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The media regulator has announced that it will be looking into the proposals which it says raise a number of important issues, including a consideration of how Ofcom "can best ensure fair and effective competition for the benefit of consumers".

Ofcom says it expects to issue a consultation document in the autumn, provided there are no further delays in the conclusion of outstanding technical and commercial issues between the applicants. Ofcom's normal consultation period is ten weeks, to be followed by the issuing of a statement, which it says it would hope to publish early next year.

In the meantime, National Grid Wireless is obliged to ensure that Sky's free-to-air channels remain on pending the outcome of Ofcom's review.

Sky has reacted to the announcement saying that its pay service "will increase competition and bring a better choice of programming to the DTT platform", adding that "while is it regrettable that Ofcom feels unable to begin its consultation before the autumn, we'll continue to engage fully with the review and work towards launching the service as soon as possible".