BSkyB is suing EDS for £709m over its alleged failure to provide a customer service system for the media giant's call centres.

BSkyB is claiming damages for breach of contract, negligent misrepresentation and deceit.

BSkyB has accused EDS of making a "deliberate, cynical and dishonest" pitch for the £48m contact, signed in 2000. The broadcaster subsequently terminated the agreement in March 2002 and claims to have spent £170m on a replacement customer relationship management system.

Opening the prosecution case yesterday, Mark Howard QC described EDS' performance as "woeful" and alleged that the company had "put forward a sales pitch knowing it was being done in a misleading way."

EDS' defence will be clarified next week when the firm's counsel is expected to make their opening remarks.

A spokesman said: "EDS will refute BSkyB's allegations during the course of the trial and we will vigorously defend our position."

The trial is expected to last longer than six months.