Satellites

BSkyB set to buy Easynet

MUMBAI: UK satellite operator BSkyB is close to buying high-speed internet provider Easynet, media reports indicate. The telcom firm has invested heavily in providing broadband services to rival British Telecom.

Buying Easynet would be a way for BSkyB to offer triple-play services into the UK market, putting it in competition with the cable and telecom companies. BSkyB wants to acquire a broadband telco and is prepared to invest in Local Loop Unbundling (LLU) in a bid to provide phone and broadband services to its direct to end users.

BSkyB is looking to invest in Easynet to bolster the ways in which consumers can access its content. It plans to raise about ?1bn with a bond issue, ploughing some of the proceeds into acquisitions.

The acquisition of Easynet would allow BSkyB to offer broadband, video-on-demand and telephony services, allowing it to compete more directly with cable firms NTL and Telewest, as well as BT.

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