Ofcom asked to step into Virgin and Sky row

Ofcom has been asked by its consumer panel to use its influence to ensure a speedy resolution to the dispute between Virgin and BSkyB.

The panel, set up by the regulator to act as an independent voice on behalf of consumers in telecoms disputes, said the row between the two broadcasters was unfair to Virgin customers.

More than three million Virgin customers have been left without access to standard Sky programmes since the row began on 1 March 2007 when the two companies could not agree on payments to show channels such as Sky 1 and Sky News on Virgin's network.

The dispute does not cover Sky's premium sports and movie channels. But earlier this month Virgin threatened to take the dispute to the High Court as the row escalated.

Virgin has said during March if any of its television customers wanted to move to Sky in order to get these channels, it would not hold them to their contract.

But while consumers have the option of switching to a different distribution channel, it is a complex and time-consuming operation.

Writing to Ofcom chief executive Ed Richards, consumer panel chairman Colette Bowe expressed concern that consumers are finding it difficult “to get what they want - and are paying for".

She asked Ofcom “to use your influence as the regulator of this market to facilitate an early resolution of this dispute in the interests of consumers”.

She said the panel believed the recent row is just “the latest of a series of disputes between operators in this sector," and it is now concerned that problems are developing in this market that consumers will not find easy to resolve themselves.

The Ofcom panel is the second consumer organisation to take an interest in this battle.

The National Consumer Council (NCC) said it was considering bringing a 'supercomplaint' against the two companies.

The NCC’s deputy chief executive, Philip Cullum, said: "The fallout from the dispute between Virgin Media and BSkyB is bad news for consumers. Over three million Virgin Media customers have been left high and dry.

"They have lost some of the most popular channels, they aren’t getting a discount, and they’ve had little notice."

A Virgin spokesman said there was no official comment about the possibility of Ofcom stepping in to resolve the situation, but it had welcomed the NCC's move and would cooperate with the organisation.

Sky also said it had no comment to make specifically in relation to the Ofcom consumer panel announcement.

However when the NCC made its announcement, a Sky spokesman said "“We want our basic channels to be available on the Virgin Media network ... The reality is that there is no way for Sky to reach these customers unless Virgin Media is prepared to reach an agreement."