Sky set to announce it will give away superfast broadband for FREE as price war with BT intensifies

By Peter Campbell for the Daily Mail

Published: 16:01 EST, 9 July 2015 | Updated: 05:03 EST, 10 July 2015

A price war over home internet will escalate on Friday when Sky announces it is to give away superfast broadband for free.

The pay-TV giant is set to unveil its most audacious offer yet in a bid to poach households from arch-rival BT.

Competition between the two providers intensified when BT began offering its sports channels to broadband customers free. 

War: A price war over home internet will escalate on Friday when Sky announces it is to give away superfast broadband for free

War: A price war over home internet will escalate on Friday when Sky announces it is to give away superfast broadband for free

Their tussle has escalated into a full-blown war of words, with each called for the other to be investigated for market abuse.

On Thursday, BT claimed that Sky charges its customers £500million too much for their TV and called on regulator Ofcom to investigate.

Sky has previously called on Ofcom to break up BT, saying it has a dominant position as the owner of the national network of cables.

BT leases space on the network to other companies, and says its Openreach division is run independently from the rest of BT.

Sky’s latest assault on BT will be unveiled on Friday, it is understood.

The company will offer its basic fibre-optic broadband package, which normally costs £120 for 12 months, for free.

Consumers will pay line rental, currently £16.40 a month, and £6.95 for a router. 

BT’s most basic Infinity package costs £16 a month, plus line rental.

The move is designed to convince BT customers to switch to Sky, which is home to hit show Game of Thrones.

Sky – up 9p at 1044p – has 5m broadband customers but does not specify how many currently use fibre.

Battle: Sky has previously called on Ofcom to break up BT, saying it has a dominant position as the owner of the national network of cables

Battle: Sky has previously called on Ofcom to break up BT, saying it has a dominant position as the owner of the national network of cables

BT – up 10.1p at 450.4p – shook Sky last month by offering free European football channels for anyone who pays for its TV.

The company won the rights to show Champions League football for £897million, starting this autumn.

It has launched a specific European TV channel, which will be free to BT TV customers but £5 for everyone else.

Sky yesterday rebutted BT’s claims that it overcharges.

A spokesman said: ‘The reality is that, in a competitive market, customers are choosing Sky in greater numbers.’

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