Broadcasting regulator Ofcom is to investigate the pay TV industry.

The Office of Communications said it would look into competition issues in the pay-TV industry, which includes cable, digital terrestrial television, satellite and TV through broadband, known as TV over DSL.

The investigation comes in the wake of the public battle between BSkyB and Virgin Media which saw the basic Sky channels pulled from the Virgin service.

The investigation process could take a number of months. Virgin Media said today that it welcomed the announcement by Ofcom.

It added: "This investigation, while in its early stages, is an opportunity for Ofcom to ensure that fair and effective competition is introduced into the UK's pay TV market for the benefit of consumers."

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