BSkyB Goes Into Battle With Cable Companies

According to press reports, a fresh dispute has erupted between BSkyB, the satellite broadcaster, and British cable-operators. Accusations are flying from both sides, with each claiming that the other is spreading misinformation and deceiving each others’ customers.

Two cable operators, one of whom is CableTel, have filed complaints with the ITC accusing BSkyB of coordinating a dirty tricks campaign aimed at persuading cable-customers to switch to satellite. The cable-operators involved claim that BSkyB is unfairly comparing satellite and cable price packages. BSkyB is also alleged to have suggested that cable-customers may have some of their channels abandoned without warning.

BSkyB has retaliated with similar accusations. It claims that the cable-operators are spreading false information about the Sky multichannel package. Cable-operators, BSkyB allege, have been told that they will no longer receive BSkyB’s analogue package once the digital programming is introduced at the end of the year. BSkyB has actually promised to continue both analogue and digital services.

The ITC refused to comment but has written to all UK cable-operators asking them to respond to the charges by 24 January.

This latest dispute is just one in a long running campaign by cable companies against what they view as BSkyB’s anti-competitive behavior. A six month inquiry by the Office of Fair Trading, ending last June, cleared BSkyB of all charges.

The satellite-operator has now introduced a new rate card that compares BSkyB prices with their cable counterparts. Cable companies say that this new card is still unfair. They have threatened the Office of Fair Trading with judicial review and are considering taking the case to Brussels.