BBC Trust Approves Freesat

LONDON, February 27: The BBC Trust has given its provisional
approval to Freesat, the public broadcaster’s proposed free digital satellite
service.

The BBC has drawn up a plan for Freesat to be operated as a
joint venture with the U.K.’s other public-service broadcasters. The service
will provide guaranteed subscription-free access to digital services, including
the BBC's digital television channels. There will be a one-off equipment and
installation cost. The platform will be “future-proof,” offering HD and PVR
capabilities.

Acting BBC Chairman Chitra Bharucha noted: "The BBC's
Royal Charter requires the Corporation to take a leading role in digital
switchover which begins next year. From 2008 until 2012, as each U.K. nation
and region switches to digital, all households that haven't done so already
will have to choose a new way to access television. One of the benefits arising
from digital switchover will be greater choice for viewers. For those 7 million
homes yet to make the switch, it needs to be clear that the benefits of digital
television do not need to equal ‘pay television.’”

Bharucha continued: "A new, guaranteed
subscription-free satellite service would provide the public another option
when deciding which platform to choose. Over half of those yet to switch fall
outside the Freeview coverage area—for these homes, the new service would
mean being able to access BBC digital services they have already paid for via
their license fee but until now have been unable to receive on a guaranteed
subscription-free basis. We have considered the market impact and whilst there
may be some negative effects, in our view these should be balanced against the
potential positive market impact of greater choice. Overall, we believe a
“Freesat” service to be in the public interest and we hope that other public
service broadcasters would join the BBC in a joint venture.”