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Sky Sports 1 and 2 are to launch on digital terrestrial television after Sky reached an interim agreement with Ofcom to offer its flagship sports channels at a lower wholesale cost to Top Up TV, Virgin Media and BT Vision.
The agreement between Sky and Ofcom will result in the three named Sky competitors having access to Sky Sports 1 and 2 at an Ofcom-mandated "wholesale must-offer" price for carriage on digital terrestrial and cable.
However, while the interim agreement is in effect, the three named competitors will effectively continue to pay the existing rate card price, with the difference between that and the wholesale must-offer price paid into escrow.
An appeal before the Competition Appeal Tribunal will determine the distribution of the monies held in escrow.
"We are pleased to have been able to put forward an agreement which provides substantial protection against the short-term impacts of Ofcom’s decision," a Sky spokesperson said. "We remain fully focused on our substantive appeal, which will be filed with the CAT in due course."
Top Up TV chairman David Chance welcomed the move, saying that it will offer Sky Sports 1 and 2 "to Freeview homes at competitive prices, without long term contracts, or a requirement to buy bundled packages of other channels or services".
A Virgin Media spokesperson said: "We welcome today's decision and look forward to Sky issuing its reference offer so that the wholesale regime can be implemented as quickly as possible."
The agreement between Sky and Ofcom will result in the three named Sky competitors having access to Sky Sports 1 and 2 at an Ofcom-mandated "wholesale must-offer" price for carriage on digital terrestrial and cable.
However, while the interim agreement is in effect, the three named competitors will effectively continue to pay the existing rate card price, with the difference between that and the wholesale must-offer price paid into escrow.
An appeal before the Competition Appeal Tribunal will determine the distribution of the monies held in escrow.
"We are pleased to have been able to put forward an agreement which provides substantial protection against the short-term impacts of Ofcom’s decision," a Sky spokesperson said. "We remain fully focused on our substantive appeal, which will be filed with the CAT in due course."
Top Up TV chairman David Chance welcomed the move, saying that it will offer Sky Sports 1 and 2 "to Freeview homes at competitive prices, without long term contracts, or a requirement to buy bundled packages of other channels or services".
A Virgin Media spokesperson said: "We welcome today's decision and look forward to Sky issuing its reference offer so that the wholesale regime can be implemented as quickly as possible."
