BT Vision plans to undercut what Sky charges customers for Sky Sports 1 & 2 from the start of next season - despite having to pay the full rate card price while the satellite broadcaster’s appeal against Ofcom’s pay TV ruling is heard.

Rival pay operator Virgin Media will also benefit from more flexibility over bundling Sky’s sports channels and will start broadcasting the channels in HD for the first time.

Both TV providers will kick off marketing campaigns to win new customers over the summer, despite paying the full price for the channels.

Yesterday the Competition Appeal Tribunal ruled made a compromise ruling that Sky’s rivals should pay full price but that Sky will only receive the amount set out by Ofcom in its pay TV review - the remainder will be held in a separate account and distributed once a judgement has been reached on Sky’s appeal.

BT and Virgin will effectively gamble that Ofcom’s ruling that Sky must offer its rivals sports content at a lower wholesale rate will be upheld and they will be able to recoup the difference in money which will be held in escrow.

A BT spokesman said it would now offer undercut Sky’s prices on its own sports channels.   

“We’re going to be cheaper than the current prices. And we very much want to be out there in time for the start of new football season,” he said. 

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