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Sky challenges BT with digital TV channel price increase

Thursday, July 1st 2010 by Cable.co.uk

Digital TV provider Sky is raising its prices in an attempt to undermine BT's new sports-based packages.

BT's decision to launch digital TV bundles featuring Sky Sports 1 and 2 has taken an extra twist, with Sky announcing plans to increase the price of the channels.

The wholesale cost for providers to take both of the sports channels from Sky is set to rise to £19.07 a month, which suggests that BT will make a loss by charging customers just £16.99 a month for access to them.

In addition, the price changes mean that Sky customers will see the cost of their subscription and the channels rise slightly, although the firm has suggested the move is being made to cover the cost of showing more top-class sport.

Mark Anderson, customer marketing director at Sky, told the BBC: "We're investing to bring customers an even better service next year.

"Sky Sports will have 25 per cent more live Premier League games, alongside outstanding events like the Ryder Cup and the Ashes."

BT Retail chief executive Gavin Patterson recently suggested that football fans would be "cheering" his company's new prices.

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