Virgin Media and BT have attacked BSkyB's pricing mechanism for its premium channels in a joint submission to Ofcom's pay-TV inquiry. The companies say Sky's "near monopoly" restricts consumer choice and keeps prices high. Ofcom has already recommended it should regulate the wholesale price of Sky's premium channels.

The two companies, plus Freeview provider Top-Up TV, said that they support planned pricing rules which will "result in lower retail prices for pay-TV, more choice for consumers and greater innovation" in the industry. "The current market failure makes it impossible for alternative suppliers to compete effectively with Sky," the submission said.

Sky has rejected the proposals as subsidies for less successful rivals which would cost it £700m (E764m) over four years.

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