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Last Updated: Monday, 17 July 2006, 19:25 GMT 20:25 UK
BSkyB to outline broadband plans
Broadband internet user
BSkyB's broadband is expected to be bundled with its existing services
Satellite broadcaster BSkyB is due to outline its plans for entering the fast-growing broadband marketplace.

Analysts expect the firm will offer cheap broadband as part of a bundled service together with its existing satellite TV and home phone packages.

This would follow the lines of the similar deal offered by Carphone Warehouse, whereby customers pay one bill for landline calls and broadband.

BSkyB has already warned that its broadband investment might hit profits.

Well laid plans

The firm first said in April that it was planning to enter the broadband sector.

That announcement followed its 211m purchase of existing broadband connection provider Easynet in October last year.

Analysts said the markets would be looking closely at BSkyB's planned Tuesday announcement for details of how much the broadband launch would cost.

"Whilst we expect positive targets for getting [broadband] market share there is likely to be significant costs involved in achieving these targets and consensus forecast could be downgraded following this announcement," said Barclays Stockbrokers analyst Amanda Purton.

It is not yet known whether BSkyB will be making any of its TV content available via the forthcoming broadband service.

UK connections to broadband nearly doubled to 8.1 million in the year to 30 June 2005.

BSkyB is 37%-owned by Rupert Murdoch's media empire News Corporation.

A growing number of TV stations are experimenting with allowing people to watch some of their shows via the internet.

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