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July 2, 2010

BT loses out on Sky Sports offer

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by David Allen

On the very day that BT Vision announced its prices for Sky Sports One and Two, BSkyB has increased the wholesale price so that on every sale that BT Vision makes, the company will be making a loss.

The question on everyone’s lips is how can BSkyB do this following the ruling by the regulator Ofcom that forced it to lower its wholesale prices.

It all comes down to the Ofcom clause ‘Wholesale Must Offer’ (WMO).

This simply links the wholesale price to the price that BSkyB charges its own subscribers.

However, as it happens it has just been announced that this will be increased on the 1st September.

It seems that everyone apart from BSkyB loses on this deal.

Sky subscribers will be paying more and BT will be losing over £2 per month per new customer signing up for the Sky Sports bundle.

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