Sky moves into broadband territory

Sky has agreed to by ISP Easynet for £211m as the broadcaster attempts to get involved in the fast-growing broadband internet market.

Easynet mainly provides business solutions, but also owns UK Online.

Sky’s chief executive James Murdoch said: "This positions Sky very well to take a leading position in what we think is a very attractive and fast growing segment of the market.

"We've reached a point where integration into a home entertainment platform will be both viable and attractive to customers and we expect to see rapid convergence between pay-TV penetration in the marketplace and broadband penetration."

The move positions Sky to take on cable rivals NTL and Telewest.