BSkyB Bond Issue Raises Broadband Speculation

14 October 2005

UK satellite television giant BSkyB is reportedly about to muscle its way into the broadband telephony market.

Rupert Murdoch, whose News Corporation empire controls Sky, is said to be ready to spend up to £1 billion ($1.75bn; £1.45bn) to challenge the supremacy of UK telecom titan BT by offering a triple-play package of TV, internet and telephony.

Funding for the venture would be generated by the new bond issue unexpectedly announced by Sky earlier this week.

The company is believed ready to spend up to £200 million to instal its own equipment in local telephone exchanges - a process known as local loop unbundling. This allows Sky (or any other alternative supplier) to take control of BT lines into the home.

But Sky is playing it cool, insisting it will use its new funds to rebalance its debt portfolio and for "general corporate purposes". It is strictly "no comment" on "specific pieces of speculation".

Such as elbowing into the telecoms market.

Data sourced from; additional content by WARC staff