Life's a Picnic with Sky

Sky has announced a new broadband, terrestrial TV and telephony package called Picnic.

Subject to approval from industry regulator Ofcom, Picnic will allow you to pick and choose which of the services you want with a clearly defined pricing structure, according to the company.

The hurdle that Picnic needs to clear concerns the TV package – it will be delivered on a digital platform rather than via satellite, like Sky's traditional TV services.

Ofcom will need to decide whether this would have a negative effect on competition in the market.

James Murdoch, Sky’s chief executive, said: "The launch of Picnic will be a big step forward for customers who are hungry for value and simplicity. We are looking forward to the conclusion of the regulatory approval process so we can get on with delivering a great service and real savings to customers."

Sky said that it's unbundled telephony network is available to 70 per cent of the UK population, which should theoretically allow it to deliver broadband at up to 16Mbps.

UPDATE: In a further development, the Competition Commission has found that Sky's 17.9 per cent stake in broadcaster ITV does restrict competition in the TV market.

"As a pay-TV operator, BSkyB faces competition from the free-to-air TV offer, of which ITV is an important part. BSkyB would therefore have both the ability and incentive to take advantage of opportunities to weaken ITV or prevent it from taking actions that would threaten BSkyB’s interests," said Peter Freeman, chairman of the Competition Commission.

The Competition Commission could now order Sky to sell its stake in ITV.

www.picnicnews.com
www.sky.com
www.ofcom.org.uk

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