13 June 2006
BSkyB and BT are thought to be the front runners to purchase the UK's third largest interent service provider (ISP), as the companies bid to compete in a rapidly converging market.
Both companies are thought to be considering a bid for the UK arm of AOL, which has over two million customers.
Firms are increasingly looking to offer packages including home phone, broadband, mobile and digital television services and AOL could significantly help both companies deliver this.
BT is launching a television package called BT Vision in the autumn, while Sky bought up ISP Easynet for £211 million last year in order to move into the so-called "quadruple play" market.
AOL decided to put the UK branch up for sale as competition intensified in the market.
Potential suitors of the firm are due to make their interest known during a preliminary deadline today.
It is rumoured that the winning offer for the ISP will be around the £650 million mark.