BBC Trust

2007 approval

The BBC Trust has decided to approve the proposition that the BBC invests in a joint venture to offer a national satellite based free-to-view digital service. The Trust has imposed the following conditions to this approval:

• A requirement that the funding arrangements for the participation of other broadcasters in are such that it can be demonstrated that those other broadcasters are not being subsidised by the licence fee.
• A requirement that the BBC should keep its interaction with Freeview operationally separate from its involvement with to minimise any potential effect on competition.
• The BBC, through its role in the Joint Venture, must retain sufficient control over the decisions taken by the Joint Venture to ensure that the BBC's public service objectives are not undermined.
• The BBC, through its role in the Joint Venture, should ensure that there is always an ability to access on a subscription-free basis.

In addition to these conditions of approval, the Trust considers it important that in implementing the Freesat proposal the BBC Executive is mindful of the following points, which the Trust considers to be important to the success of the venture.

• Ensuring that arrangements to secure the necessary quality and technical standards of the receivers and Electronic Programme Guide required to access Freesat are put in place.
• Taking all reasonable steps to ensure that Freesat is able to co-exist with other digital television platforms without impairing their technical operations.

There have been some detailed responses to the consultation about how the requirement for separation between Freesat and Freeview will work in light of any legitimate contact between the two ventures, for instance, in the context of Digital Switchover. A body of technical matters has also been raised in the consultation responses. These have been noted and the Trust considers that, in implementing the proposition, the BBC should, where confidentiality requests allow, take these into account as appropriate.

For more information, please read the Trust's decision in full, and the Letter of Approval from the Trust to the BBC Executive.

How did the Trust reach its decision?

In reaching this decision we have considered the likely benefits to the licence fee payer, the public value created and the potential market impact. We have had regard to our duties under the Charter and the Agreement (particularly the duties in Article 23 of the Charter) and such general guidance concerning the management of the affairs of public bodies which we consider relevant and appropriate. We have also taken into account, as appropriate, the views expressed by industry and by members of the public during the open consultation that took place between 27 February and 27 March 2007.

A report containing both analysis of the consultation responses and a sample of quotes can be found in the Trust's final conclusions document (appendix 1) above. Please see below the responses from organisations in full, where they have agreed to publication.

For greater detail on the way in which the Trust reached this decision, please read the final conclusions document above.

What is the Freesat proposition?

The BBC intends to launch a national free-to-view satellite proposition as an additional means of access for licence fee payers to access digital services, including the BBC's digital television channels and radio services. This access route will be offered on the basis of a one-off initial payment with a guarantee of no ongoing subscription charges. It will be future-proofed (for example by designing in high definition (HD) and personal video recorder compatibility). It will be marketed through retail outlets and direct retail channels such as the internet. The BBC is hoping to launch Freesat in 2008.

The intention is to establish a joint venture company to manage the marketing and technical aspects of Freesat. The new proposition will be open to other broadcasters and it is hoped that in addition to BBC services a wide range of other services will be accessible. The BBC hopes that other public service broadcasters will also wish to participate in the venture. Set top boxes will be supplied by third parties working with retailers to a specification agreed with the joint venture company.

Supporting evidence considered by the Trust

2011 supplementary approval for pay content delivered via broadband on Freesat

In July 2011, the Trust extended its 2007 approval of the BBC's involvement in the Freesat joint venture, to include the provision and listing by the joint venture of additional broadband-delivered on-demand content. This includes the option to access paid-for content, alongside its core free-to-air TV offer.

2016 removal of restrictions on online pay sports services on Freesat

In April 2016 the Trust approved the removal of the restrictions prohibiting Freesat from offering pay sports services delivered via the internet.