Broadband TV – Project Canvas cleared by regulator

The Office of Fair Trading (OFT) has cleared the controversial Project Canvas, the IPTV joint venture between the BBC, ITV, Channel 4, Five, BT, Talk Talk and Arqiva, for launching.

The OFT took this decision on the basis that the JV proposal is not a merger of these companies and that it did not have jurisdiction to review it under the merger provisions of the Enterprise Act 2002.

This would mean that the internet connected TV service will go live by this year after a final approval by BBC Trust, which took the initiative.

Once launched, Project Canvas customers can get a set-top box that would cost between £100 and £200 to watch a range of video contents including BBC iPlayer on their TV sets using their broadband internet connection.

The ISPs Sky and Virgin Media have opposed the JV on the ground that the JV partners could transfer an existing business into the Project, just similar to the Project Kangaroo which was blocked by the Competition Commission last year.

The Project Canvas partners welcomed the OFT decision, Richard Halton, the director of Project Canvas, said.

The partners are ‘committed to create an open platform that delivers a connected future for free-to-air TV and a competitive market for internet-connected TV services in the UK.’ he added.