Ofcom on Thursday lifted the ‘wholesale must offer’ (WMO) rule that requires Sky to supply Sky Sports 1 and 2 to rival TV providers at a regulated price, a decision met with consternation by BT.
The U.K. telco regulator found following a consultation that Sky now offers sports channels to competitors, most notably TalkTalk and Virgin Media, without the need for any coercion on the part of Ofcom.
In addition, Sky Sports is also available on Sky’s Now TV streaming service, which can be accessed on rival pay TV platforms including EE TV, Apple TV and various games consoles, smartphones and tablets, Ofcom noted.
"We are pleased that Ofcom has decided to remove the WMO condition. As the evidence demonstrates, we are, and have always been, more than happy to make our channels available on other platforms," said Sky, in an email to Total Telecom.
Meanwhile, the sports TV market has become more competitive, thanks largely to the £2 billion investment by BT into broadcast rights for 25% of top-flight U.K. football matches and exclusive rights to the UEFA Champions League.
BT is the only TV provider receiving Sky Sports 1 and 2 under the WMO rule, and the U.K. incumbent is not happy about Ofcom’s decision.
"BT is very disappointed," said a spokesman for the telco, in an email to Total Telecom. "We will consider our legal options in light of this decision and, in the meantime, continue to offer our customers access to Sky Sports 1 and 2.
"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% share of retail subscription revenues for more than 10 years," he added.
Ofcom said it will continue to monitor the state of play in the pay TV market following Thursday’s decision, and intervene if necessary.
"In pa rticular, Ofcom wants to be sure that consumers continue to have access to, and a choice of, packages and services containing Sky Sports 1 and 2," said Ofcom, in a statement.
BT’s spokesman welcomed the promise of close regulatory oversight.
"Ofcom has said it is important for pay TV retailers to have access to key Sky content to be able to compete effectively in this market, and that they want consumers to have access to these channels. We therefore expect Sky to behave appropriately so that we can continue to offer our customers access," he said.
