1 February 2007
Following the news that BSkyB has acquired 259,000 subscribers for its high-speed internet service over the last six months, Murdoch's brand can now claim to be the UK's seventh-largest internet service provider.
With big aspirations, including obtaining 700,000 subscribers by the end of June and staving off the expected assault from Virgin Media, some telecommunications commentators are questioning whether Murdoch's brand can stay the course.
Its efforts in launching its broadband package, though successful in terms of the number of subscribers, have helped to eat into its profits, falling from £390 million last year to £356 million.
Chris Frost, Communications Expert at the price comparison and switching website uSwitch.com, said that he was concerned that customer service levels would fall by the wayside in BSkyB's conquest to join the big telecoms players.
"The recent free broadband revolution has sparked a growth in demand from consumers, but we have consistently seen companies unable to deliver adequate levels of customer service," he said.
Mr Frost did give praise however, for BSkyB's "well-orchestrated pre-registration process" and regular contact with its customers, which had helped to ensure that 90% of its new subscribers were connected within five working days.
"The great news for customers is that the bundles war is well and truly underway, which will drive prices down and value up," Mr Frost continued.
"The big question is – will Sky's pre-emptive triple play strike be enough to withstand the expected Virgin Media marketing onslaught?"
© 2008 Adfero Ltd
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