BSkyB and BT Bidding For AOL in UK

Reports are being received that BSkyB and BT are both interested in bidding for AOL's UK internet operations. AOL is the third largest broadband provider in the country. About one billion is said to be the asking price, but it's thought the two media are not likely to want to stump up so much for the extra business the isp could bring them. Providing broadband services is now becoming a commodity market and fiercely competitive. Time Warner recently put its UK operations up for sale and expressions of interest are being sought from bidders

AOL's customer base is the main interest, as the new market for video broadband services is developed. BskyB intends launching its broadband service this summer after it bought Easynet for £211m. BT is already the wholesale telecommunications provider for AOL's 1.3m UK broadband customers and has a further 2.6m that subscribe to BT's own broadband brand. BT Vision broadband services are scheduled to be rolled out in the autumn.

The second largest UK broadband service supplier is NTL, though its cable TV operation.