The announcement that Sky will be offering HDTV channels by 2006 will be interesting not only for people with expensive flat screen TV's but could also fundamentally affect the future digital TV strategy of other channels and perhaps even Freeview itself.

Though the BBC intends to offer at least one HD channel, it may be obliged to offer identical content via Freeview and cable platforms which could rule out a separate 'best of' channel (for example). And the provision of one or more HD channel(s) could also put the BBC in an even more awkward position relating to the payment of additional distribution costs; both Astra and Sky are likely to charge a hefty premium for the carriage of HD channels.

An interesting issue will occur if HDTV proves to be popular; notably what could happen relating to the Freeview service. At the moment there is difficulty in even accommodating additional (and poor quality) standard definition channels into the digital terrestrial lineup, but when the analogue switchoff occurs there could be enough capacity for three or more HD channels which in my opinion would be far preferable to having an extra sixteen badly pixelated shopping channels.

Australia is an example of a country that already offers a mixture of SD (standard definition) and HD channels via DTT, but it remains to be seen whether the additional space in the UK will ever be used for such purposes. But if 'HD on DTT' were to be ever adopted in the UK this would force the BBC to have only one or two channels for 'best quality content' - in other words quality as opposed to quantity - which ultimately can only be a good thing.