To print: Click here or Select File and then Print from your browser's menu

This story was printed from silicon.com, located at http://www.silicon.com/

Story URL: http://networks.silicon.com/broadband/0,39024661,39153572,00.htm

Leader: Murdoch as Mr Broadband?
What does BSkyB spending spree mean for ISPs?

By silicon.com

Published: Friday 21 October 2005

BSkyB probably couldn't have chosen a better ISP to buy than Easynet. The company - independent until now and certainly nothing to do with Stelios' empire - is among the leaders in broadband.

That isn't in terms of plain numbers. It has always served the business world well and was among the earliest competitors to BT to make local loop unbundling (LLU) work - back when most others were complaining about the conditions for LLU, in fact.

Yet the acquisition raises lots of questions. Will smaller ISPs that rely on Easynet's LLUStream wholesale service suffer? Will BSkyB be able to compete with those piping entertainment down fat pipes - the likes of BT and the cable companies? What does that say about its successful satellite platform?

Let's return to the penultimate question. Cablecos NTL and Telewest recently announced their long-expected marriage but even now there is speculation someone else might come in, making them part of an even larger group.

If that happens, think nothing of many other ISPs getting together.

Many see BSkyB's move as an attempt to counter the cablecos' triple-play offering - telephone, TV and broadband. That's spot on.

But the relationship between BSkyB and BT - which ensures BSkyB users (and there are quite a few) have to own a BT line - is now in doubt. If BT is on the verge of doing on-demand movies and BSkyB has another networks partner, can we expect the BSkyB-BT love-in to continue?

But who has most to lose? Can Easynet simply replace BT as the way Sky customers get to send info back to the broadcaster (all that red button pushing has to travel over something).

We think not.

Does BT want several million BSkyB customers locked in to a BT line to be unlocked?

Doubt it.

This is an interesting move by BSkyB. Let's not lose sight of more competition across telephony, TV and broadband being a good thing.

But it is uncertain who will come out the better, BT or Murdoch's men.