[Media Boy UK]

Sky files Virgin court response

BSkyB has filed its defence against Virgin Media in the High Court, stating that the cable company's accusation of anti-competitive behaviour is "without foundation".

In a statement issued today, Sky said Virgin Media customers deserved to know that the reason they were without of the basic channels was because the cable operator's management team "chose to stop negotiating months ago".

It added that the compromise offer made by Sky to Virgin Media in May - "which was rejected by Virgin with no counter-offer", had requested a like-for-like increase of just 6% in the cost of carrying Sky basic channels.

Two months later "Almost two months have passed since then and Virgin has yet to put forward an alternative proposal," Sky said adding that Virgin Media's legal claim did not fit with either its public criticism of the quality of the Sky basic channels or its admission that it chose not to carry them for commercial reasons.

The statement said: "In February, Sir Richard Branson called Sky One programmes 'pretty rubbish' and, only last week, Virgin Media boss Steve Burch publicly confirmed that it was a 'business decision' not to carry the Sky basic channels.

"The fair thing to do is for Virgin's management to put customers first and do a deal."

Change of ownership Referring to Virgin Media's potential change of ownership, following the cable operator's admission yesterday it had been approached by a bidder, understood to be the Carlyle Group, Sky said: "If there is a change of ownership at Virgin Media, we hope that any new management would take a more rational and credible approach and return to serious commercial negotiations with the aim of restoring Sky basic channels to Virgin Media customers within days".

"Our response shows that Virgin Media's claims are without foundation."

Sky was given three extensions by which to submit its defence to the High Court.
Info from Broadcast.