As reported in
The Irish Independent, RTÉ has won a significant victory by clinching a deal to transmit its channels on the Sky satellite network without paying the Rupert Murdoch-owned TV company. In Britain, television production companies handed over huge sums in return for Sky rebroadcasting their programmes over satellite.
The revelation about the deal with RTÉ comes following extensive speculation that the Irish semi-state paid Sky £6m in return for transmitting Irish channels on the satellite network. The deal has been kept closely under wraps by both sides since it was publicly announced two weeks ago because ITV paid Sky stg£17m for carrying its programming on satellite. Both RTÉ and Sky have signed a confidentiality agreement.
However, RTÉ is to give the telecoms regulator Etain Doyle information on the deal to ensure there are no issues of concern, according to industry sources in Britain.
It is expected Ms Doyle will report back to the cable companies with her views.
The Irish cable companies are unhappy with the link up between Sky and RTÉ.
Earlier this week, Gavin O'Reilly, chief executive of Independent News & Media (Ireland), said he wanted to see details of the deal. He was critical of RTÉ as an "agent of the State" concluding a deal with Sky which was unregulated and unlicensed to broadcast in Ireland.
Cable companies NTL and Independent's Chorus pay 3.5pc of their turnover as a licence fee and will face significant competition from Sky.
It has also been learned that RTÉ is reviewing its plans for digital terrestrial TV and additional channels in light of international trends.
A spokesperson for RTÉ said "a decision is not imminent on digital terrestrial television or additional channels". Industry sources have also pointed out the Sky deal could seriously affect RTÉ's plans for four new digital channels. The broadcaster has plans for new channels carrying children's programmes, news, educational material and Oireachtas reports. The station cannot broadcast any further channels on its aerial analogue network until it upgrades the system to digital.
However, there is speculation that RTÉ's deal with Sky to carry its channels could discourage an outside company from investing in digital terrestrial.
But sources within RTÉ say the transmission business is already profitable as it receives revenues from mobile phone companies.
They hope to sell the transmission business by early next year and are confident digital terrestial television will proceed.
Industry sources say the aerial system which operates on analogue is full and cannot carry additional channels without being upgraded to digital.
If the speculation that RTÉ will not be able to go ahead with digital terrestrial proves accurate it will also scupper its plans for new channels.
The Broadcasting Act stipulates that RTÉ can only use income from its licence fee to fund programming which is "free to air", or can be received without viewers paying subscription fees.
Informed sources suggest this would cause "serious issues" for RTÉ unless it proceeds with digital terrestrial. The only other digital platforms available Sky and the two cable companies require viewers to pay a fee.
