Sky's pay-TV plan on hold again

Sky wants to offer sport as part of a pay-TV service on Freeview

Sky's plan for a pay-TV service on Freeview has been placed on hold again after media regulator Ofcom announced the idea was to face further scrutiny.

The broadcaster wants to offer four paid-for Sky channels on digital terrestrial television, offering news, sports, films and entertainment.

It would replace Sky News, Sky Sports News and Sky Three on Freeview.

Ofcom said further consultation was needed as part of its inquiry into competition in the wider pay-TV market.

This began in March 2007, after Virgin Media lost access to some channels from Sky, which dominates the pay-TV market.

The regulator decided a consultation on the four proposed channels would begin by the end of the summer and would be considered "alongside the wider market investigation".

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Sky first announced its plan - branded Picnic - in February 2007 and hoped to launch it last year, before Setanta began screening Premier League football on digital terrestrial television.

It is believed the latest development will mean no final decision is taken on the four proposed channels until after 2009.

Sky said it would continue to work with Ofcom as the process moved forward.

Freeview users can currently subscribe to Setanta Sports 1, which gives access to live football, cricket, golf and boxing.

They can also pay for extra on-demand content through Top-Up TV.