Ofcom has rejected BT’s call to include a full-scale investigation into the pay-TV market in its digital communications review released on Thursday.
However, the review will look at the ease with which pay-TV customers can switch providers and the role bundling content such as sports and movies with broadband has on competition.
An Ofcom spokesperson said: “Consumers have increasingly chosen to purchase bundles which include both telecoms services and TV content. So this review includes content as part of bundles.
“This is not a detailed review of pay TV, but it does provide an opportunity for us to stand back and look at the question of bundles generally.”
BT has been engaged in a war of words with Sky as the two companies compete to offer bundles of services that include TV channels and broadband, and in some cases mobile services.
Sky has been pushing for Ofcom to investigate BT’s dominance of fibre broadband through its Openreach network, and the review leaves open the option of splitting the division from the rest of BT. However, some analysts say the review indicates such a move is unlikely.
BT welcomed Ofcom’s inclusion of pay-TV switching in the review, but said it did not go far enough.
A BT spokesperson said: “Ofcom have overseen a regime that has balanced investment with competition and we hope they will once again put the needs of the UK and its consumers ahead of those who have tried to keep the UK in the digital dark ages.
“The one area where consumers are getting a raw deal is pay TV. Ofcom have said they will consider whether to make it easier for customers to switch in this area but this isn’t enough. Much tougher action is needed to address the fundamental flaws in this market.”
Ofcom is separately looking at requirements for TV companies to offer their channels to competitors on a wholesale basis. Sky is required to let competitors – including BT – carry Sky Sports 1 and 2.
