Broadband market growth continues to fall and was below 20% for the first time in Q4 2007. Household penetration hit 56%. BSkyB dominated net additions, increasing its market share to 7.8% after 18 months of operation

This report examines whether Sky has grounds to appeal the decision by the Competition Commission requiring Sky to partly divest its ITV stake. The deadline for Sky's decision on appeal is 25th February. Bearing in mind that the CC has a good track record on fighting appeals, this report identifies two potential grounds for appeal that could prove fruitful for Sky to appeal. If Sky does appeal, and we suspect it will, the uncertainty weighing on ITV's share price will continue for some time yet

Sky's Q2 results show continuing strong growth across all parts of its multi-product business, with bumper product sales, up by almost a third year-on-year

At 30th September 2007 there were approximately 15.1 million fixed broadband subscribers in the UK and residential broadband penetration was approximately 54%. BT remains the country’s largest broadband provider supplying more than 4 million lines, while BSkyB remains the fastest growing ISP

International performance was hit by problems in Jamaica and was weak generally except for Panama and Macau

The pay-TV business is performing well, helped by the ‘halo’ effect from broadband; we view the unexpectedly sharp drop in operating profit as a temporary result of record quarterly take-up of Sky+

On 4th October Ofcom issued its consultation document on Sky’s proposals to provide a broader and more comprehensive range of programming by replacing its three free-to-air channels on Freeview with its Picnic hamper of five pay-TV services, including the Sky Sports 1 and Sky Movies SD1, as part of a flexible digital television, broadband and telephony service

BSkyB’s 17.9% shareholding in ITV is likely to lead to a substantial lessening of competition in the all-TV market, according to the provisional findings of the Competition Commission (CC) investigation announced on 2nd October 2007

Ofcom’s consultation document on Next Generation Access indicates a desire to avoid regulatory impediments to investment, not to force BT to act

The loss of Sky basic channels, strong competition and a maturing broadband market have combined to weaken Virgin Media’s top line results sufficiently to cause cash flow to decline