As widely anticipated Ofcom has told Sky this morning it must sell its premium services to rivals firms for less to boost competition in the UK

Ofcom believes that Sky’s grip on the live sports and premium film market is giving it an unfair advantage in the UK; because these elements are a factor in influencing consumers when it comes to buying broadband and telecom services.

The move should allow the likes of Virgin and BT to now offer these products making their bundle of services more attractive to consumers.

Many observers see this as a major shake-up of the UKmedia market – and a serious attack on Sky, one of the only sizeable media operation to be founded in the UKover the last 20 years.

It will now launch a strong appeal. Said one source: "The Communications Act gave Ofcom a role in promoting the interests of competition but hasn't determined the limits of these powers. Therefore, does Ofcom have the power to intervene? It's not using competition legislation and hasn't found market abuse or anti-competitive behaviour."