Sky has been left livid by Ofcom's ruling on pay TV, and will fight tooth and nail in the law courts to overturn what the call an 'unprecedented and unwarranted intervention'.

In a terse response to Ofcom's three decisions, Sky indicated that it would fight the media watchdog in court over its decision that it should set the wholesale prices for Sky Sports 1 and 2.

"There should be no doubt that Ofcom's actions represent an unprecedented and unwarranted intervention," said Sky's official statement.

Innovation and choice

"This is a marketplace where customers are well served with high levels of choice and innovation. Consumers will not benefit if regulators blunt incentives to invest and take risks," added a Sky spokesman .

"After three years of engagement with Ofcom, we now look forward to a judicial process which will apply impartial analysis and clear legal standards."

Ofcom's decision is best described as a sweetener, offering the potential for Sky to launch its Picnic pay-TV over the digital terrestrial television.

Picnic has been mothballed for two years and was proposed back in 2007 – and with the world of television moving steadily towards things like IPTV, the DTT option is certainly not as attractive as it was.

BT has publicly insisted that it is 'disappointed' by the ruling, although it stands to benefit hugely from Ofcom's decision.