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| BT escalates row with Sky by calling for Ofcom to probe pay-TV competition | BT escalates row with Sky by calling for Ofcom to probe pay-TV competition |
| (34 minutes later) | |
| BT has escalated its war of words with Sky, saying its rival’s dominance of the pay TV market is bad for consumers and calling on Ofcom to investigate competition in the pay-TV market. | BT has escalated its war of words with Sky, saying its rival’s dominance of the pay TV market is bad for consumers and calling on Ofcom to investigate competition in the pay-TV market. |
| John Petter, chief executive of BT’s consumer division, said that Sky’s control of 64% of pay-TV subscribers was leading to a raw deal for consumers. | John Petter, chief executive of BT’s consumer division, said that Sky’s control of 64% of pay-TV subscribers was leading to a raw deal for consumers. |
| He called for the regulator to force Sky to make all of its channels available on the wholesale market to all pay TV competitors, and make it easier to switch pay-TV providers. | He called for the regulator to force Sky to make all of its channels available on the wholesale market to all pay TV competitors, and make it easier to switch pay-TV providers. |
| Sky is currently forced to offer Sky Sports 1 and 2 to rival pay-TV providers, but not other channels including Sports 3, 4 and F1. The obligation is being challenged by Sky. | Sky is currently forced to offer Sky Sports 1 and 2 to rival pay-TV providers, but not other channels including Sports 3, 4 and F1. The obligation is being challenged by Sky. |
| Petter also cited research from Analysys Mason saying Sky consumers pay £4.34 a month more than the EU average for a basic TV package, though the research points out that the quality and range of channels on offer differs between providers. | Petter also cited research from Analysys Mason saying Sky consumers pay £4.34 a month more than the EU average for a basic TV package, though the research points out that the quality and range of channels on offer differs between providers. |
| He said he wanted Ofcom to include competition in the pay-TV market in its Digital Communications Review, which was announced in March and is set to published early next year. It is the first review of the whole sector by Ofcom in 10 years. | |
| BT’s call comes just months after Sky and internet service provider Talk Talk called on Ofcom to make BT split off its Openreach national telecoms network. | BT’s call comes just months after Sky and internet service provider Talk Talk called on Ofcom to make BT split off its Openreach national telecoms network. |
| Petter said: “The contrast between the rhetoric from Sky on broadband with the reality of their position as a virtually unregulated monopolist on TV is shocking. Sky are clearly hoping the louder they shout on broadband, the harder it will be for Ofcom to hear the cries of distress from pay-TV customers.” | Petter said: “The contrast between the rhetoric from Sky on broadband with the reality of their position as a virtually unregulated monopolist on TV is shocking. Sky are clearly hoping the louder they shout on broadband, the harder it will be for Ofcom to hear the cries of distress from pay-TV customers.” |
| A Sky spokesperson said: “The reality is that, in a competitive market, customers are choosing Sky in greater numbers and staying with us for longer because of the quality and value that we offer.” | A Sky spokesperson said: “The reality is that, in a competitive market, customers are choosing Sky in greater numbers and staying with us for longer because of the quality and value that we offer.” |
| “It is strange to hear BT talk about high prices when they are about to increase the price of BT Sport for Sky TV customers by 48%. This looks like an attempt to deflect attention from the real problems that exist in broadband, where consumers are suffering because of BT’s under-investment and there is concern about competition in the future.” | “It is strange to hear BT talk about high prices when they are about to increase the price of BT Sport for Sky TV customers by 48%. This looks like an attempt to deflect attention from the real problems that exist in broadband, where consumers are suffering because of BT’s under-investment and there is concern about competition in the future.” |
| Sky and BT are locked in a vicious battle to sign up customers to valuable bundles of services that include both pay TV and broadband. BT has 1.2m subscribers to BT TV, compared to Sky’s more than 10m. | Sky and BT are locked in a vicious battle to sign up customers to valuable bundles of services that include both pay TV and broadband. BT has 1.2m subscribers to BT TV, compared to Sky’s more than 10m. |
| Pay TV has become an especially fierce battleground, with BT’s recent bid for football rights driving the amount paid by the two companies for three seasons of Premier League rights up to a record £5.14bn. | Pay TV has become an especially fierce battleground, with BT’s recent bid for football rights driving the amount paid by the two companies for three seasons of Premier League rights up to a record £5.14bn. |
| However, BT insisted its call was aimed at getting a better deal for customers. | However, BT insisted its call was aimed at getting a better deal for customers. |
| “This is not about us actually, this is about consumers,” said Petter. “This is not just one corporate having a go at another. yes we are a corporate, and yes we are having a go, but we are doing it because of a consumer issue.” | “This is not about us actually, this is about consumers,” said Petter. “This is not just one corporate having a go at another. yes we are a corporate, and yes we are having a go, but we are doing it because of a consumer issue.” |
| An Ofcom spokesperson said: “Ofcom is carrying out a comprehensive review of the digital communications market, which is broader than our telecoms review 10 years ago. We welcome and are seeking evidence and analysis from all parties to help inform that work, and we will publish an update later this month.” |