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BSkyB Launched Sky Broadband in the UK

Informitv reports that BSkyB has launched its new broadband internet access service, Sky Broadband, which will be free to Sky subscribers. The UK satellite broadcaster aims to build a broadband customer base, targeting revenues from online advertising, search, content and increasing penetration of additional products.

Sky will offer its customers �free� basic broadband at up to 2Mbps, with premium services available at up to 8Mbps or 16Mbps at �5 and �10 per month respectively. The 16Mbps �Max� product is unlimited, subject to a fair usage policy, but the basic service has a 2GB transfer cap.

There will be a connection fee of �40 for the basic service and Sky will offer professional home installation for �50, with a free wireless router supplied by Netgear. There is no connection or installation fee for the 16Mbps Max product.

James Murdoch, the chief executive of the BSkyB, described it as a transformational new initiative for Sky that would deliver compelling value to customers. He said �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.�

James Murdoch told analysts that the company had no plans for a full IPTV service, replicating a full subscription television service through broadband. He argued that a hybrid platform is 'more efficient' and suggested that communal dishes provided a more efficient way of reaching apartment blocks. He said that the IPTV capability that they will provide will be video-on-demand (VOD).

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