I can't see how this could negatively impact expats except that they might have to buy a new satellite box if encryption was introduced on all the free channels.

But this would have a positive side too - no need to put the channels on Astra 2D (targetted on the UK) any more so much better coverage over Europe. Plus, getting a box/card would be pretty trivial for anyone with UK connections.

All in all this can only be good news for expats. Most probably very bad news for Sky though as I imagine they have quite a few expat subscribers who got onto their service in order to receive English telly in Europe. I've seen estimates of up to a million 'illegal' Sky subscribers - With a widely publicised 'free' UK satellite network I can see Sky losing a lot of lucrative subscriptions abroad.