I believe the problem is ...
that Sky does so much. They generate their own content, they run the transmission system, they control the receivers, and they control the EPG. For anyone else to get in on the satellite market, they effectively have to start their own network (loads of dosh) or pay whatever Sky writes on their blank cheque ! And of course, if Sky doesn't like the competition, they can just not accept a channel for it's EPG.
The solution proposed, and which I agree with, would be to force Sky to :
a) use open standards so that they don't have monopoly control of hardware supply to their subscribers - thus allowing innovation in receivers.
b) separate the transmission from the production side.
c) offer access to the platform to anyone on equal terms - and that includes it's own channels which will now come from an independent company and NOT the company that runs the transmission system.
However, that's possibly a bit late now, the time to be doing that was years ago when it was first discussed and (as usual) our watchdog simply rolled over and let Sky tickle it's tummy. Now that freesat has launched, give it a while and we'll start seeing some commercial services on it once people have got 'open' boxes - many of the boxes coming soon will have CAM slots so they will be capable of decoding paid-for transmissions, but that will be the users choice and they will not have a base subscription to pay first.