Sky has soft-launched its fibre broadband service by offering it to a small group of existing satellite TV customers. It says there will be a wider roll out in the coming months.

The price is aggressive, but not market shaking. Customers, who must have a pay TV account and commit to a 12 month contract pay $79 a month for an uncapped 1Gbps plan. This compares with around $100 for similar plans from the big service providers.

Sky’s deal includes a Wi-Fi 6 router. If needed, customers can get wireless network extenders for an extra $10 a month. An optional voice line costs $10 a month. Sky says it will announce other plan options soon.

In testing Sky says customers saw download speeds of around 900Mbps and could upload at 400Mbps. This is in-line with other service providers.

Sky is working with Vocus to deliver fibre broadband.

The company’s approach, bundling broadband with Pay TV services, echos the model used by companies like Trustpower and Contact Energy selling broadband to electricity customers. There is evidence that customers who buy more than one service from a single service provider are less likely to switch accounts.