Independent Broadcasting Authority rival Sky Television plc was able to launch an analogue service and intended to overshadow BSB by leasing transponders from Société Européenne des Satellites' RCA Astro-built satellite, Astra 1A. After around a year, the company merged with BSB. The IBA was disbanded as part of the Broadcasting Act 1990, being replaced on New Year's Day 1991 by the Independent Television Commission (ITC) (which also absorbed the Cable Authority), and the Radio Authority (RAu), which have since been merged with other regulators such as Broadcasting Standards Commission (BSC) and Oftel (Office of Telecommunications) to form one regulator, Ofcom. All of the
British Satellite Broadcasting launch of its own satellites costing an estimated £200 million. When BSB finally went on air in March 1990, 13 months after Sky, the company's technical problems were resolved and its programming was critically acclaimed. However its D-MAC receivers were more expensive than Sky's PAL equivalents and incompatible with them. Many potential customers compared the competition between the rival satellite companies to the format war between VHS and Betamax home video recorders, and chose to wait and see which company would win outright, in order to avoid buying potentially obsolete equipment. Both BSB and Sky companies had begun to struggle