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BSkyB will launch its free-to-air digital service at the end of this year alongside a High Definition Television format in 2006.
The service will give users around 200 television and radio channels, with full interactivity but no monthly subscription.
There will be a one-off fee of 拢150 for purchase and installation of a Sky digibox and minidish, though users will be able to upgrade to pay-TV options alongside the free-to-air channels.
Channels included in the 200-station package cover the raft of BBC digital services including regional variations of BBC One and Two, alongside access to encrypted signals for ITV1, Channel 4 and Five.
The announcement was made today to city investors by BSkyB chief executive James Murdoch.
He said: 鈥淭hese initiatives are another step in giving consumers a choice from Sky that suits their needs at the top and lower ends of the scale.
鈥淭hey will help drive even greater take-up of digital TV services and enable Sky to enjoy a close relationship with even more customers.鈥
Full interactive services to be incorporated into the system include BBCi, ITVi and Channel 4鈥檚 Big Brother Interactive.
Meanwhile the broadcaster confirmed a High Definition Television system will be introduced in around two years time as part of a premium package.
Sky said today that HDTV is a system frequently being used by US television producers in sport, entertainment, news and drama.
Its introduction to the
The announcement may well come as a blow to Freeview, which has seen sales of set-top-boxes soar in recent months, while Sky has admitted that sales of its own boxes have slowed.
However, Andy Duncan, director of marketing, communications and audiences, said: 鈥淭his is good news for our viewers as it provides another route to all the BBC's digital services without subscription. "This follows the BBC's own view that free-to-air digital satellite is an important missing piece in the jigsaw to achieving a fully digital
In another twist to the story, Freeview announced today it had hired former BSkyB strategic operations manager Lib Charlesworth as its new general manager for operations.
Charlesworth will bhe responsible for day-to-day management of Freeview/DTV Services, the jointly owned service between the BBC, Crown Castle and BSkyB.
Duncan said: "Freeview has been a great success story, and Lib's role is to build on this."
"Freeview has certainly proved to a compelling proposition for the UK public, and I'm sure that this growth will continue."
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