Sky considers new broadband service

BSkyB could soon launch a standalone high-speed PC broadband service after enjoying major success with its Internet offering last year.

Up until July, the broadcaster had signed 716,000 customers since launch in 2006, while claiming to be the fastest growing Internet provider in Britain.

"We're now examining options to broaden access to the benefits and value that we can provide, however no plans are confirmed at this time," a BSkyB spokesman said.

The firm launched a broadband service last year, offering pay-tv subscribers a bundled package in a bid to keep its existing customers happy.

But while there is far more competition in the standalone broadband market, analysts at UBS said such a service would make strategic sense for the firm.

"The most important issue will be pricing and the avoidance of any confusion between its pay and non-pay-TV broadband offerings," UBS said in a note to clients.