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BSkyB signs up 74,000 broadband customers, extends mobile TV to Orange

Fri, 11/03/2006 - 5:44am

Copyright 2006 World Markets Research Limited
All Rights Reserved
Global Insight
November 3, 2006
By Emeka Obiodu
From Lexis Nexis

Satellite pay-TV provider BSkyB has posted an 11% rise in revenue for the quarter ending in September 2006. Revenues rose to £1.1 billion (US$2.04 billion) thanks to strong growth in its traditional pay-TV market.

Three months after launching its broadband offer in July 2006, BSkyB said it had connected 74,000 broadband customers by the end of October, and was recording over 20,000 orders every week.

The company said it has unbundled 540 local exchanges with 25 exchanges now being unbundled every week. Total customers for its £5-per-month Sky Talk rose by 49,000 to 204,000. Meanwhile, BSkyB said it was extending its Sky Mobile TV service to Orange and 3. The mobile TV service had been exclusively launched with Vodafone last November.

Significance: Although 74,000 broadband customers in three months is a welcome development for BSkyB, the numbers still fall short of Carphone Warehouse's 421,000 new customers in 5 months or even BT's 158,000 in the 3 months to June 2006. Given that BSkyB's foray into the broadband market remains at best a defensive strategy aimed at deterring its pay-TV customers from switching to rival providers, the company's broadband numbers are hardly likely to rival Carphone Warehouse's (see United Kingdom: 19 July 2006:).

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