British Satellite Broadcasting

Regulatory context[edit]

A new television transmission system, Multiplexed Analogue Components, was originally developed for high-definition television but European manufacturers developed patented variants and successfully lobbied regulators such that it was adopted by the Commission of the European Communities as the standard for all direct broadcast satellites. This had the effect that the low-cost non-European manufacturers would not only have to pay royalties to the manufacturers, but would also not have direct access to the technology, and hence would always be behind with new developments.


In the United Kingdom, the Independent Broadcasting Authority developed a variant, D-MAC, which had marginal audio channel improvements, and insisted on its use by the satellite service to be licensed by itself. In the rest of Europe, satellite television manufacturers standardised on another variant, D2-MAC, which used less bandwidth and was compatible with the extensive existing European cable systems. With the launch of BSB, the IBA became a member of the secret "MAC Club" of European organisations which owned patents on MAC variants and had a royalty-sharing agreement for all television and set-top boxes sold.


The IBA was not directed to be an "economic regulator", so the free market in lower power satellite bandwidth satellites (such as SES Astra) leveraged the benefits of the existing lower cost PAL transmissions with pre-existing set-top box technology. The IBA was rendered helpless and Murdoch voluntarily agreed to adhere to those Broadcasting Standards Commission rules relating to non-economic matters, such as the technology used. Ironically the past-deadline encryption system in the D-MAC silicon chip technology was one primary reason for BSB having to merge with Sky, and hence the Far Eastern television manufacturers had largely unfettered access to the market when MAC was wound down in favour of PAL.


After the merger, BSB D-MAC receivers were sold off cheaply and some enthusiasts modified them to allow reception of D2-MAC services available on other satellites. BSB receivers, Ferguson in particular, could be modified by replacing a microprocessor. Upgrade kits from companies such as Trac Satellite allowed re-tuning whilst other kits allowed fully working menu systems and decoding of 'soft' encrypted channels, although this required the receiver to have one of the later MAC chipsets. Some kits even included smart card readers and full D2-MAC decoding capability.