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Sky adds 100,000 broadband customers in last quarter
Thursday 01 November 2012 11:03:35 by Andrew Ferguson

Sky is continuing its growth in the retail broadband arena, and while the 102,000 new broadband subscribers is down on the 138,000 added in the previous quarter it is still a healthy growth.

The question of whether Sky is the third biggest UK broadband provider will need to wait for the equivalent quarterly results from TalkTalk, but as TalkTalk has actually shed a small number of customers the last couple of quarters, Sky can risk putting the champagne in the fridge.

The Sky broadband service is centered arounds its LLU products, which having gone live in the 2000th exchange in August is now available on 2,036 exchanges. The LLU network accounts for 95% of customers with only 221,000 using the more expensive and slower Sky Connect product. The shift from a shared LLU platform to a full LLU platform (where both telephone and broadband are connected to Sky hardware) continues, with all new activations on the full LLU system. This push for LLU is evident in that the proportion of full LLU lines is 71% versus 43% two years ago.

There is no breakdown of which broadband products customers are taking or how many fibre customers Sky has. What is clear is that the bundle policy is paying dividends as the number taking a triple play service has increased by five percentage points in the last year to 33%, and the ARPU is now £550.

In theory the rise of low cost film services like Netflix and Lovefilm Instant could decimate the subscription TV service that is the core of Sky, but that arm is still growing in numbers, and Sky with its launch of NOW TV and enhancements to its On-Demand service including Sky+HD boxes with larger storage capacities suggest the battle will not be an easy one for competitors. Sky TV is in some 10,654,000 homes, so with attractive bundles the provider still has many years of potential growth ahead, for example if its free Lite broadband service with a 2GB monthly usage cap were to jump to 10GB of inclusive data, this could be extremely disruptive in the budget end of the market.

Comments

Posted by Dave2150 about 1 year ago
Worth noting that there are many sky customers who have been with them for many years, who are on the old package of free broadband, with no cap.

The 2gb monthly cap is only for new customers.

Name me one other ISP that has thousands of customers on truly unlimited broadband for free? No wonder sky has so many customers!
Posted by ukhardy071 about 1 year ago
If I remember correctly the legacy free, unlimited was only 2Mbps download speed though?
It always said 2gb cap however wasn't actually enforced. They starting enforcing the cap when they removed the mid package at £5 a month. & They also moved the free broadband upto 20 Mbps.

& It's not really free as it's subsidised by the line renatal, calls and TV package.
Posted by otester about 1 year ago
Sky's awesome.

Just wonder whether they do BTW FTTC 80Mbps or just 40Mbps?
Posted by MysticEddy about 1 year ago
@otester, they do offer Sky Fibre Pro up to 80Mb for £30pm.
Posted by otester about 1 year ago
@MysticEddy

Aha, just trawled through their website again and they have a little link for it, seems you have to call to get it.
Posted by Dave2150 about 1 year ago
@ Ukhardy, that's false information. Your speaking to someone actually ON the service for many years, it is not limited at all.

Please stop spreading false information, when you have no idea.
Posted by doowles about 1 year ago
They really do offer a good deal if you take the bundle. Considering i'm paying BT 15 quid a month, BE 22 quid a month, and 10 quid a month for tv it actually makes a lot of sense.
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