Sky lays into Ofcom


September 21, 2009

Sky has been attacking the media regulator Ofcom with a vengeance following the publication of a report proposing that Sky should make its content available to other providers, including Virgin Media, BT and other commercial broadcasters.

Under the plan, Ofcom would set the prices and it seems that these could be cut by around twenty seven per cent compared with Sky’s wholesale price.

The proposal follows complaints from commercial operators that Sky is charging too much.

Currently there is deal between Sky and Virgin Media, but the cable operator says that it is unable to make a decent profit on it.

Sky is complaining that Ofcom has made errors in the calculations, because if it sold the wholesale services at the lower price that Ofcom suggests, Sky would lose £700 million over four years.






 

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