Sky has announced a pretty amazing broadband offer that will be available from the 12th June, two years free unlimited broadband, twice as long as the existing 12 months offer that is available to Sky TV customers switching phone and broadband to the satellite TV and broadband provider.
The new 24 month long offer will only be available to Sky TV subscribers who take a Sky Sports package and is part of the promotion for the Sky Sports 5 channel that will be dedicated to European football (over 600 matches) featuring European Qualifiers for UEFA EURO 2016, UEFA Champions League, La Liga, Coppa Italia and Copa del Rey for Sky Sports viewers, plus a host of other European football programming including Revista De La Liga and Champions League.
Registration for the new channel and full details of the broadband offer will be available from 12th June with the channel starting transmission on 12th August.
Moving voice line rental to Sky will be a pre-requisite for the offer, and this is currently £15.40 per month, the monthly saving being £7.50 per month. For those who want faster speeds, there is also an offer on the up to 38 Mbps fibre based broadband service, with one year at £10/month rather than the standard £20/month.
While we know many will dismiss this offer, the offer will be attractive to a lot of people and reflects the level of competition in the TV/broadband/sports bundle arena currently.
Looking into the future, this offer may impact on the CityFibre Sky/TalkTalk FTTH roll-out in York, since it will be difficult to undercut a free unlimited usage broadband service unless it is only available in areas with speeds under about 3 Mbps. Maybe the Sky strategy in York will be to also offer cheaper voice services and full IP delivery of TV channels, i.e. the overall bundle will still be cheaper than the old satellite/copper products. Looking at the retail market if Sky can do a FTTH product with the basic Sky channels, telephone line rental and unlimited broadband for a retail price of £20 then take-up will be high, this package with no offers over old fashioned copper would be ~£44/month, but offers invariably mean the savvy shopper can get it all for around £25 - £30.