BSkyB Put Back Digital Launch

BSkyB’s plans were originally to launch its digital services in the Spring of this year; delays in production of the set-top technology, however, have forced the company to put its launch date back to the “second quarter” of 1998.

Although SES has confirmed that the Astra satellite required will be moved to a new orbital position in time, the manufacture of the set-top boxes is behind schedule.

Pace Microtechnology, which is one of four providers of set-top technology for BSkyB, yesterday announced doubts that it would be able to produce the equipment before June. It also believed that other manufacturers were unlikely to be at a more advanced stage. Pace announced this news alongside an operating loss of £11.8 million for the half year ended 29 November 1997.

BSkyB, however, maintains that the equipment will be available for the second quarter of the year and that ‘significant volumes’ will have been achieved for the fourth quarter which Sky believes will be the key selling period. Yesterday the company’s shares fell 12.75p to 432p (a drop of just under 3% in value).

British Digital Broadcasting (BDB), the collaboration between BBC/Flextech, Granada and Carlton, is set to launch its digital and interactive services in the third quarter of 1998.

British Sky Broadcasting: 0171 705 3200 Pace Microtechnology: 0171 282 8000