Sky has won a "belated regulatory victory" after Ofcom, the U.K. communications watchdog, ruled that it "should no longer have to make its main sports channels available to rival BT at a fixed price," according to Henry Mance of the FINANCIAL TIMES. Ofcom said on Thursday that it was removing the "wholesale must-offer" obligation, partly because BT’s investment in sports rights had "increased consumers’ options." It will now be up to BT and Sky to agree on "commercial terms for the channels." The ruling could mean Sky Sports 1 and 2 are "not available as part of a BT subscription, or are only available at a higher price." It may also "strengthen Sky’s hand" in agreeing to a deal to resell BT’s sports channels. The company’s customers "must subscribe separately to BT to watch its coverage," including the Champions League football competition. BT said it was "very disappointed" by Ofcom’s decision. A BT spokesperson said, "We still believe that effective remedies are essential to address the failure of competition in the pay TV market." A Sky spokesperson said, "We are, and have always been, more than happy to make our channels available on other platforms" (FT, 11/19). In London, Christopher Williams wrote BT and Sky are "locked in a battle of claim and counterclaim" over why they have failed to agree to reciprocal wholesale deals for their sports channels. Sky "insists BT has effectively refused to allow BT Sport to be included in a Sky subscription," forcing satellite households to pay a separate bill. In return, BT "claims that Sky has for years exploited its dominance of sports rights to undermine potential challengers in pay-TV." Ofcom appeared to "put pressure" on Sky sides to reach an agreement, saying that it could "quickly step back in" (TELEGRAPH, 11/19). THE REGISTER's Kelly Fiveash reported BT said that it was angry at the decision and added that "it was considering legal action." A BT spokesperson said, "We still believe that effective remedies are essential to address the failure of competition in the Pay TV market, in which Sky has had around 75 percent share of retail subscription revenues for more than 10 years" (THE REGISTER, 11/19).
