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The deal will enable the company to add broadband, IP telephony and video-on-demand services to its satellite TV offerings and make it better equipped to compete with the soon-to-merge merged cable TV and broadband companies NTL and Telewest.

Easynet is the leading LLU-based broadband provider in the UK, providing services up to 8Mbps for a number of ISPs including Wanadoo

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and PlusNet. It has installed its LLU kit in 232 BT exchanges across the UK and accounts for around 90 per cent of unbundled lines.

BSkyB chief executive James Murdoch said:'Today's offer reflects the exciting opportunities that now exist to combine quality entertainment with significant high-speed connections. We see value for families in moving well beyond just another triple play to offer a new level of connected entertainment and communications services.'

He added that he expects a 'rapid convergence between pay TV and broadband' and that the acquisition will enable BSkyB to 'enter a new range of services'.

Easynet CEO David Rowe said that the offer is in the interests of Easynet's shareholders, customers and employees.

'This is a great opportunity to accelerate Easynet's local loop footprint, capture market share for next generation broadband services and support new and existing corporate and public sector customers,' he said.