OK so I search on Google for "orange broadband" and this is what I get in number 2 sponsored results position:
Thinking of Orange?
Check out BT Total Broadband. The Complete Broadband Package from BT
www.bt.com
LOL, I've seen competitor ads shown on keywords before but none as cheeky as this.
BTW the ad doesn't show all the time, it may be that they were just testing it.
What I'm listening to right now: Disco Kandi - Various
Affiliate Marketing - BT Broadband
3 Responses to Cheeky BT Broadband ad on Google
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Welcome to my blog. My name is Kieron Donoghue and I am the founder of ShareMyPlaylists.com, ContentNow.co.uk and some other stuff. I have no idea why I'm blue on this photo though but I like it!
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I see it too from Aus, but had to visit google.co.uk for it to show up. Mad! I wonder what their CTR is. Could never pull this off in a lawsuit-happy community like the USA, though.
I’ve seen similar in the motor industry, though can’t remember exactly who it was.
Something like Honda bidding on a Citroen brand term with a similar creative to your example.
Citroen C5 alternative
Try the Honda
something-or-other
http://www.honda.co.uk
Might have been other brands though… can’t remember exactly.
I think its great
Love the question it will immediately prompt a user response in their head 
monk-i