BT rumoured to be in cable-busting talks

Media reports suggest that telecoms giant BT is engaged in discussions with BSkyB and ONdigital about offering combined telephone and television service packages to customers. Such a deal would be seen as direct competition to the "bundled" deals offered by ntl and Telewest, which include telephone, television and internet access.

There have previously been reports of "cable busting" deals being discussed between the cable rivals, although nothing tangible has yet come to fruition. It is understood that BT has once again adopted a strategy to stave off competition from cable operators, and is discussing the possibility of offering special tariffs to Sky and ONdigital customers under a marketing pact between BT and the companies.

It should be stressed however that these reports are unconfirmed at this stage. Indeed, a BT spokesman, speaking to Broadcast, dismissed the reports as pure speculation:

"All reports yesterday on BT's tariff agreements with digital television operators amount to nothing more than rumour and speculation. We have nothing to add at this stage."