BSkyB negotiating use of Freesat name with BBC

The BBC is in talks with BSkyB about allowing the commercial broadcaster to use its "Freesat" trademark. BSkyB, whose shares have collapsed after poor results, announced last week that it was launching the free-to-air satellite service, which has not yet been named, in October.

Commentators have already dubbed the service, which offers 200 channels for a £150 one-off payment and no subscription charge, "freesat".

BSkyB's chief executive, James Murdoch, said that it was still in talks with the BBC about what involvement it could have in the Sky service.

A BBC spokeswoman confirmed that one option being discussed is to allow BSkyB to make official use of the Freesat name, which it has copyrighted. "This is a distinct possibility," she said.

The BBC has been in talks for months with broadcasters, including BSkyB, about launching its own free-to-air, digital satellite service. It could share the trademark with BSkyB, allowing the commercial broadcaster to call its own service Freesat 1, for example. The BBC could then launch its own alternative Freesat 2 service, jointly marketing the Freesat brand with BSkyB.

Alternatively, the BBC could drop its own plans altogether and team up with BSkyB. A BSkyB spokesman said: "We have not decided what to call it."

A free-to-air, digital satellite service will be needed to achieve the analogue switch-off by 2012, the target set for the BBC by the Government.

Paul Richards, an analyst at Numis Securities, said: "Having more than one free satellite service would be confusing and might make the switch-off harder to achieve. Joining forces would make more sense."