Sky challenges BBC plans for Project Canvas catch-up TV service

BSkyB has attacked the "deficient" consultation into the BBC's push to bring online TV from the PC into the living room, and called for the regulators to step in to prevent unfair competition.

Sky yesterday demanded the BBC Trust scrutinise "in as transparent a way as possible" the BBC's plans to launch Project Canvas. It also called for a review by the regulator, Ofcom.

The trust, an independent body that oversees the BBC, is considering the current proposals, but Sky criticised the consultation's "lack of clarity".

The broadcaster's submission to the trust, published yesterday, said: "There are a range of implications in terms of affecting the development of existing or future services from the commercial sector – and hence Canvas has the potential to distort competition."

The BBC's joint venture with ITV and BT was first mooted last year to bring together television, video on demand and internet content through a set-top box. The participants see it as the next generation of Freeview.

Yet, Sky is furious over the lack of detail to the proposals, and the insufficient time given to make a response. This could lead to the trust reaching an "unsound and invalid decision," according to the group. It added that the review called into question the trust's independence.

Sky's submission also added that: "As such, the proposals are likely to qualify for review by the OFT as a 'relevant merger situation'."

Sky calls for a full public value test run on Canvas, the same process the BBC's iPlayer, the online catch-up TV service, underwent. The move would also bring in Ofcom to run a market impact assessment.

Ofcom has already fired a broadside at the trust, in a letter published last month on its website. The language was diplomatic, but Ofcom is understood to be concerned by some of the issues surrounding the BBC's participation in Canvas. It also mentioned the possibility of OFT scrutiny. A spokeswoman for the OFT declined to comment on the matter yesterday,

The Trust has completed the first round of consultation, which involved submissions from interested parties, and will publish its interim conclusions early next month.

There will be a second period of consultation and the final conclusions are expected to be announced in July. Those involved hope to avoid the issues that surrounded Project Kangaroo, a joint platform for catch-up television, which was killed off by the Competition Commission this year as anti-competitive. Sky also criticised the proposals for Kangaroo in a submission at the time.