BBC delays launch of new satellite service

The BBC has delayed the launch of a new satellite service that would enable thousands of Irish households to receive its eight digital television channels and all its radio stations for free.

The service, which was originally expected to begin broadcasting later this week, will not now begin broadcasting for at least six weeks due to a dispute between the BBC and BSkyB.

The delay has been caused by the BBC's decision to challenge a threat by the dominant satellite provider BSkyB to relegate the BBC's channels on its own electronic programme guide (EPG).

BSkyB's EPG is a menu function for its digital television services that lists all available channels and programmes in an easily accessible form for users.

BSkyB's British customers currently receive BBC1 and BBC2 at the prominent channel positions 101 and 102 on their electronic programme guide. But following the BBC's decision to broadcast its channels on a rival satellite, BSkyB has threatened to shift the BBC channels to the bottom of its EPG, thereby making them more difficult for consumers to access.

BSkyB considers the BBC's support for a rival satellite system called Astra 2D as a competitive threat to its own platform. It also means that BSkyB has lost a lucrative contract with the BBC to provide access to its own platform.

The BBC said yesterday it had referred the dispute to the British regulator, the Independent Television Commission, because it believes BSkyB must give its channels due prominence because of the BBC's public service remit.

A BBC spokesman said the regulator had asked both BSkyB and BBC not to take any action that would be detrimental to viewers until it had ruled on the issue. This means the BBC will not begin broadcasting on the new satellite until July, according to the spokesman. BSkyB would not comment on the dispute.

The delay to the BBC's new satellite plan means consumers in the Republic will have to wait at least another six weeks before they can access the new service.

The service is potentially a competitive threat to BSkyB and the cable firms that currently dominate the Irish pay TV sector.

It would enable BSkyB subscribers to let their subscriptions lapse and still receive eight digital BBC television channels and all its radio channels for free. In addition, up to 100 other television channels would be available to any consumer with a satellite dish and a standard set top box.

BSkyB subscribers could use their existing set-top box and satellite to access the new services but cable customers would have to purchase new equipment, which retails for about €380.

But with subscription to the basic TV packages offered by BSkyB, Chorus and NTL costing about 18 per month it would take less than 18 months for users of the system to recoup the cost of buying this satellite equipment.

Despite the delay to the BBC's satellite plan, the broadcaster said yesterday it did not affect its commitment to broadcasting for free on the Astra 2D satellite .

The BBC channels that will be available under the new service include BBC1, BBC2, BBC3, and BBC4. BBC News 24, CBBC, CBeebies, BBC Parliament will also be broadcast via satellite.

The Minister for Communications, Mr Dermot Ahern, said last month his department would consider how the BBC's satellite plans would affect the Republic.