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James Murdoch in war of words with BT
Friday 15 September 2006 10:11:00 by Andrew Ferguson

The Guardian has some interesting comments on what James Murdoch who is the chief executive at BSkyB has said recently about its new rivals in the TV market place.

Mr Murdoch warns BT that it will end up "in a scary place" if it tries to compete by undercutting Sky's pay TV service. The comments were made at the Royal Television Society's London conference.

It is clear that the next couple of years are going to see an onslaught of marketing, already the distinction between free and paid for broadband is difficult to distinguish, and may be partially behind the recent spate of smaller providers closing. As for BT undercutting Sky's services, it appears most content is to be delivered via FreeView and nothing has been released to the public domain on the pricing of the video on demand content.

The biggest danger to the broadband market is that the big players enter into such heavy price competition that any slack to allow for network investment will disappear, and the UK will remain on exchange based ADSL & ADSL2+ for the next five to ten years.


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