BBC Trust Approves Freesat Service
The BBC Trust has provisionally approved the launch of the Freesat service, which would give viewers free digital television via satellite.
The Trust said that the service would create significant public value by giving licence fee payers an additional way to access digital television.
The Trust decided that a Freesat service would have a positive impact by introducing choice to the market and a guaranteed subscription free alternative to Sky’s free satellite option.
With regard to the impact of Freesat on the wider market, the Trust provisionally concluded that Freesat would have some negative impact on the wider market but increase choice for consumers.
Not everyone is currently able to receive Freeview as some transmitters have yet to be upgraded. If Freesat, which is also backed by ITV, does go ahead it will make digital television accessible to the whole country.
Acting BBC Chairman Chitra Bharucha said: “The BBC’s Royal Charter requires the Corporation to take a leading role in digital switchover which begins next year. From 2008 until 2012, as each UK nation and region switches to digital, all households that haven’t done so already will have to choose a new way to access television.
“One of the benefits arising from digital switchover will be greater choice for viewers. For those seven million homes yet to make the switch, it needs to be clear that the benefits of digital television do not need to equal ‘pay television’.
“A new, guaranteed subscription-free satellite service would provide the public another option when deciding which platform to choose. Over half of those yet to switch fall outside the Freeview coverage area. For these homes, the new service would mean being able to access BBC digital services they have already paid for via their licence fee but until now have been unable to receive on a guaranteed subscription-free basis.”
Bharucha added: “We have considered the market impact and whilst there may be some negative effects, in our view these should be balanced against the potential positive market impact of greater choice. Overall, we believe a ‘Freesat’ service to be in the public interest and we hope that other public service broadcasters would join the BBC in a joint venture. We welcome all responses to our provisional conclusion during the consultation.”
In July last year it was reported that Freesat could be delayed until late this year, as no common standard for the service could be agreed upon (see New FreeSat Service Delayed By More Than A Year).
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