71/01
30 October 2001

A review of the guidelines under which broadcasters purchase conditional access services to offer channels on digital television platforms has been launched today by Oftel.

The review will look at current arrangements for pricing, terms and conditions and whether public service broadcasters should be charged at rates different from commercial broadcasters.

Known as conditional access, encryption, subscriber authorisation and payment services are purchased by broadcasters in order to supply digital television channels to their customers over another company’s digital TV network.

Conditional access also ensures that rights for free to air programmes are not compromised by ensuring only UK households have access to the broadcasts.

Conditional access regulations apply to Sky Subscribers Services Ltd (SSSL) and ITV Digital, the two companies currently registered under the Conditional Access Services Class Licence.

Announcing the review, David Edmonds Director General of Telecommunications said today:

"Digital television has been a great success in the UK.

"Consumers can choose between three different networks and a huge number of channels, with 40 per cent of UK households subscribing to digital TV - a higher level than in Europe or the USA.

"The current regulatory regime gives companies the flexibility to negotiate terms and conditions, creating a considerable degree of regulatory certainty.

"However, as the market has developed so much in recent years, Oftel is now reviewing the conditional access regulations to see whether any changes are needed.

"An important issue is whether public service broadcasters should be charged different rates to reflect their different public service broadcasting obligations and structures.

"The review will look at whether Oftel should set the prices for conditional access services. Oftel also seeks views on what the fair, reasonable and non-discriminatory terms for the provision of conditional access services should be.

The closing date for responses to the consultation is 25 January 2002.

Notes to Editors

1 Oftel’s consultation document The pricing of conditional access services and related issues is published on Oftel’s website at www.oftel.gov.uk/publications/broadcasting/2001/caco1001.htm. Hard copies are available to the media from Oftel’s Press Office on 020 7634 8991 and to the public from Oftel’s Research and Information Unit on 020 7634 8761.

2 Conditional access services are those services needed by broadcasters in order to supply digital television services to those viewers who are authorised to receive them. Conditional access services include encryption services, subscriber authorisation services, subscriber management services and certain other technical services.

3 Public service broadcasters are considered to be Channel 3 franchises, Channel 4, S4C, Channel 5 and BBC channels.