Oftel has opened a consultation reviewing the guidelines under which broadcasters purchase conditional access services to offer channels on digital television platforms.

Conditional access services are one of the services purchased by broadcasters in order to ensure that when supplying digital television channels to their customers over another company's digital TV network only those consumers authorised to receive those services do so.

Conditional access services include encryption, subscriber authorisation and payment services. Conditional access also ensures that rights for free-to-air programmes are not compromised by ensuring only UK households have access to the broadcasts.

Under the current regime, suppliers of conditional access services are obliged to provide them on a "fair, reasonable and non-discriminatory" basis. Oftel has the power to intervene to set prices if commercial negotiations fail and a complaint is made to Oftel.

The consultation invites comments from stakeholder on three issues:
· Should there be ex ante price control - should Oftel set prices for conditional access in advance?;
· Do current tariff structures act as potential barriers to entry for certain types of service?; and
· Should there be differential rates for public service broadcasters?

Oftel does not believe that ex ante price controls would be appropriate or proportionate. However Oftel is investigating whether current tariff structures act as a barrier to entry for certain services. On the issue of public service broadcasting, Oftel believes that while public service broadcasters should pay a commercial rate for conditional access services, there is scope for conditional access suppliers charging different rates to purely commercial broadcasters. The differing nature of public service broadcasters should be taken into account when setting such charges. Oftel will consider drafting additional guidance setting out how the 'fair and reasonable' requirement should be applied to public service broadcasters.

The consultation closes on January 25.

For further information contact Ian Moss (tel: 020 7634 8861/e-mail: ian.moss@oftel.gov.uk).