Sky offers 'free' broadband to 'all' its TV subscribers

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DVdoctor
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Joined: Apr 1 1999

Original posting completely replaced by this one.

Bob C

Quote:
[INDENT]Sky is hoping to change for ever the UK broadband internet market. Whether it will do that with the promise of a "free" service for its satellite-TV subscribers remains to be seen.

The service offers download/upload speeds of up to 2Mb/400Kb, a free wireless ADSL router and a year's free subscription to McAfee Security Suite.

This is subject to a 2GB monthly-usage cap and subscribers will need to lash out at least £40 for an activation fee and might need to spend a further £50 if opting for "professional" rather than DIY installation.
[/INDENT]

More in this HEXUS.headline - where, I think, most of the gotchas are made very clear.

Nonetheless, in my (BC's) view, this is going to have an impact on the general downward pressure on broadband prices.

For now, though, anyone whose local exchange does have Sky's kit should, I reckon, also check out what Computer Warehouse's TalkTalk deal is offering (assuming the exchange also has TalkTalk kit) - unless, that is, all they do really want is a minimimal amount of download and a completely free (post activation fee and Sky TV subscription) service.

What's the bottom line? Well, Sky absolutely is seeing this as a way to reduce TV subscriber "churn" (how easy would it be to ditch your satellite service, broadband and phone all at the same time?) and also - I believe - laying the ground for a move away from satellite when broadband speeds are up at 20Mbps or faster, though it says nothing of the kind and such a move has some serious potential problems, I reckon, in terms of maintaining subscribers.

harlequin
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Joined: Aug 16 2000

1. only available in LLU exchanges
2. 30% of population at present
3. 70% of population by end 2007
4. sky has told it's own sales staff that free will only be for top subscribers , with more to follow when they have meetings.

the service it's based on already has busy support lines , many more customers will stretch it , and , they recently altered the t&c for the uncapped services , imposing limits 'if people download too much'
so skybroadband plus skybybroadband , both of which could be free with top subscription , may not give you enough speed and download capacity within the agreement to allow you to make full use of the service

Launches end of August , but , if anything like skyhd fiasco , they won't have enough kit to hand out to customers.

Gary MacKenzie

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DVdoctor
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Joined: Apr 1 1999

All very valid points BUT

It will definitely have an effect on pricing

Sky persues a strategy similar to Microsoft, find a parade and get out in front of it, promise more than you can deliver 'sell the sizzle instead of the steak', but establish a beach head and then keep pressing for more and more market share.

It does IMO still underline the fact that broadband is going to be strategic for content delivery, and SKY knows that they are not in the satellite business, or the hd business, or the phone business, they are in the content delivery business, and they are going to move into all the areas of infrastructure.

I still say the customer will win, even if it is simply to get a better deal on the other providers

Sharyn