Yes crackle you are right but that's not what I'm talking about. There's freesat from sky which is free-to-view and there's freesat next year which is a new consortium. As for the current situation, what you say is entirely correct... but not for much longer.
Freesat is a service that was supposed to have launched by now but has been delayed (one of the speculated delays is so C4 could join), it's run by BBC and ITV, it will launch sometime around March next year. Next year channel 4's contract with Sky runs out. It actually costs them a lot of money to be encrypted, so the chances of them renewing coupled with the facts that they said they want to join freesat and they've let other contracts expire suggests heavily they will be in on it. Channel five on the other hand is harder to predict because they never tell us what they think but it's believed they want to join freesat after launch next year too. A lot of freesat stuff has to be sorted out too.
Likely channels available by the end of next year all the terestrial channels plus the new HD channels. So it will be similar to freeview plus the HD channels and a few other weird things. It's not pretending to be anything great but it'll be digital tv for the quarter of the population that can't get freeview and don't want anything to do with sky.