Television

Sky launches a free broadband service for customers

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MUMBAI: UK pay TV service provider BSkyB has launched free broadband for Sky customers. The company says that the launch sets new standards in quality, ease and savings.

Unveiling its new broadband internet access service, Sky Broadband, at an event for analysts and investors the Company disclosed some information:

Operating and Financial outlook
• Pay-TV business on track to achieve 2010 targets
• Clear strategy to build a scale broadband customer base, targeting revenues from high growth opportunities in online advertising, search and content and increasing penetration of additional products
• Anticipated investment of £400 million of EBIT to be invested over the next three years
• Broadband expected to be earnings enhancing in the year to 30 June 2010 independent of any Pay-TV benefits
• Capital expenditure of approximately £250 million in first two years
• Targetting broadband ROCE of 15 per cent for the year ended 2011 including initial cost of Easynet acquisition
• Progressive dividend policy to be maintained across investment phase.

BSkyB CEO James Murdoch said, "Sky Broadband is a compelling product which rewards our 8 million customers with a quality service offering flexibility and great value. Sky is ideally equipped to enter the large and growing markets of broadband and telephony and by pushing the boundaries of the home entertainment market, we will help our customers realise the full potential from technological convergence.

"The business case is clear; we believe our investment will enhance top-line growth, be earnings enhancing from 2010 and with the benefits of scale, deliver increasingly attractive returns thereafter whilst offering substantial savings and compelling value to customers. This is a transformational new initiative for Sky.”

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