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 (230 watts) satellite was dropped, and no winner was precluded from buying a foreign satellite system. The IBA received five serious bids for the Direct Broadcast Satellite franchises. It also received submissions from The Children's Channel and ITN to make sure their programmes were used on any successful bid. British Satellite Broadcasting won the fifteen-year franchise on 11 December 1986 to operate the Direct Broadcast Satellite System, with a licence to operate three channels. BSB forecast 400,000 homes would be equipped during its first year, but some doubts were cast whether this was possible. The Cable Authority welcomed the service,