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"WHY ON EARTH DO SKY ONLY SUPPLY G ROUTERS"

Because they are free, which means Sky have them made at the cheapest possible cost to them. I daresay they can supply better routers to those customers who are prepared to pay for one.

In any event, an 'N' router will only be of benefit to you if Sky's equipment at their end is also 'N' capable. If you want to proceed with using your non-sky router read this:
Sky User - Username & Password from a Sky DG934G Router
 
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