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Recent Case in ICT area where UK or EU regulators have intervened - Essay Example

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In April of 2007, Sky TV applied to Ofcom in order to replace the free channels which were being provided on Freeview, the digital terrestrial, television service, with a paid-for service known as picnic that allowed access to news, sports, film and entertainment channels…
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Recent Case in ICT area where UK or EU regulators have intervened
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Recent Case in ICT area where UK or EU regulators have intervened

Download file to see previous pages... osal was to replace its existing three free to air channels with a line up of premium channels that would be available using a new specification digital-terrestrial set-top box (Lee, 2007). Ofcom was however reluctant to allow Sky TV the license and regulatory approval it was seeking to achieve the above stated objective and permit a change in its licensing terms.
In response to Sky TV’s application for the change in its licensing terms, the UK regulator Ofcom pointed out that if such a license was allowed to Sky TV, it could squeeze out smaller competitors such as Setanta and BT Vision. It offered the view that the granting of such a license would require a much more broad based investigation into the entire pay-TV market, which would also take into account, issues raised by Sky TV in promoting its proposal, as well as other factors in the external environment that could be detrimental to the market in general (Prosser, 2008). The major advantage that Sky has projected in its proposal is the greater choice that consumers would be able to have in their viewing choices, thereby giving rise to a superior quality and level of TV service. The broadcaster was already in a plum position, because it had the first right to broadcast Hollywood movies and most premium sporting events (Lane, 2010). The opposition offered to its proposals to convert freeview into paid for TV came from its rivals such as Setanta and Top-up TV, who contended that Sky was already in a dominant position in the market and granting such permission and license to the company would turn it into a monopoly that would inhibit free and fair competition in the marketplace.
The investigation and negotiations have continued over a long period of three years and appear to have finally concluded in a compromised solution. i.e, Sky would be required to offer its premium sports channels to other TV stations offering pay-per-view packages, but in return would allow Sky to gain access to some of the ...Download file to see next pagesRead More
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