BSkyB Expected To Take-Over Easynet Group

Satellite giant, BSkyB is expected to announce the £150 million take-over of broadband supplier, Easynet Group, this week making a direct rival in the broadband market to BT Aol and Wanadoo, according to a report in the Sunday Telegraph.

The deal will give BSkyB the ability to offer “triple play” services to its customers, offering them pay-TV, broadband internet and telephone services.

Reports at the end of last week claimed that the satellite giant was considering a bid for telecoms operator OneTel, after the company announced its decision to raise £1 billion through a bond issue (see Sky Mulling Bid For Telecoms Firm OneTel).

Further investment of around £100-200 million is reportedly planned by the company to develop an ultra-fast internet service through local loop unbundling, potentially offering video on demand and IPTV capabilities.The broadcasters newest high definition set top boxes are also rumoured to pack an ethernet network connection, enabling them to use broadband internet connections, although it is not known whether this is intended to provide anything other than a return path for usage data.

Sky currently faces several challenges in the TV market, not least from the soon-to-be-merged ntl and Telewest (see Cable Giants Tie Up To Tackle Sky). New players are also preparing to enter the market, with BT planning an enhanced Freeview service, combining video on demand services via broadband with free-to-air terrestrial TV (see BT Plans To Revolutionise TV With Personal Channels).

BSkyB: 0207 705 3000 www.sky.com