BT in fresh talks with BSkyB

BT has entered into fresh talks with BSkyB about stepping up the strategic alliance between the two companies.

BT already offers its customers a subsidised Sky Digital subscription in an effort to maintain its landline subscriber base in the face of competition from cable firms NTL and Telewest who can offer telephone line and digital television joint packages.

It is thought the latest round of talks between the two companies is aimed at developing a joint billing system so users receive just one bill for the telephone and internet use as well as digital television.

In related news, loss-making ITV Digital, formerly ONDigital, is being linked with a number of rescue options as parents Carlton and Granada prepare to announce plans for the ailing television service later this week.

The options being put forward include ITV Digital subscribers being sold on to rival digital providers NTL, Sky and Telewest, which investment bank Investec says will save Carlton and Granada around £750m, according to the Financial Times.