Sky increases price of service amidst battle with BT

Sky has announced that its prices are to increase by as much as 10 per cent in September, a shocking decision given the fact that BT is currently doing a massive recruitment campaign to rope in existing Sky customers.

The price rise will hit all customers, regardless of whether they're new or not, and may cause customer churn to shoot up especially as ESPN and ESPN classic, two sports channels, will no longer be available on the Sky TV subscription service after 31 July.

Instead, they wil be moving over to BT which has committed to dedicated more resources sporting content including rugby, cricket and football.

O2 broadband customers who have moved to Sky, following the acquisition of Telefonica's fixed-line broadband business, may however expect to be spared from the increase as they get the services for free for a year and the line rental to be paid should remain fixed.

The increase will represent around £25 per year (for the cheapest £20.50 TV package), rising to nearly £80 for the most expensive Sky TV bundle which costs a whopping £60.50 per month.