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BSkyB initiates broadband service; aims to address one of satellite TV’s traditional disadvantages
BSkyB has launched Sky Broadband, a four-tiered broadband Internet access service intended to complement its core offering of direct broadcast satellite (DBS) TV service currently taken in more than eight million UK homes. Pricing, the operator claims, is significantly lower than competing offers from Orange, BT, NTL and others.The Base (free) tier offers speeds up to 2Mbps and 2Gb usage per month. The top offering, called Connect, provides up to 8Mbps download speed and 40Gb monthly usage for £17 (EUR25) per month. All four tiers offer unlimited UK land-line telephone calls for £5 (EUR7.5) a month, free McAfee data security and free wireless routers. A satellite TV subscription is required for all, as is a minimum subscription period of 12 months. Parent company News Corporation operates DBS services in the British Isles, Europe, Asia, Japan, Australia, New Zealand and the Americas. In 2003, News Corporation acquired DIRECTV, one of the two leading DBS providers in the United States, from General Motors. Sky says the service will account for around £250 million (EUR371m) of capital expenditure in its first two years, but says the broadband service is expected to be earnings-enhancing in the year up to June 2010, independent of any related Pay TV benefits. BSkyB chief executive James Murdoch calls Sky Broadband “a transformational new initiative for Sky”, adding that the company would push the boundaries of the home entertainment market and “help our customers realise the full potential from technological convergence.” It will enhance top-line growth, he told investors. Report by Steve Hawley |
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