Free TV rivals to fight Sky

High definition TV will be available free from the end of next year, it was announced today.

In a challenge to Sky, four HD channels are to be launched through the Freeview service, which is already in 15 million British homes.

The BBC will keep one. The other three will be auctioned off to commercial broadcasters such as ITV and Channel 4.

Currently the only way to watch programmes in ultra-clear high definition is by taking out a Sky subscription. But today's move will make Freeview a much more formidable competitor, particularly for viewers not interested in Sky's sports coverage.

Access to Freeview - which initially meant buying a separate box for about £30 - is now included in many TVs. Most are also wired up so they will be compatible with HD when it becomes available.

However, viewers with older TVs will have to replace them with HD-compatible equipment if they want to receive the new channels.

Ed Richards, chief executive of broadcasting regulator Ofcom, said: "This is a once-in-a-lifetime opportunity to upgrade digital terrestrial television. It offers benefits for viewers - who will have access to new channels and services on free-to-air - and broadcasters - who will be able to launch new services without using any new spectrum."

The upgrade to Freeview has been made possible by technological improvements overseen by Ofcom known as MPEG-4 (media streaming) and DVB-S2 (data distribution). This will increase the channel capacity of Freeview by about 20 per cent.

The new channel slots are expected to be allocated before the first regional switchover to digital next year. London's digital switchover is not scheduled until 2012.

Ofcom said applications by broadcasters for HD channels would be judged by "efficient use of the spectrum; contribution to public service broadcasting; and contribution to the range and diversity of television services in the UK".

Sir Michael Lyons, Chairman of the BBC Trust, said: "We know from previous consultations that there is much support among the public for high-definition services.

"The trust's approval of the new BBC HD channel last November made clear that all licence fee payers should have access to it as soon as possible.

"The BBC Trust welcomes the proposition announced by Ofcom today. The Trust has agreed to work with Ofcom to allow HD on Freeview, reflecting our respective responsibilities for the services and licences which facilitate the digital terrestrial television platform.

"The BBC can now move forward with its HD service on Freeview."