing some ambition and doing something about the national coverage problems with Freeview. Many people in this country simply have no choice but to subscribe to pay TV operators such as SKY if they want digital TV. I am currently with SKY but would move in a trice if I thought the BBC could come up with a basic free digital satelite service package, coupled with additional pay TV channels and a recording machine that could rival SKY+ . The issue here is choice and it is a poor show that the public has been treated so badly todate. Ultimately responsibility for this lack of choice lies with the Government.
Mike , Bristol, UK
I'm a bit surprised by this as the BBC channels and others are already available unencrypted on the Sky satellite - so what is different in this proposal ?
Andy, Luxembourg, Luxembourgf
Does this mean I will be able to watch British TV in the USA - I hope so.
Derek Boulter, Sugar Land, Texas, USA
Golly. The BBC and government seem to live in a parallel universe where the public is at fault for not using Freeview.
For those seven million homes yet to make the switch [to digital television], it needs to be clear that the benefits of digital television do not need to equal pay television. What a load of twaddle.
Seriously. Terrestrial Freeview is good. I used to use it, but I have had to switch to Sky, which I hate because it so expensive and commercialised. Why did I switch? Because I moved to a large town in Wiltshire, which is not scheduled to get Freeview until 2012.
I just don't understand why there is any debate about all of this. If the government got on with the rollout of terrestrial freeview, they wouldn't need these satellites, or for us to get more dishes.
Christopher, Shrewton, UK
But all the BBC channels (and radio) are already on free to air Astra satellites along with ITV and hundreds more channels, they have been for over a year! I watch them all the time with my £20 reciever.
Oliver, Cologne, Germany
I am also fed up with the BBC. Their grasp of digital broadcast strategy is tenuous to say the least. If more than a quarter of homes can't get Freeview, why are they starting the digital switchover soon? What's their proposed solution? The whole thing also requires quite a big spend by consumers who at least have to buy a box for each TV, and maybe multiple satellite feeds. For this we get precisely nothing except endless trashy new channels. On the DAB front, they spend a lot of time on R5 repeating that it's available on Digital Radio, Digital TV and On line. None of these is available where I live. What will happen when they switch off the medium wave? And will digital car radio work in hilly areas? A bit less disingenous pushing of unproven fixes for the technical problems in their expansion policy would go down quite well around here.
colin, Shrewsbury UK,
The BBC needs to get technology predictions and investment plans in-line with some urgency. Living in the 'high-tech' Thames Valley, I still cannot get Freeview with any reliability. Some days, and recently this has been more often than not, there is no Freeview reception on any channel.
I would not invest in a BBC satellite service because the BBC has taken the 'tabloid' approach to journalism and programming.
Give the BBC a commercial charter so it can get a satellite service operational as suggested and free us from the terrestrial licence fee for a service it can't deliver now and has no hope of delivering in the future HD world.
I'm sure the BBC wants to embellish its global reach, and no doubt with a satellite service, it would do a good job!
I can then choose SKY+ now, and reception issues will be a thing of the past.
M Delaney, Thames Valley,
Here in Skipton, a sizable market town, we are only able to receive analogue television, without even channel 5. As far as I know we are not likely to have a terrestrial digital service until the end of the rollout.
I have had to accept that despite paying my licence fee, the only real alternative is the SKY system if i wish to access the "free to view" channels.
What a carry-on!!
John, skipton, North Yorkshire
The TV licence fee has long been an unfair tax on those unable to receive terrestrial channels due to their geographic location. Whether the old analogue or newer digital terrestrial channels, if the terrestrial broadcasters cant provide coverage by terrestrial means then the licence fee should be waved. Sat coverage whether by Sky or by new 'free' sat channels is not 'free' and still involves extra costs if you're unfortunate to live in a remote area, and its pretty certain you wont find NTL/Virgin either on your doorstep. It seems that the TV licence specifically meant for the BBC, is charged whether you are given a terrestial service or not and that should be changed.
Mike, Denia, Spain
The term "BBC" and "free" seems funny when we pay a hefty Standing-Charge just to own a TV-set and have no control over this State Monolith which is a law unto itself.
It is the new State Church collecting its tithe and punishing those with criminal law who do not offer supplication
Tom, Leeds, England