Sky Broadband reach 553,000 customers
As of 29th April, Sky have reached 553,000 broadband customers, more than doubling from 259,000 at the end of January. Their third quarter results show 82% (453,000) of those customers have service via an LLU (Local Loop Unbundled) exchange. Approximately 70% of those who use an LLU product have chosen a pay-for package- an extra £5 or £10 a month on top of the existing Sky TV rental. Sky/Easynet had 928 exchanges unbundled on 31st March, which covered 61% of UK households. They are aiming for 70% coverage by the end of their Financial year (30th June).
Sky Television customers increased by 51,000 since 31st December 2006 with customer churn also up by 1.8% to 13.7%. Additional services also grew strongly, with Sky+ having a 25% penetration, and HD (high definition) subscribers amounting to 244,000.
The row between Virgin Media and Sky, with legal proceedings now under way in the High Court, are estimated to cost Sky between £15m and £20m due to wholesale and advertising revenue drops, court costs aside. Sky said they will "defend rigorously", and will file their defence in due course. Ofcom, tasked with determining if Sky's purchase of 17.9% of ITV was anti-competitive, passed the case to the DTI on Friday saying there were "public interest issues" in relation to plurality of news provision. They have deferred the case to the DTI where the Secretary of State shall make a decision by 26th of May.