Sky has made the news today by announcing that it
will be offering broadband packages for their subscribers. They have a very compelling
package, starting with free broadband (and free wireless router) at 2Mb speed ranging
up to a whopping uncapped 16Mb connection for ?10 a month. According to their press
release, their network currently covers 28% but they’re aiming to target 70% of all
UK households by the end of 2007. That’s the major caveat at this point in time; you
have to be within the reach of their network for them to offer you this service.
The market has been expecting this release, ever since Sky announced their acquisition
of EasyNet for ?211 million last last year.
In a previous press release, Sky had described their acquisition as “an established
presence in UK broadband; a leading position in Local Loop Unbundling in the UK with
232 local exchanges unbundled; managerial and technical expertise to expand this local
infrastructure through the unbundling of additional exchanges; ownership of key parts
of a national network, giving it control over the quality and availability of services
to customers and the ability to offer differentiated and innovative products; an attractive
source of new revenues and new customers for BSkyB as a result of involvement in a
fast growing segment of the UK communications sector. The number of UK broadband connections
increased from approximately 4.4 million to 8.1 million, an increase of 86 percent.,
in the twelve months to 30 June 2005, and is projected to continue to grow further
in the future; the opportunity to build on its nearly 8 million DTH subscriber relationships.”
On a local note, it’s unlikely that Sky will be extending it’s network to the Isle
of Man, as Manx Telecom (the local
telecom provider) has a very firm grasp of the local infrastructure. As far as I’m
aware (I could be wrong of course), MT have no intention of allowing LLU (Local
Link Unbundling – where ISP’s can deploy their own technology within a telecom
provider’s exchanges), so we’re stuck with paying ?30 a month for a 2Mb connection
for the foreseeable future.