The UK Office of Fair Trading (OFT) has thrown out its investigation of Project Canvas, an open standard that will deliver subscription-free broadband TV services directly into homes via ISPs and special IPTV set-top-boxes, because it does not have jurisdiction to review it under the merger provisions of the Enterprise Act 2002.

The project is part of a Joint Venture (JV) between TV broadcasters and Internet Service Providers (ISP), most prominently including the BBC, ITV, BT, TalkTalk, Channel 4, Arqiva and Channel Five. Both Sky ( Sky Broadband ) and Virgin Media have raised opposition to the system, which could give them a bit of extra competition.

Canvas would essentially allow IPTV and online video services , such as the BBC's iPlayer , to be viewed via TV sets. It would also bolt-on traditional Freeview TV channels and recording capabilities (the set-top-boxes could cost up to £200).


Unlike the Project Kangaroo joint venture, which was blocked by the Competition Commission in 2009, it is not proposed that the JV Partners will contribute any video-on-demand (VoD) content or other business to Canvas, and Canvas will have no role in aggregating, marketing or directly retailing any such television content.


The decision does not preclude the application of other provisions of Competition law and other relevant legislation, though it does effectively give Project Canvas the GREEN LIGHT to proceed with its plans. It's worth remembering that the OFT only launched an investigation after Project Canvas approached the OFT in March 2010 to seek formal clarification over the proposed venture’s status.

Earlier this year the director of Project Canvas and Internet TV Programme's at the BBC, Richard Halton, told the IPTV World Forum that broadband television services would see a 70% market growth by 2015. In addition it could also help to add up to an additional 870,000 broadband ISP connections in the UK (here).

The BBC Trust's final decision on the project is expected soon.