Sky Broadband UK Poised to Slash Prices as it Takes on FREE BT Sport

Sky Broadband (BSkyB) is reportedly ready to slash the price of its internet, phone and TV bundles as part of an effort to counter the launch of BT’s Sport service (here), which effectively bundled free access to live weekly matches from the Barclays Premier League (Football) and Rugby alongside its broadband products.

According to the Sunday Telegraph, Sky will announce its move early this week and just ahead of the planned 1st August 2013 launch for BTSport. So far Sky has declined to comment on the news, except to remind people that it plans to show three times as many Premier League games as BTSport next season.

Peter Oliver, BT Retails Commercial Director, said:

“We think Sky customers are grossly overcharged and welcome any cuts they make to their package. Many sports fans have broadband through us and their TV through Sky. Our channels will be free for those households, so we’d be happy seeing their monthly bills reduced by Sky.”

At present new Sky customers who bundle their unlimited unbundled broadband service with Sky TV pay just £7.50 a month for broadband and £21.50 for the entry-level Sky Entertainment TV package (includes free weekend calls, connection, router and more). A free Sky Broadband service can also be taken but this only comes with a meagre 2GB usage allowance. On top of that line rental must also be taken from £9.95 a month.

Traditionally Sky’s products and prices have arguably been more designed to counter offers from Virgin Media’s triple-play bundles. But as BT and TalkTalk move more aggressively into the TV space then its position will need to adapt. Sadly we do not yet know what their new offers will look like but the answer should come soon.

Meanwhile cable operator Virgin Media has already ruled out engaging in a similar price war, which is at least partly because the Liberty Global acquisition (this just completed) will be keeping them busy, plus they already have good TV content deals with Sky. But Virgin has expressed an interest in being able to offer BT’s new sport content too.