Broadband News

Sky to launch 40 Mbps fibre service for £20 a month

Sky has issued its Q2 11/12 financial results which indicate a strong performance with profit up 16% when revenue increased by just 6%. This increased profit comes on the back of a continuing growth in customers with the average customer now taking 2.6 products from Sky, compared to 2 back in 2009.

In the broadband sector the largest piece of news to emerge is the anticipated launch of Sky Fibre initially offering an up to 40 Mbps (2 Mbps upload) for £20 a month from April 2012, and the product crucially will remain unlimited. The service is based around the Openreach FTTC service, which is expected to cover 30% of the UK by April. Their standard ADSL2+ unlimited product is £10 a month, though by bundling with Sky TV its price reduces to £7.50 a month. The fibre service will carry a £50 activation fee (this covers the Openreach engineer visit) and will only be available if you have Sky TV.

The Sky LLU network is continuing expand with the plan that by June 2013 coverage will be 88% of UK households, currently Sky has some 1,907 unbundled exchanges. The firm had 3,651,000 broadband customers at the end of December 2011, a rise of some 645,000 in 12 months, and 166,000 compared to the previous quarter. Some 2,146,000 broadband customers were fully unbundled (phone and broadband running off Sky hardware in the exchange), another 1,257,000 using shared LLU (phone on BT kit, broadband on Sky hardware), the remaining 248,000 were still using the BT Wholesale broadband platform in the parts of the UK where Sky has no LLU presence.

The reach of Sky will soon extend into Wi-Fi hotspots once it launches its public Wi-Fi service powered by The Cloud, which will give customers access to some 10,000 hotspots. The Sky Go service is expanding adding more channels, and will also be coming to the Android platform, the service attracted 1.5 million unique users in December 2011, with 2.5 million customers using it since its launch.

Comments

Cracking value. This is going to spank BT Infinity.

  • Apilar
  • over 5 years ago

So adding fibre to your Sky broadband package (alongside your Sky TV package) will cost an extra £12.50 per month?

  • WWWombat
  • over 5 years ago

@WWWombat - yeap. Unlimited and unmanaged still.

Have asked a couple of questions on upstream, ie. 2 or 10. The up to 80 Mbps upgrades, and those with FTTP

  • andrew
  • thinkbroadband staff
  • over 5 years ago

No, it will cost £20.

  • Apilar
  • over 5 years ago

EDIT: You're right, £12.50. :p

  • Apilar
  • over 5 years ago

Great deal if its a 40/10 package and unmanaged like their ADSL, if its only 2Mb upstream then Meh... Interesting to see if at that price they will rollout the double speed 80/20, if so then its a very interesting proposition!

  • weesteev
  • over 5 years ago

I spoke to a Sky employee in the last week who said the biggest issue for Sky is that they are stepping back from their LLU Broadband service and reliant on BT Wholesale again.

They are worried about perception and service they can provide due to costs.

Will it "spank" Infinity like Apilar says... When it's the same product with a different coat of paint on the top it probably wont.

  • TheGuv
  • over 5 years ago

Same product as Infinity? You mean just like Sky Connect is the same product as IDNet services at the same exchange?

Infinity may share the same GEA-FTTC openreach segment, but backhaul is very different and with faster products this is even more critical.

  • andrew
  • thinkbroadband staff
  • over 5 years ago

This is great news indeed well done Sky I'm sure even more ISP's will follow now!!!! :D

  • GMAN99
  • over 5 years ago

Update: Product is 2 Mbps upload, and is just FTTC areas.

We need to wait to see what happens with the 40 to 80 changes

  • andrew
  • thinkbroadband staff
  • over 5 years ago

BT and other ISP's will be more fool to let Sky to have FTTC at £20 a month (UNLIMITED with no FUP or usage cap) and the question is will BT and ISP's complaint to Ofcom not to allow it or otherwise many customers will leave BT or ISP's to join Sky truely unlimited FTTC. I cannot see it will happen. Ofcom and BT with ISP's will bite the bullet back at Sky soon because the most expensive FTTC from BT supplier is IDNet at £119 a month (UNLIMITED FTTC) so how on earth Sky managed to get it for just £20 a month ?

  • adslmax
  • over 5 years ago

They make most of their money from their TV packages so they can probably afford to sell this at cost or less than cost.

  • GMAN99
  • over 5 years ago

Yes but the whole point's is: Customers will see the cheapest FTTC UNLIMITED in UK will be Sky, and wil ditched all UK's isp's or BT for most expensive FTTC. I cannot see it will happen! BT and ISP's will going to lose more customers sooner.

  • adslmax
  • over 5 years ago

Are they using their own kit at the exchange or just going for the reseling?

As Sky connect on ADSL is one of the worst resold BTW products out there.

This could be the fibre version of that with limited bandwidth bought and major peak time slowdowns.

  • undecidedadrian
  • over 5 years ago

Surely BT are still in the running with Infinity (unlimited), evening and weekend calls bundled for £25 per month?
I don't believe that Sky can continue to leave the service "unmanaged" for long with that bargain basement price. It could be Talk Talk all over again!!

  • ToneDeaf
  • over 5 years ago

The FTTC service will use the Sky hardware and backhaul network hence how they can manage to offer unlimited.

Or to say that another way, IT WILL NOT USE BT WHOLESALE WBC NETWORK.

Price wise not far from TalkTalk with its fibre boost.

  • andrew
  • thinkbroadband staff
  • over 5 years ago

I am chomping at the bit to get SKY LLU service - but dam blast - they haven't got to my Exchange yet. This news just wants me want it even more!

  • jroadley
  • over 5 years ago

Updated from sky: http://corporate.sky.com/skyviews?month=1&year=2012&author=b4d68a985c164a71bf5f62decda0
04d4

  • adslmax
  • over 5 years ago

adslmax, any link to validate your comments re 15 meg?

  • mikecrawford80
  • over 5 years ago

If only they would offer static IP. I'd leap on that in an instant. SkyHD+SkyFibre+SkyTelephone would be a sweet deal. But I just don't fancy pratting about with dynamicDNS for my FTP and mail server.

  • AndrueC
  • over 5 years ago

Edit. Just noticed the upload. Hmmm, prolly not then. I don't really need the download boost from 13Mb/s so unless I can get a decent upload boost there's not much point.

Memo to Sky:20Mb/s upload and static IP required please :)

  • AndrueC
  • over 5 years ago

Upload is not important at present!

  • adslmax
  • over 5 years ago

adslmax is spreading nonsense. Shame about the upload speed.

  • Apilar
  • over 5 years ago

Yeah, probably the same (A.N.Other ISP employee?) who said the same thing on the skyuser forums :)

  • lucifa42
  • over 5 years ago

Not impressed with the upload speed, for me it's THE MAJOR differentiating factor for FTTC/P.

Hopefully they will add another package with a higher uploaded speed in the near future when 80/20 becomes available.

  • aclift
  • over 5 years ago

False rumours are not tolerated.

Sky has very much pinned itself to the unlimited unmanaged label in its investor releases.

Of course if in 12 months time this proves impossible to sustain then things may change, but for now the plan is an unmanaged product.

Restricting upstream will help a lot.

  • andrew
  • thinkbroadband staff
  • over 5 years ago

It's pretty clear that this product is aimed at a particular market segment.
They're not going to complicate their lives by making additional products that can be better supported by more "niche" ISPs.

  • themanstan
  • over 5 years ago

This will have a bigger impact on Virgin than BT. Heavy surfers or spendthrifts have left BT long ago. BT remains where it was - stuck in the middle. Sky competed on price but not speed. Virgin competed on speed but not price. Now Virgin has to compete on speed, price and, with all the on demand developments like Sky Go and NetFlix, content. Virgin is frequently heavily contended and traffic management can be harsh - my experience with Sky is very different. If this does not seriously reduce Virgin's prices, margins and customer numbers I will be amazed.

  • musical_uk
  • over 5 years ago

A point nothing to do with Fibre, but in this article, is that in the last 12 months Sky have gained more broadband customers than the whole of the O2/Be broadband customer base.

Ouch - for Telefonica!

  • uniquename
  • over 5 years ago

***Posted by Apilar about 8 hours ago
Cracking value. This is going to spank BT Infinity.***

What by being a whole £5 cheaper with a slower upload and forcing you in to a £25 TV package?

  • CudworthExchange
  • over 5 years ago

I'll be honest - I've been waiting for Sky fibre for a while so was excited. But then a DS user posted this - http://forums.digitalspy.co.uk/showpost.php?p=56292819&postcount=49 - comparison.... it does make you think twice. Upload is important to those who may want remote access or remote data back up so unlike adslmax I do think there is a cause to look at this.

  • ccsnet
  • over 5 years ago

oo this is good news the question now is when FTTC becomes avalibly this march do i get it on my talktalk line or wait the extra month and get it on my sky line (think ill wait and go with sky same upload either way but i like sky better lol)

  • acpsd775
  • over 5 years ago

Although I registered an interest I'll probably be stuck with 800KBs-1.7MBs (sometimes- mostly less than 1.5MBs and often less than 1MBs) for a very long time. Although less than 10 miles from a city we are on what is technically a rural exchange but only being less than 10 miles from a city and only just outside a town we are not what people think of when they think of rural. Also our village is bigger than people think of for a village and if developers get their way it'll be joined on to the town. Schemes to help rural areas are not likely to come here but neither is fibre. I'm already LLU.

  • AspieMum
  • over 5 years ago

dissapointing on the 2meg upload, looks like infinity has next to no good competition.

  • chrysalis
  • over 5 years ago

Looks interesting but the restriction to 2Mbit upload is curious. Buyers should think through why that is there.

  • orly2
  • over 5 years ago

Restricted upstream helps balance heavy download traffic on the network. Since torrenters (who are unmanaged remember) are not able to swamp the network so effectively.

  • andrew
  • thinkbroadband staff
  • over 5 years ago

Great value but as always theres a catch, and from what i have read so far, that is, you must be paying line rental to sky. For individuals like myself who pay annually (BT line rental saver) must wait for the contract expiration date. I think its best to pay BT line rental given that they are always quickest to respond if there are any line issues/faults being as though openreach is a BT business group.

  • kunjar
  • over 5 years ago

Perhaps i can still have Sky fibre as i am a Sky TV customer and have the Sky Talk Unlimited (CPS) on my BT line. I certainly hope Sky offer a 10mbps upload package given that it only costs them (Sky) an extra £1, as stated on the openreach FTTC product sheet, plus an additional £2-3 for Sky to make profit of course. It is still the best offer yet, considering that other ISPs offer 30, 40, 50gb etc. FTTC allowance for £30/pm. Complete rip off.

  • kunjar
  • over 5 years ago

This announcement has everything to do with that tantalising ethernet socket on the back of the Sky box.
Imagine what services Sky could offer if they wished!
Yes there is the current use of the socket for Anytime but iPlayer etc must come before long and higher bandwidths improve matters, although at my London pad I get iPlayer just fine with only 1 meg download.

  • rickw
  • over 5 years ago

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