BT offering cut-price Sky Sports packages

The cost of watching Premier League football for armchair fans was slashed yesterday after BT announced its biggest push yet in the pay-TV market.

BT's broadband TV service BT Vision is offering Sky Sports 1 and Sky Sports 2 for 16.99 a month, dropping to 6.99 for customers who take one of the channels and have a 24-month contract for broadband and calls.

Instead of going toe-to-toe with BT in a price war, BSkyB wrongfooted the market yesterday by raising prices for sports customers from September.

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It is adding 3 a month to packages that include the main sports channels, a move which triggers higher charges for wholesale customers such as BT.

BSkyB said the move reflected increased investment in Sky Sports following the start of a new broadcast contract with the Premier League. However the increase is likely to mean that BT suffers a loss on providing its sports coverage.

The telecoms firm, which screened Premier League football from ESPN last season, is able to offer Sky Sports after communications watchdog Ofcom ruled that BSkyB must sell its premium sports content to rivals at regulated prices.

BSkyB is taking legal action over the Ofcom ruling but in the meantime it has agreed to sell the channels at a price agreed with the regulator.

The telecoms firm will begin offering the packages in time for the start of the new Premier League season on August 14.