Ofcom has been called in to rule a dispute between ITV and BSkyB after the terrestrial broadcaster complained about Sky's planned charges for ensuring satellite viewers get the correct regional service.
Ofcom has been called in to rule on a dispute between ITV and BSkyB after the terrestrial broadcaster complained about Sky's planned charges for ensuring satellite viewers get the correct regional service.

ITV has told Ofcom that Sky's proposed bill for providing the service is not fair or reasonable and discriminates against them when compared to charges made by other broadcasters for similar services.

The regulator has four months to make a ruling unless the two parties are forced back to the table to hammer out a deal.

The action comes after months of wrangling between the two broadcasters about ITV's new contract on the platform, which was due to have been renewed in November.

ITV believes the amount of money it pays to have its channels encrypted and regionalised is far too expensive, saying it should be slashed from£17m to about£4m - the same amount the BBC now pays for a similar service.

The broadcaster is still threatening to follow the BBC and go "unencrypted", which would see viewers outside the UK able to pick up its channels, if a deal is not tied down. ITV has already launched ITV3 without encryption.