DTI May Act Over Set-Top Boxes

The Department of Trade and Industry is set to announce measures which will effectively curb BSkyB gaining a monopoly in the UK digital television market.

The regulations would ensure that manufacturers of set-top boxes, the hardware which will allow TVs to receive digital broadcasts, would have access to and share the relevant technology. If a manufacturer, BSkyB for example, did not let other companies share the expertise then it would have to explain the reasons why to Oftel.

Some people, John Birt in particular, have expressed concern that BSkyB is so far ahead in the development of set-top boxes that it may gain a monopoly on units which only receive its own signals. This would mean people having to buy two boxes – one for digital terrestrial and one for digital satellite. The director general issued a warning in June *BBC Issues Digital Warning To Government that the Government should make sure that the public need only buy one box to receive all channels otherwise “hardware wars” would ensue.

BSkyB is expected to announce at its general meeting today the manufacturer who will get the contract to make its set-top boxes. According to speculation, some of the contenders are proposing boxes which may have limitations on the terrestrial signals that can be received.

The Government will announce the second phase of its consultation paper on digital TV within the next two weeks.

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DTI: 0171 215 5972