Oftel finalises arrangements for Conditional Access

Oftel has issued a statement outlining its conclusions on conditional access for digital broadcasters.

Conditional access services allow broadcasters to supply their television programmes only to customers who are entitled to watch them. Conditional access ensures, for example, that only people who have paid to receive certain programmes can do so, and that free-to-air channels such as the BBC can only be viewed by UK consumers.

BSkyB is currently the UK's only provider of conditional access services, although the same guidelines will also apply to any successor to ITV Digital. The guidelines do not apply to the cable operators, which do not make capacity available on their networks to carry other broadcasters' programmes.

In the statement, published in May, Oftel confirms its view that it is not appropriate or proportionate for Oftel to set prices for conditional access.

Suppliers of conditional access services are obliged by the terms of their licence to provide them on a "fair, reasonable and non-discriminatory" basis, and Oftel has the power to intervene to set prices if commercial negotiations fail.

Under the new guidelines, companies will continue to negotiate their own prices with BSkyB, but can refer the matter to Oftel if they cannot reach agreement.

Oftel has provided more detail about what factors should be considered during negotiations.

For example, charges for conditional access should reflect any retail charge paid by consumers. This means that single channels will be able to obtain conditional access at an appropriate rate compared to larger (and more expensively priced) packages of channels, and addresses Oftel's concern that the existing tariff structures may have been acting as a barrier to entry for single channels.

The statement confirms Oftel's belief that PSBs should not automatically get a special deal for access to digital TV platforms. However, the nature of many public service channels (for example the fact that consumers do not have to pay to see them) is likely to result in lower charges for PSBs than for commercial broadcasters.

Oftel will issue more detailed guidance on how conditional access charges should be arrived at later in the year.

For further information contact Margaret Doherty (tel: 020 7634 8828/e-mail: margaret.doherty@oftel.gov.uk).