British satellite broadcaster, BskyB, has announced plans to launch free to air digital radio and television channels, alongside its pay to view services.

The broadcaster, with an existing customer base of 7.3 million, will launch a digital satellite service later this year, offering 196 free radio and TV channels along with interactive features.

Customers will have to pay a one off cost of 150 pounds for installation and equipment including a satellite dish, but there will be no subscription charge to access the channels.

BSkyB will be competing against Freeview, in which BSkyB is a partner, and which already offers people in Britain free to air digital channels for a once only cost of 50 pounds.

BSkyB has also announced it is developing a premium range of channels for owners of wide screen televisions, plasma screens and home cinema.

Chief Executive, James Murdoch, says: “These initiatives are another step in giving consumers a choice from Sky, which suits their needs at the top and lower ends of the scale.”