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| Free
Sky Digiboxes And Discount Internet
Access Services |
Question:
On BBC 1 Ceefax page 591, there is
an article on the free Digiboxes and
it also says that Sky will be offering
cheap Internet access (as well as
cheaper phone calls through a deal
with BT). I thought that Sky weren't
going to offer any sort of Internet
access? Does anyone have any more
info on this subject?
Answer:
Mark Booth, Chief Executive of BSkyB,
said:
``This is a very exciting day for
Sky. Our new consumer proposition
will transform the Company and the
entire industry. It gives customers
free access to digital television,
a free ISP and massively discounted
telephony. It removes all the barriers
to entry for customers. It will allow
us to capitalize on the fastest launch
of digital anywhere in the world.
We believe we will grow even faster
and deliver superb long term results
for our shareholders.''
There will be a meeting for analysts
and investors at 10:30 AM today at
the Merchant Centre, New Street Square,
London, EC4, followed by a telephone
conference call at 3:30 PM London
time (10:30 AM New York time)
There will also be a press conference
for print and broadcast media at the
Merchant Centre at 12:00 PM today.
BUSINESS REVIEW
NEW SKY
SkyDigital has been extremely well
received by our customers. Many of
the positive features from the first
few months' experience have continued.
The pay to basic ratio has remained
strong, increasing three points during
the period to 327%, churn has remained
negligible and 97% of subscribers
continue to take the Sky family basic
package. The customer satisfaction
and value for money ratings for the
product and the key features remain
at similar levels. With box sales
of 551,000 by May 3, the Company remains
on target to reach 1 million digital
customers by October.
BSkyB is determined to be the leading
provider of entertainment and information
to the home. In pursuit of these ambitions
the Company is seeking to build on
the momentum of SkyDigital's successful
launch. Research shows that the price
of the hardware is the last major
hurdle for subscribers. From June
1, with our free box offer, that hurdle
will be removed. The Company has committed
to providing each of our existing
analogue customers with a free set-top
box until analogue transition is completed,
and will provide free boxes to new
digital customers until further notice.
The Company will charge SkyDigital
customers (pound)40 for standard installation,
with no connection fee.
On June 1, the Company will be launching
a free ISP - skynow. This will be
free to both customers and non-customers.
Complementary to this and a significant
enhancement of the consumer offering,
the Company will provide all SkyDigital
subscribers with the opportunity to
receive 40% off their standard rate
calls using their existing British
Telecom line. This will be available
from July 1 and will apply to all
standard calls including calls to
skynow.
This new strategy will offer consumers
a cheap entry point to digital television,
the widest choice of content, a cost
effective internet experience and
40% off all standard rate BT calls.
We think it is a compelling consumer
proposition."
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