BSkyB should be ready to broadcast digital TV in June

The pay television company, BSkyB, opened the way this week to a June launch for its planned 200-channel digital television service after it emerged that some set-top boxes were unlikely to be available before then.

BSkyB said it was on track to launch its digital service in the "second quarter" of the year. Until now, it has talked of a "late spring" launch, which has been widely interpreted by analysts to mean late April or May.

BSkyB also confirmed that SES, a Luxembourg-based operator of satellites, would move one of its Astra satellites into a new orbit to guarantee a prompt launch.

This follows a delay to a satellite that BSkyB will eventually use.

The company's comments came after Pace Micro Technology, one of four manufacturers of the set-top boxes needed to unscramble signals, said it would not begin the production of digital boxes before June.

Although BSkyB may be able to obtain boxes from at least one other supplier before then, another company said it was "not in a position to start production for a little while", and could not supply boxes for a May launch.

BSkyB also faces having to finance the initial production of set-top boxes because British Interactive Broadcasting, a service it owns jointly with other companies, has been delayed by a European Commission inquiry.

BSkyB said it intended to give a status report on digital and interactive services at its interim results in February. It was "working closely" with the Commission with regard to BIB after receiving clearance from a range of British regulators.

It emphasised that "significant volumes" of its set-top boxes would be available in the fourth quarter sales period leading up to Christmas, and it was on track to become the first digital television service in Britain.

Mr Neil Blackley, a media analyst at Merrill Lynch, the US investment house, said a June or July launch risked a clash with the World Cup, which is likely to draw big audiences on terrestrial television.

Mr Blackley said it would be better for BSkyB to carry out a test launch during May before "a big fanfare" and marketing campaign in August.

He said it would be wrong to attempt to compete with marketing for the World Cup.