UK pay-TV operator BSkyB has issued a strongly-worded response to communications regulator OfcomÂs investigation into the UK pay-TV market. In its submission, News Corp-backed Sky said Ofcom has an Âextreme agendaÂ.
The regulator has proposed measures that would force Sky to sell its channels to other pay-TV operators at regulated rates, likely to be well below what it currently seeks to charge third parties.
Sky said: ÂSkyÂs channels are to be treated as regulated assets, the development and use of which is to be controlled by Ofcom in order to further OfcomÂs policy objectives, to the benefit of SkyÂs current and future competitors and, in SkyÂs view, to the detriment of Sky, the competitive process and consumers.Â It added that the measures on the table are ÂextremeÂ and ÂunprecedentedÂ given that Sky is not in breach of UK competition law and the returns it generates by wholesaling channels are Âperfectly normalÂ.
SkyÂs submission comes as two of SkyÂs competitors, MSO Virgin Media and telco and IPTV operator BT, issued their own joint submission to Ofcom. They asked the regulator to ensure there are no loopholes in the proposed rules that would allow Sky to avoid complying with the spiritÂ with which they were intended.
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