BT Vision to offer Sky Sports 1 and 2

BT has outlined plans to invest around £200m in its BT Vision digital television service, including offering Sky Sports 1 and 2 to consumers.

The company, which today posted a pre-tax profit of £1bn for the year to March 31, intends to launch an enhanced platform for BT Vision offering more high definition content, video on-demand functionality, premium channels and "interactive services".

The new platform would most likely be based on the technology being developed for IPTV joint venture Project Canvas, of which BT is a member.

BT has also reached a deal with transmission firm Arqiva to secure digital terrestrial television capacity for offering Sky Sports 1 and 2 to its subscribers.

The move follows Sky's interim deal to sell its premium sport channels at reduced prices to BT, Virgin Media and Top Up TV.

BT Vision is now expected to offer Sky Sports 1 and 2 in time for the start of the new Premier League season in August, with prices possibly as low as £20 per month for a bundle of both channels.

"Offering Sky Sports 1 and 2 to our customers is clearly an important milestone for both BT and, of course, our customers," said BT Vision chief executive Marc Watson.

"To enable delivery of these channels we have chosen to work with Arqiva for DTT capacity. They have a proven track record and will allow us to ensure a great service for our customers."

Discussing BT's priorities going forward, the firm's chief executive Ian Livingstone said: "We have made good progress this year and have now set clear objectives for the next three years. We have improved customer service, are transforming the cost base and have more than doubled free cash flow, but there is still a lot more to do.

"We are investing in the future of our business, enhancing our TV offering and building on opportunities in our Global Services business. Assuming an acceptable environment for investment, we see the potential to roll out fibre to around two-thirds of the UK by 2015. This will take our total fibre investment to £2.5bn which will be managed within our current level of capital expenditure.

"During the next three-year period we expect to improve our underlying revenue trends, and grow EBITDA and free cash flow, while investing in the business, supporting the pension fund, reducing net debt and paying progressive dividends. We are on track with our goal of creating a better business with a better future."

BT Vision, which offers linear TV channels and video on-demand content, increased its total subscriber base to 467,000 in the first three months of 2010.