The BBC has no strategic intent in the Republic, the broadcaster said yesterday, as it moved to assuage the concerns of domestic firms that fear its new satellite strategy will undermine Irish broadcasting.

The British state broadcaster said its plan to broadcast its digital channels unencrypted into the Republic via a new satellite from today would have little or no impact on the Irish marketplace.

"The BBC has no strategic intent in the Republic of Ireland," the BBC said in a statement. "The BBC is not launching a 'freesat service' but is simply making its service available unencrypted to viewers in the UK." From today, the BBC will begin broadcasting eight digital TV channels and all its digital radio channels unencrypted via a new satellite, Astra 2D. The footprint of this satellite covers both Britain and the Republic, enabling Irish households with a satellite dish and set-top box to pick up the channels free. As well as the eight channels on offer from the BBC, up to 90 other TV channels broadcast via the same Astra satellite are available free.

Irish broadcasters and cable firms are concerned that the creation of a "freesat" satellite system will undermine their ability to earn subscriptions from viewers and compete for domestic rights.

The BBC's plan is also likely to affect satellite broadcaster BSkyB. From today viewers with a satellite dish and set-top box could simply let their subscription with Sky run out and still receive the BBC's eight digital channels and a host of other free channels through their dishes.

But in a statement yesterday, the BBC said its channels BBC 1 and BBC 2 had already been available in most Irish homes for a number of years with no impact. It also said it had no intention of acquiring Irish TV rights and would not compete with Irish broadcasters for rights. "Therefore we believe that broadcasting our services in the clear will have little or no impact on the Irish market," said the BBC.

But IBEC's Telecoms and Internet Federation - which represents firms such as Chorus, NTL and RTÉ - opposes the BBC's plan and has asked the Government to speak to the British authorities on the issue.

Last week the Minister for Communications, Natural Resources and the Marine, Mr Ahern, said he would set up a broadcasting strategy group to look into the BBC issue. The Department is also reviewing the impact the new plan will have on a proposed Irish digital terrestrial TV platform.

Meanwhile, NTL and Chorus are still in talks with BBC about the amount they pay to carry its channels in the Republic. The firms believe the BBC's plan to broadcast free into the Republic should enable them to broadcast its channels via cable free.