Competition try to tear Canvas

Project Canvas, the joint venture between the BBC, ITV, Channel 4, Five, BT, TalkTalk and Arqiva which will deliver TV channels through a set top box (which is connected to an aerial for receiving DTV and the Internet for IPTV) and is now known as Youview has been given the go-ahead by Ofcom.

Actually Ofcom has decided not to accept complaints from Virgin Media, IP Vision and 11 other parties including BSkyB.

Ofcom's reasons are that the IP TV market is still fledgeling and it's too soon to see if Youview will make a difference in the market, Youview should benefit consumers and if they do harm the competition will the harm outweigh the benefit and the alleged harm may not occur depending on the technical specifications of the system.

Youview has gone through many iterations and current traditional pap-per-view systems like Virgin and Sky have the most to lose if a generic IP TV system can be brought into play that utilises people's broadband to deliver high quality IP TV services. Both BT and TalkTalk are part of the project and will be delivering fibre-to-the-street cabinet/premises (FTTC/FTTP) services which will deliver 40Mb/s - 100Mb/s to the home, which is enough for HDTV, thus negating the need for people to buy satellite TV or cable TV.

The fill press release is available from Ofcom