Local loop unbundling on schedule for satellite TV company

Sky has confirmed that it will launch a broadband internet service this summer, but has yet to release any firm details.

James Murdoch, chief executive at the broadcaster, told an analyst briefing that the service would debut this summer following the installation of broadband kit into 259 BT exchanges.

Sky expects to be in 379 exchanges by August, giving it 30 per cent broadband coverage in the UK market.

The company hopes to increase that figure to 70 per cent by the start of 2008, which would give it potential connections to 17.5 million homes.

Sky's entry into the broadband arena follows its purchase of EasyNet in October 2005 for £211m.

Since the announcement by Carphone Warehouse of a 'free' broadband service, industry insiders believe that Sky might offer a similar deal to its television subscribers.

Sky was tight lipped about any further details of the upcoming broadband service. "It's a case of watch this space at the moment," a spokeswoman said.