BSkyB considers cheap broadband in U.K.

April 7, 2006

BSkyB is reportedly considered offering low-cost broadband to its British customers as part of a move into the telephone-line broadband market.

The Guardian said Friday that the satellite television provider known as Sky appears to be ready to take on BT for a share of the growing broadband market.

BSkyB recently acquired the broadband access company Easynet and is expected to begin offering service late this year, and some analysts are certain that Sky will enter the market with a splash in the form of cut-rate, if not free, Internet access for its Satellite television subscribers.

"It has just the sort of wow factor that he loves," one source said in reference to Rupert Murdoch, whose News Corp. owns 39 percent of Sky. "Murdoch really wants to take on a big gorilla like BT and win."

In addition, the offer would serve as an incentive to Sky's basic-service subscribers to upgrade their packages.

Sky had no comment on the report, but the newspaper said the company has vowed to extend Easynet service to half of Britain's households by the end of the year.

Copyright 2006 by United Press International

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