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Sky crashes into free broadband

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Sky is the latest company to get on the convergence wagon by offering broadband internet access alongside other comms services.

Aimed at existing Sky customers the service will be "free" - if you spend enough money on other Sky services.

Punters can sign up to one of three packages - max, mid or base with download speeds of 16Mb, 8Mb and 2Mb. Monthly usage is capped at 2GB for base, 40GB for mid and unlimited for max. They can also include Sky phone package.

The base service is free except for a £40 connection fee and a £50 installation fee. The max package costs £14 a month including phone line rental. Although it claims to be unlimited the max package will be "subject to fair use policy".

A Sky-branded Netgear wireless router is included as are some McAfee security products.

No mobile play yet - BSkyB chief executive James Murdoch said he didn't see any need to marry broadcasters to network companies. He said home phone and television services were its first target. Video on demand online will be part of the offer from day one, and it'll be coming through your set-top box in 2007.

The company will invest £400m over the next three years and hopes the service will be adding to the bottom line by 2010 - excluding any pay-TV benefits.

The press releases, and a video schmooze with James Murdoch, are available here.®

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