The Independent Television Commission has given the go-ahead for BSkyB to offer a full range of multichannel TV service over networks in Britain, on top of its existing digital satellite service.

BskyB's arrival into the UK TV market will significantly increase existing competition between existing operators like ITV Digital, owned by Granada and Carlton Communications and cable groups Telewest and NTL.

BSkyB, with 5.45 million subscribers, plans to deliver its services via broadband cable networks and through high-speed digital subscriber line (DSL) equipment on the local networks of companies like British Telecommunications and Kingston Communications, the ITC said in a statement.

At the same time, three new BBC television services and five new radio services were given conditional approval by the Culture Secretary, Tessa Jowell.

BBC Three, however, the planned replacement for BBC Choice, was not given approval.

The new digital services include: two new channels for children - one for children aged six to 13, another for those aged under six years, as well as BBC Four - a service for "anyone interested in culture, arts and ideas", which will replace BBC Knowledge. There are also to be five new digital radio services: Network X, for a young specialist audience, Asian Network, for an Asian audience, Five Live Sports Plus, for sports lovers, Network Y, an archive music and voice channel, and an extension of the BBC World Service to the UK.

Director-General Greg Dyke said: "We are delighted that the Secretary of State has approved eight of the nine services we proposed.

"However, we are surprised and naturally disappointed that the Secretary of State is not yet convinced by our plans for BBC Three.

The Culture Secretary is expected to name a new BBC chairman shortly.