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Sky is set to announce price cuts to its broadband bundles, a national newspaper has claimed.

The Telegraph believes the firm is ready to lower the cost of broadband and TV packages, in a bid to fend off competition from BT.

When the new BT Sport channels launch in August, BT home broadband customers will have free access - allowing them to enjoy Premier League football coverage at no further charge.

Sky has dominated the UK subscription sport market for the past two decades, but the Telegraph says BT is being considered a serious rival.

An unnamed source told the news provider that the BT Sport launch will be "a market changer" for the industry, forcing Sky to act on pricing.

Sky declined to comment when questioned about its plans, but the news provider said a statement is expected early this week.

BT has commented on developments, with Peter Oliver, Commercial Director for BT Consumer, welcoming any potential price reduction at Sky.

"We think Sky customers are grossly overcharged and welcome any cuts they make to their package," he stated.

"Many sports fans have broadband through us and their TV through Sky. Our channels will be free for those households, so we’d be happy seeing their monthly bills reduced by Sky."

A reduction in the cost of TV and broadband bundles, in response to BT's free sport offer, has previously been predicted by industry analysts.

Speaking in May, Fitch Ratings said BT's decision to give away football content free to broadband subscribers "changes the pricing dynamics of the industry".

"[This] could force Sky to cut prices at a time when content costs are rising," the firm stated.

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