[roadshow2006]

According to Sky News:

#Sky has announced it is to add a range of mobile services for the first time following agreement of a new partnership with #Telefónica UK

[Stig]

Now I'm confused

Quote:

Sky made its announcement just a week after it was revealed that Telefonica UK, which owns O2, was in exclusive talks about a sale to rival Three - potentially creating a new UK market leader.

If O2 had been sold to 3, how can Sky have a deal with Telefonica?

[Silent No More]

Quote:

Sky is set to add a range of mobile voice and data services to its customer offering for the first time following agreement of a new partnership with Telefónica UK.

Under the terms of the multi-year deal, Telefónica UK will give Sky wholesale access to 2G, 3G and 4G services over its popular nationwide network. Leveraging its market-leading capabilities in customer service and innovation, Sky plans to launch its first mobile telephony services to customers in 2016.

Sky’s move into the mobile sector builds on its success as the UK’s fastest-growing home communications business. Just seven years after launch, Sky has grown organically to number 2 in the home broadband market attracting more than 5 million customers with its offer of better choice and value. Sky has also established itself as the UK’s most popular triple-play provider with almost 40% of its customer base now taking all three of TV, telephony and broadband.

In addition, Sky has developed Europe’s leading mobile TV service in Sky Go. With 5.7 million registered users, Sky Go meets customers’ growing demand to watch content across multiple devices in and out of the home, offering a choice of up 70 live channels and a wide range of content On Demand, whenever and wherever customers want it.

Telefónica UK has an established track record in successful wholesale partnerships, supporting some of the UK’s leading MVNOs (mobile virtual network operators) including the number 1 player Tesco Mobile. Telefónica UK’s strong network credentials have helped its O2-branded service enjoy industry-leading customer satisfaction and are underpinned by a unique commitment to 98% 4G coverage by 2017.

Jeremy Darroch, Group Chief Executive, Sky said: “As the UK’s leading brand for home entertainment and communications, Sky has a proven ability to launch new services, at scale. We know our 11.5 million customers trust Sky to offer them the best quality and choice and have an appetite to take more from us. Through our partnership with Telefónica UK, we can build on our expertise in content, innovation and service to launch a range of exciting new services and exploit the opportunities for growth in the fast-changing mobile sector.”

Ronan Dunne, Chief Executive of Telefónica UK, said: “We’re pleased to welcome Sky to our roster of innovative, successful partnerships, through which we help partners grow their offer to customers. Sky understands the importance of a strong network and excellent customer experience and has made us a trusted partner to help deliver brilliant services. This will widen consumer choice still further and demonstrates the lively competitiveness of the UK market. We’re looking forward to working with Sky.”

For further information, please contact:

Press:
Robin Tozer
Email: robin.tozer@bskyb.com
Telephone: +44 (0) 207 032 0620

Follow us on twitter @SkyCorporate
Visit: www.sky.com/corporate

https://corporate.sky.com/media-cent...-mobile-sector

[moox]

Quote:

Originally Posted by Stig

Now I'm confused

If O2 had been sold to 3, how can Sky have a deal with Telefonica?

There's nothing to stop Telefonica being an MVNO once they offload O2, or perhaps since Telefonica are still O2's owner and may be negotiating in that capacity, it will be passed to Hutchison if/when the sale happens. It's still meant to be business as usual after all

[Silent No More]

Quote:

Originally Posted by Stig

Now I'm confused

If O2 had been sold to 3

O2 is in discussions with Hutchison Whampoa (3's parent company), not 3.

Quote:

Originally Posted by Stig

how can Sky have a deal with Telefonica?

Because they signed a deal with Telefonica and Telefonica (currently) own o2.

Simples.

[eljmayes]

It's all a bit late in my opinion unless they have designs on being the (soon to be) fourth mobile operator.

[andys corner]

an mvno then?

[Aye Up]

I wonder how this will affect Vodafone's over the top tv proposition?

I think Sky's mobile proposition will obviously be an MNVO. However Sky may have just given Telefonica a reason not to sell, I should imagine the product will be competitive.

Sky should be able to provide Telefonica with a decent level of income, I just wonder if this will now complicate Hutchison's purchase of O2 UK.

[sethpet]

Wobt have any impact on the sell off to hutch.

This will just be O2 working BAU and the deal will move to three when that transaction happens.

[bottleofbest]

Quote:

Originally Posted by eljmayes

It's all a bit late in my opinion unless they have designs on being the (soon to be) fourth mobile operator.

It's not late at all, they need to evolve to continue to be a true competitor. We have VM, BT, EE, TALKTALK all offering quad play services. Vodafone has also signalled its intentions to go quadplay soon too. If Sky don't do this, then they will fall behind. It was always going to happen.

[bottleofbest]

It will almost be like a 'live in tenant' they will rent O2's capacity and Hutchinson when buying Telefonica UK will have to honour any existing deals done.