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Old 18-01-2010, 08:01   #60
Ignitionnet
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Join Date: Jun 2008
Location: Leeds, West Yorkshire
Age: 47
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Re: OFCOM ready to rule?

Quote:
Originally Posted by pedg View Post
According to guardian
The satellite broadcaster is expected to launch an immediate legal attack on any moves to cut its prices but the regulator will use its powers to introduce the measures while the lawyers make their arguments.

So if (and hopefully when) they do that it would mean that the price would have to drop immediately so it would be a brave Cameron to reverse something like that immediately he takes office.

Personally I am not so much interested in the price as having things like the HD channels and the 'other games on the red button' streams. Assuming that is covered by the same rules then we could get them soon and again it would be a brave politician to come in and say "Sorry cable and BT viewers but I am going to take those channels away".
Be interesting to see if Ofcom can just push this through. Regardless of what powers Ofcom think they have I believe they can't simply force a change through if BSkyB can obtain an injunction. Worst case BSkyB can tell them to go to hell and Ofcom will have to begin infringement proceedings, Ofcom cannot lower BSkyB's prices for them, they can threaten them with a stick if they don't but it would be a very, very messy battle. IANAL though!

EDIT: Incidentally all this stuff about BSkyB charging VM more for the channels than their own customers pay isn't true, at least for the bundle. For individual packages beyond this a comparison is 'tricky' as I suspect Sky take a hit on SS1 as they know so few customers take it on its' own.

According to The Guardian VM pay 23.40 for the Sports and Movies bundle, Sky charge their customers 25.50. Further, the costs to VM of carriage of these channels specifically over and above the rest of their selection is marginal. Perhaps they are trying to justify their upselling price strategy on TV?

Quote:
£37.00 a month with TV Size:M
£33.50 a month with TV Size:M+
£32.50 a month with TV Size:L
£27.50 a month with TV Size:XL
Again the timing of it all seems odd until one notes an election coming up, the Guardian got it spot on. This is Ofcom waving its' willy before it gets chopped off.

Quote:
But Ofcom is desperate to prove itself as the consumer's champion at a time when the Conservatives have made it clear they would dramatically reduce its ability to set policy if they were in power.
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