Project Canvas, the controversial BBC-backed operation to open up IPTV (internet protocol TV) services for the UK has finally been given the go-ahead by the Office of Fair Trading.
The joint project between the BBC, ITV, Channel 4, Five, BT, TalkTalk and Arqiva has been vigorously opposed by BSkyB, Virgin Media and various TV manufacturers (many of whom have their own IPTV systems on their latest models) but now only requires the full approval of the BBC Trust, which has already granted its provisional approval.
Sheldon Mills, the OFT’s director of mergers, said: “Our investigation has confirmed that the joint venture partners, including the BBC, do not intend to transfer an existing business into the venture. Therefore, regardless of the potential significance of the Project Canvas venture for the future of internet connected television, the notified proposals do not give rise to a merger qualifying for substantive investigation by the OFT.”
Early support has been forthcoming from set-top box manufacturer Humax, an official supporter of the project. Graham North, Humax’s commercial director, said: “The announcement from the OFT regarding Project Canvas is great news for the digital television industry. Providing a common standard is a positive step that will guarantee the viewer a quality service that is reflective of UK broadcasting standards, delivered on a platform with a trusted name. It will also guarantee a viewing experience that is consistent regardless of the hardware or device being used to access the content.”