Sky was obliged to come up with a distribution agreement with BT, Virgin Media and Top Up TV following to its rivals for a fixed price.
While Sky has drawn up agreements with BT and Virgin Media, it wanted to prevent Top Up TV from selling Sky Sports 1 and 2 to customers with new simple set-top boxes, with no IP or PVR capability.
Today, Ofcom published its decision and said that the relevant clause was in breach of the Television Licensable Content Service licenses for Sky Sports 1 and Sky Sports 2, and that Top Up TV should be allowed to sell the channels to consumers with basic set-top boxes.
Sky said it would appeal the decision at the Competition Appeal Tribunal. A decision is likely to be made at the same time as the wider .
A Sky spokesman said: "This confusion is a consequence of Ofcom’s muddled interpretation of its own ruling. Our contract was consistent with our understanding of Ofcom’s original view that the obligation to supply should not apply, when a distributor was simply looking to resell Sky Sports 1 and 2 on devices that wouldn’t offer a broader range of services.
"Such simple reselling would do nothing to support Ofcom’s claimed objective of promoting innovation. We do not agree with Ofcom's decision and we intend to exercise our right of appeal."
, Sky Sports 1 and 2 for £31.99 a month, and Sky Sports 1, Sky Sports 2 and ESPN for £39.99 a month.
Top Up TV is the only provider to offer the premium sports channels with no additional requirement to buy other channels or services, such as phone and broadband.
Top Up TV declined to comment.
While Sky has drawn up agreements with BT and Virgin Media, it wanted to prevent Top Up TV from selling Sky Sports 1 and 2 to customers with new simple set-top boxes, with no IP or PVR capability.
Today, Ofcom published its decision and said that the relevant clause was in breach of the Television Licensable Content Service licenses for Sky Sports 1 and Sky Sports 2, and that Top Up TV should be allowed to sell the channels to consumers with basic set-top boxes.
Sky said it would appeal the decision at the Competition Appeal Tribunal. A decision is likely to be made at the same time as the wider .
A Sky spokesman said: "This confusion is a consequence of Ofcom’s muddled interpretation of its own ruling. Our contract was consistent with our understanding of Ofcom’s original view that the obligation to supply should not apply, when a distributor was simply looking to resell Sky Sports 1 and 2 on devices that wouldn’t offer a broader range of services.
"Such simple reselling would do nothing to support Ofcom’s claimed objective of promoting innovation. We do not agree with Ofcom's decision and we intend to exercise our right of appeal."
, Sky Sports 1 and 2 for £31.99 a month, and Sky Sports 1, Sky Sports 2 and ESPN for £39.99 a month.
Top Up TV is the only provider to offer the premium sports channels with no additional requirement to buy other channels or services, such as phone and broadband.
Top Up TV declined to comment.
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