[denphone]

BT wants a broadband bounce from sport, but may have scored an own goal.

http://www.guardian.co.uk/media/medi...ghts-broadband

BT and BSkyB are at loggerheads. BSkyB is refusing to allow BT to advertise its new sports channels on Sky Sports, and BT has complained to Ofcom. Now leaving aside the fact that BT can (and does) advertise on any of BSkyB's other channels, and that BSkyB and BT have both previously declined advertising from direct competitors – so there is plenty of precedent for BSkyB's position – this dispute really is a storm in a teacup. What lies behind it, however, really couldn't be more serious and the key questions are all for BT.

Since no one seriously expects anyone to pay that much just for BT's sports channels – which are still no real match and certainly no substitute for Sky's – some analysts expect BT to lose in excess of £200m a year on them.

But the problem for BT is that if BSkyB retails BT Sports as part of its offer to its customers, the telecoms company gets the money but not the customers – they belong to Sky. And no customer data means no capacity to try to sell them broadband packages. Which defeats the strategic point of spending £1bn on sports rights. Which could lead investors to wonder what else BT might have done with all that cash.