Every home has a BT Master Socket, where your telephone line comes into your house, it's a bit different from the rest of the sockets in your home (if you have more than one!) and has a detachable lower half.
1) Find the Master Socket in your home, and unscrew the lower half of the faceplate, behind this you will find a telephone test socket. Bear in mind that when you take the faceplate off, this will disconnect all of the other sockets in your home; putting it back on reconnects them.
2) Plug a microfilter into the test socket and a telephone into this, the make sure you get a dialtone. Try ringing your mobile to make sure the line is working ok.
3) Plug your wireless router into the microfilter and see if you can get a connection to Sky broadband.
4) Try ringing out on the phone while the modem / router is plugged in.
If this works, the line is ok and you can connect to broadband, I would suggest there's a fault with the BT wiring in your home.
If it doesn't work, the microfilter is faulty.