The trade body representing tech manufacturers such as Sony, LG and Panasonic has warned that heavy regulation could seriously undermine innovation and consumer take-up of connected TVs.

Intellect, which represents 70% of the UK digital TV equipment market, made the claim in a paper designed to inform the run-up to the Communications Bill green paper.

The document warns that DTT needs to be integrated into a broadband offering if it is to remain “compelling and competitive”.

One of Intellect’s key concerns is that the UK’s model for integrating DTT and IPTV could be different to other countries’. It said work must be done to ensure the UK “is not a technological island”.

“There should be as few UK specific measures as possible. Each one either adds cost to consumers or withdraws product and therefore choice from the market,” it said.

Intellect has also flagged concerns about the way the connected TV offering is being communicated to consumers.

“Clear communication will be essential to clarify what devices are capable of,” it said. “While software updates are likely to complicate matters, simply proclaiming that a device can connect to the internet offers the consumer little indication of available services.”

Manufacturers that have already released connected TVs in the UK include Samsung, LG and Sony, and internet-enabled set-top boxes are being widely developed.

STB joint venture YouView has been repeatedly delayed and is now expected to launch in 2012.