British regulator Ofcom has told BT it will be allowed to sell bundles of phone, broadband and TV services.
As the incumbent, BT has been prohibited from offering bundles since its privatization in the 1990s. Even now, it won't be able to market them as a single-priced item, in the interests of transparency.
BT Vision is its fledgling TV service, which was launched two years ago and has 398,000 viewers: Sky has 9.2 million.
As the Financial Times reports, bundling has been a very successful strategy for British Sky Broadcasting and Carphone Warehouse.
Sky has become the UK's fourth largest broadband provider, largely off the back of offering internet access and fixed line phone services, as well as TV.
Ofcom last reviewed BT's position in 2003 and yesterday the regulator said competition in the market had increased significantly.