Sky to enter Britain's mobile market with Telefonica deal

Hang Lung

29/01/2015 11:30

LONDON, Jan 29 (Reuters) - Britain's dominant pay-TV group 
Sky  SKY.L  plans to launch a mobile service from 2016 through a 
deal with O2 owner Telefonica  TEF.MC , ramping up the pressure 
on the country's already crowded communications market.  
    Sky, which raced to become the country's second largest 
provider of home broadband after entering the market just seven 
years ago, will offer voice and data services to all customers 
through a wholesale partnership with Telefonica's O2 network.  
    Britain's communications market has seen a wave of deals in 
recent months as companies seek to combine to be able to offer a 
package of services including fixed and mobile calls, broadband 
and entertainment.  
    The country's biggest fixed-line provider BT  BT.L  is in 
exclusive negotiations to buy the biggest mobile provider EE and 
Telefonica has just agreed to sell O2 UK to Hutchison Whampoa 
 0013.HK . 
    Hutchison already operates the Three Mobile network in 
Britain and combining it with the second-ranked O2 will make it 
the top mobile operator in the country. Telefonica UK is already 
the network provider to a number of other brands, such as Tesco 
Mobile. 
    No financial details were given on the terms of the 
agreement.    
 
 (Reporting by Kate Holton; editing by Neil Maidment) 
 ((kate.holton@thomsonreuters.com; 0044 207 542 8560; Reuters 
Messaging: kate.holton.thomsonreuters.com@reuters.net)) 
 
Keywords: SKY TELEFONICA/PARTNERSHIP