BT undercuts Sky on Sky Sports channel prices

BT is to charge customers just £16.99 a month for Sky Sports 1 and Sky Sports 2, despite BSkyB announcing last night that it is increasing the retail price for the channels.

BT Vision customers can add the channels for £16.99 on a month-by-month contract. If they only want to add either one of Sky Sports 1 or Sky Sports 2 they can do so for £11.99.

If customers sign up to a bundle of broadband and calls for 24 months, they can pay from just £6.99 for Sky Sports 1, ESPN and ‘on demand’ sport from BT Vision, or £11.99 for Sky Sports 1 and Sky Sports 2, ESPN and ‘on demand’ sport.

However,  Sky announced yesterday that it will be increasing the retail price of Sky Sports 1 and Sky Sports 2 by £3 to £19.07, meaning BT is likely to make a loss on the channels.

In March this year, Ofcom ordered Sky to cut the price it charges rivals for Sky Sports 1 and 2, giving BT the opportunity to be able to offer the channels for the first time.

This was the result of an investigation the regulator launched in March 2007 when BT, Setanta, Top Up TV and Virgin Media requested a review of the way BSkyB sells its premium content to competitors.

Gavin Patterson, chief executive of BT Retail, said: “Football fans will be cheering our new prices, which mark an end to paying for basic channels when you only want the sport.

“We expect that entry prices as low as £6.99 will welcome in a huge number of extra customers who’d love to enjoy these channels, but thought they were too expensive.

“A more competitive market will ensure that customers continue to get the best sport for the sharpest prices and this opening of the market will be in the best interests of customers.”