BSkyB is studying the launch of a standalone broadband product that would not require the subscriber to also take one of the broadcaster’s pay-TV packages. It is believed the product could launch under the Picnic Broadband brand, intensifying the competition with BT, Carphone Warehouse and Virgin Media, though BSkyB is not offering any comment on the plans.
The ‘See, Speak, Surf’ promotion has been highly effective for BSkyB. Its own equipment has been installed in BT exchanges covering 70% of UK homes. As of June 30, 2007 716,000 subscribers are now connected to BSkyB’s broadband service, 81% are on the BSkyB network, and 71% have opted for a pay package.
BSkyB subscribers are offered a free 2 Mbps service with the option to trade up to speeds of 8 Mbps or 16 Mbps.