The BBC was previously in talks with fellow terrestrial broadcasters Channel 4, Channel 5 and ITV about forming a new venture, but those talks have so far failed to make any progress.
According to a report in The Times this morning, the BBC broke off talks after failing to agree a way of dividing up the licences.
The move would mark the first time Sky and the BBC had worked together. According to The Times, the two would bring in a third party, Crown Castle Communications, to provide transmitter expertise.
Confirmation of the partnership is due to come later this week when they apply to the Independent Television Commission for a licence to run free-to-air digital television services.
It is understood that the BBC/BSkyB service would be funded by a mixture of advertising and the BBC's licence fee, and would initially carry six channels. The channels would be Sky News, Sky Sports News, Sky Travel, BBC Four, BBC Choice and BBC News 24. It is thought that Sky One might be added later if the service attracts sufficient audience numbers.
To access the service all viewers would need to pay for would be a cheap £100 set-top box.
It is thought that Carlton Communications and Granada, the two companies behind the collapsed ITV Digital, will still apply for licences together with Channel 4. The deadline is 5pm tomorrow and the ITC has promised to give its verdict by July 4.
Carlton and Granada want to offer free to free-to-air services, but Channel 4 will be looking to find space for its subscription film channel FilmFour.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
