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The dominance of the broadband market by BT and Virgin Media could be tested after BskyB carried out testing on "super-fast" broadband, a recent media report has indicated.

Simon Fluendy of the Mail on Sunday says that Sky is considering a method of fibre optic broadband that would involve linking the kerbside telephone boxes on the end of many streets with telephone exchanges.

The move could pave they way for a much faster broadband service without the need for extensive implementation work.

An industry figure told the newspaper: "It is a fascinating development.

"Sky is one company in the UK which you can really say is not afraid of making a big investment if it can see a distant payoff."

BskyB recently held talks in order to resolve a dispute which caused Sky to withdraw its channels from Virgin Media's cable TV platform.

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