ITV is holding talks with the BBC about launching its programmes on a free satellite service after complaining to media regulator Ofcom that Sky is overcharging the network by millions of pounds.
ITV insists the encryption fee it pays Sky should be more like the £4m rate the BBC pays, instead of the £13m-£15m offer currently on the table.
The proposed service, which users can take up after paying a one-off fee, could offer more channels than the 30 currently on Freeview and could also target areas where digital signals are limited -- making it a financially viable operation.
The service would operate in addition to Freeview and could seriously dent Sky's ambition of winning 10m customers.
Ofcom's investigation will take until early May to complete and ITV is under obligation to its viewers to look for new ways to broadcast its channels.
BSkyB launched its free-to-air satellite service FreeSat, which offers viewers 140 channels for a one-off payment of £150, in October. The service was launched to rival the BBC's Freeview service, which is already in more than 4m British homes.
BSkyB has high hopes for the free satellite service, which it believes will be an important source of subscriber revenue in years to come.
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