Britain's regulator has told BSkyB it must make its premium channels showing sports available to its rivals for a set, lower fee.
Ofcom said it would cap the price 23% below the current rate, following a three-year review prompted by complaints from rivals Virgin Media, BT, Top Up TV and the now-closed Setanta that BSkyB sought to suppress competition.
BSkyB, which has Rupert Murdoch's News Corp as its largest shareholder and James Murdoch as its chairman, said it would appeal, but it is not clear whether that would prevent the changes from being introduced while the legal case is heard.
BSkyB already sells its channels to Virgin Media customers but the cable operator says the rates are so high it is unable to make a profit from the agreement. BT has already indicated it will offer sports channels at a lower rate to customers.
Ofcom said BSkyB must cap the wholesale rates it charges rivals for its Sky Sports 1 and 2 at £10.63 per subscriber per month, a 23.4% reduction to its previous agreements.
In a more positive ruling for the satellite group, it said it could also launch a paid-for TV service on the digital terrestrial platform known as Freeview, which would allow it to target customers who do not have a satellite dish.
