A high-cost loss-leader.
Without seeing any figures, I can't see rental and call charge
increases paying that cost without the bottom line falling. The new customer numbers to be gained are also debateable. I expect Sky churn is quite low, which in mass market terms leaves TalkTalk as the main poaching ground.
BT bean-counters will no doubt have some impressive spreadsheets driving it all.
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"Where talent is a dwarf, self-esteem is a giant." - Jean-Antoine Petit-Senn.
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Allergy information: This post was manufactured in an environment where nuts are present. It may include traces of understatement, litotes and humour.