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In reaching its final decision the Trust has considered the likely benefits to licence fee payers, the public value which would be created by the proposition and the potential market impact. The open consultation on the Trust's provisional conclusions demonstrated widespread support for the proposal.

The Trust has today published a full explanation for its decision, a summary of the responses from individuals to the consultation and, where permission has been granted, the responses from organisations in full.

Acting Chairman of the Ö÷²¥´óÐã Trust, Chitra Bharucha, said:

"Envisaged as a joint venture, "Freesat" will ensure the public remain in control of how they access the Ö÷²¥´óÐã's television channels and radio networks for which they have already paid. "Freesat" is guaranteed to remain subscription free, ensuring that the benefits of digital television do not equal "pay television". The results of the public consultation have reinforced our view that the Ö÷²¥´óÐã's proposition for "Freesat" will create significant public value.

"The Trust has asked Ö÷²¥´óÐã management to move swiftly in developing plans. On behalf of all licence fee payers, and particularly those outside Freeview coverage areas, we have asked Ö÷²¥´óÐã management to be ready to launch "Freesat" as quickly as possible to ensure that licence fee payers gain the maximum benefit in the lead up to digital switchover."

The consultation generated over 700 responses, 674 of which contained sufficient information to be included in the Trust's analysis. Twenty-five responses came from organisations, while the majority of those submitted were from individuals. In response to each of the questions posed in the consultation:

• 93% considered that the Ö÷²¥´óÐã should be taking action to improve access to its digital services in the lead up to digital switchover
• 86% believed the proposals were valuable to all licence fee payers
• 93% considered the proposals to fit with the Ö÷²¥´óÐã's public purposes
• 92% felt the proposals would benefit consumers
• 90% thought it unlikely that "Freesat" would lead to the market exit of existing participants or create a barrier to future innovation

The majority of organisations who responded to the consultation were broadly supportive of the "Freesat" proposition. Some questioned whether it is the responsibility of the Ö÷²¥´óÐã to create additional choice for consumers and if such a proposition should be publicly funded and some respondents also questioned the Trust's decision not to apply a "Public Value Test" before reaching its decision.

Chitra Bharucha said:

"For propositions which the Charter & Agreement describe as "non-service", it is for the Trust to decide the process by which it should reach its decisions. In the decision document we explain in detail the process we have followed and why we believe it to have been appropriate in this case. The Trust is satisfied all necessary factors have been considered and that we have reached a final decision transparently and following a process and timetable which is in the public interest.

"The Royal Charter places an obligation on the Ö÷²¥´óÐã to take a leading role in digital switchover. Meanwhile, the Agreement states that the Ö÷²¥´óÐã "must do all that is reasonably practicable to ensure that viewers, listeners and other users are able to access the UK public services intended for them". The Trust's decision to approve "Freesat" is driven by our duty to meet the obligations placed upon the Ö÷²¥´óÐã in the Charter & Agreement. "Freesat" will also deliver more choice to consumers and introduce competition to the market, and whilst we welcome this positive impact, it is not the objective of our decision.

"It was appropriate for the Trust to consider the potential market impact of this proposal. We have examined the industry responses to our provisional conclusions very carefully. In direct response to some of the issues raised we have imposed additional conditions on our approval of "Freesat". The conditions relate to the transparency and integrity of the use of licence fee funding, quality control, and technical co-existence with other digital television platforms."

Specifically, the Trust's conditions of approval are:

1. A requirement that the funding arrangements for the participation of other broadcasters in "Freesat" are such that it can be demonstrated that those other broadcasters are not being subsidised by the licence fee;
2. A requirement that the Ö÷²¥´óÐã should keep its interaction with Freeview operationally separate from its involvement with "Freesat" to minimise any potential effect on competition;
3. The Ö÷²¥´óÐã, through its role in the Joint Venture, must retain sufficient control over the decisions taken by the Joint Venture to ensure that the Ö÷²¥´óÐã's public service objectives are not undermined;
4. The Ö÷²¥´óÐã, through its role in the Joint Venture, should ensure that there is always an ability to access "Freesat" on a subscription-free basis.
5. Also, the Trust has made clear to the Ö÷²¥´óÐã Executive that, in implementing "Freesat", arrangements should be sought to secure the necessary quality and technical standards of the receivers and Electronic Programme Guide required to access "Freesat"; and that all reasonable steps are taken to ensure that "Freesat" is able to co-exist with other digital television platforms without impairing their technical operations.

Ends.

Notes to editors

1. Ö÷²¥´óÐã management's proposition is to launch a national free-to-view satellite platform currently referred to as "Freesat". "Freesat" would provide guaranteed subscription-free access for licence fee payers to digital services, including the Ö÷²¥´óÐã's digital television channels and radio services. It would be offered on the basis of a one-off initial payment only, to cover the cost of equipment and installation. The service would be future-proofed, through the designing in of high definition and personal video recorder compatibility, and would be marketed through retail outlets and via the internet. Ö÷²¥´óÐã management's intention is to establish a joint venture company with other public service broadcasters to manage the marketing and technical aspects of the new platform. Set top boxes and installation would be supplied by third parties working with retailers to a specification agreed with the joint venture company.
2. Under the terms of the previous Charter the Ö÷²¥´óÐã submitted a proposal, approved by the Governors, to the Department for Culture, Media and Sport in June 2006 to launch a free open standard satellite service. However the Charter expired before the Secretary of State reached a decision and, in line with the terms of the new Charter, the decision now rests with the Ö÷²¥´óÐã Trust. The Trust received the open file from the Secretary of State in January. Further to detailed scrutiny at its Finance & Strategy Committee and the provision of further independent advice, the Trust reached its provisional conclusion at its meeting on 21 February.
3. The Trust's provisional conclusion – to approve the proposition subject to the outcome of a public consultation – was published on 28 February. The Trust discussed the results of the consultation at its meeting on 25 April, and decided to approve the proposition, subject to conditions outlined above.
4. The Trust has published its decision today, along with the evidence on which it is based and an analysis of the consultation responses. Of the 25 responses from organisations, 20 are published in full (with all or parts of the others not published on grounds of confidentiality). Published documents

• Ö÷²¥´óÐã Trust decision document (April 2007)
• Analysis of consultation responses from members of the public (April 2007)
• 20 actual responses to the consultation from 19 organisations
• Trust Unit review of market impact (January 2007)
• Ö÷²¥´óÐã Governance Unit report on market impact (November 2006)
• Fathom Partners and independent review of market implications commissioned by DCMS (December 2006)
• Frontier Economics independent review of the Governance Unit and Fathom/Indepen market impact reports commissioned by the Ö÷²¥´óÐã Trust (February 2007)

The above documents can be found at www.bbc.co.uk/bbctrust

5. The new Charter & Agreement sets out a range of approval processes designed to create a "tiered" approach to decisions. Where the publicly-funded Ö÷²¥´óÐã is making a significant investment, but not in a new service that commissions its own content (ie, Ö÷²¥´óÐã One, Radio 3 etc), the new Agreement defines this as a non-service. "Freesat" falls into this category. When considering non-service applications from Ö÷²¥´óÐã management, it is for the Trust to decide how it will consider the public interest and market impact issues. Clause 22 of the Agreement.