News Burst: Internet on the box from ONdigital

Internet access moves on to the television Wednesday as digital TV firm ONdigital announces surfing for £5 a month.

As unmetered Internet access struggles to find a viable business model, TV is beginning to steal a march on PC Net providers. ONdigital's announcement comes hot on the heels of rumours that Sky (quote: BSY) and BT (quote: BT)are on the verge of a deal that would see interactive TV services delivered via ADSL.

BT is also involved in ONdigital's new offering, which has rejected the unmetered model in favour of BT's 1p per minute off-peak service. Peak time surfing will cost 2p per minute. ONdigital's chief executive Stuart Prebble hopes to capture eyeballs from those who have failed to be captured by Internet via PC. "For the millions of people who have been left behind or excluded by the Internet revolution, ONdigital is the easiest way to get online," he says in a statement.

"Why spend hundreds of pounds on a computer when you can access the Internet on the TV that already sits in your living room?" he asks.

ONdigital's Internet service -- dubbed ONnet -- will be available from the middle of September. ONdigital has over 700,000 subscribers.

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