19th Nov 2015 08:37
LONDON (Alliance News) - Shares in Sky PLC were up in early trade Thursday after UK telecoms regulator Ofcom Thursday said it has removed regulation that requires Sky to offer its Sky Sports 1 and 2 channels on a wholesale basis.
The regulator said it had made the decision to remove the regulation as Sky is now widely supplying these channels to other pay television providers in commercial terms. However, it said it will continue to monitor market developments closely, and if necessary will "quickly step back in."
The regulation was introduced in 2010 to promote greater competition in pay television, however last year Ofcom began a review to determine whether the regulation remains appropriate. The channels are now available through commercial wholesale arrangements with other pay television competitors, including BT Group PLC, TalkTalk Telecom Group and Virgin Media PLC.
Additionally, Ofcom highlighted BT's investment in building its own sports offering, BT Sport, and new providers that have entered or plan to enter the television market, including EE Ltd and Vodafone Group PLC.
The regulator is examining the way in which pay television content is bundled with telecoms services as part of its wider strategic review of digital communications.
Shares in Sky were up 2.5% at 1,119.00 pence early Thursday morning, one of the biggest gainers in the FTSE 100.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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