BSkyB to pull channels from Virgin Media

BSkyB looks poised to pull its major channels from rival, Virgin Media cable network after talks collapsed between the two groups.

The broadcasting heavyweights could not agree a rate for the channels, which include Sky One, Two, Three, Sky News and Sky Sports News.

But the move will not affect the availability of Sky's premium movies and sports channels.

Virgin Media claims that Sky tried to deliberately sabotage the talks by doubling the price of its channels.

Virgin Media Chief executive Steve Burch said Sky's behaviour was "heavy handed and anti-competitive", adding "consumer choice has been reduced as a result".

The group, formed by NTL's takeover last year of Virgin Mobile and Telewest, said it hoped to continue discussions, despite suggesting the channels were about to disappear from the Virgin network.

The breakdown in the relationship between the two companies comes shortly after Sky announced plans to withdraw channels from free-to-air digital terrestrial television platforms, such as Freeview.

Sky is set to broadcast the channels - Sky Three, Sky News and Sky Sports News - on a terrestrial pay-TV service, set for launch in the summer.

The move will be closely followed by industry watchdog Ofcom who said it would look in to whether or not Sky's plans would "unacceptably diminish the appeal" of Freeview.

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