MEDIA regulator Ofcom announced yesterday that it is to launch an investigation into the pay-TV market in the wake of the public row between BSkyB and Virgin Media.

The Office of Communications said it would look into competition issues in the pay-TV industry, which includes cable, digital terrestrial television, satellite and TV through broadband.

The decision came after the watchdog received a number of complaints regarding the loss of BSkyB channels on Virgin Media's pay-TV service.

Ofcom has also been asked by other broadcasters, such as BT, Setanta, Top Up TV and Virgin Media, to look at the market to see if competition rules have been broken.

Ofcom is currently holding an inquiry into BSkyB's £940m raid on ITV shares in November to see if Sky's acquisition of a 17.9 per cent stake in the broadcaster led to a "change in control".

At the same time, it is also looking into complaints from Virgin Media, which accused Sky of acting "anti-competitively" after the Sky deal blocked a takeover attempt by the cable company, then known as NTL.

Separately, BSkyB has unveiled plans to launch a pay-TV service on Freeview, the digital terrestrial television platform.

Ofcom said a public consultation would be needed for a licence for such a service to be approved, but added that the implications of Sky's entry into the sector would fall as part of the investigation into the pay-TV industry.