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BSkyB agrees to acquire Easynet

£211m deal in the offing

In an attempt to expand into terrestrial broadband services, BSkyB has agreed to acquire Easynet, a broadband internet provider.

Under the terms of the deal, announced on Friday, the British satellite TV broadcaster will pay £211m for Easynet, one of the larger ISPs in the UK.

The arrangement will allow BSkyB to offer customers new ‘triple-play’ services that bundle telephony, high-speed internet access and TV, the company said.

BSkyB will enter the triple-play ring with other ISPs, the incumbent BT, and the newly merged cable operators NTL and Telewest.

The move reflects the exciting opportunities that now exist in offering entertainment content over high-speed connections, BSkyB said.

The number of UK broadband connections increased by 86 percent from 4.4 million to 8.1 million in the 12-month period ended June 30, according to BSkyB.

To support local customer access, Easynet has its own equipment currently installed in 232 local exchanges.


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