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Could Sky be moving towards merger with a mobile operator?
Tuesday 14 January 2014 13:52:55 by Andrew Ferguson

The world of mergers and acquisitions is almost like a continuation of the gossip chain at school, but with much larger sums of money involved. It appears some analysts are suggesting that Sky could merge its European operations under a Sky Europe banner and may also see the operator move into the quad play arena via a merger with Vodafone or Telefonica.

Back in 2013 BSkyB purchased the fixed line telephony and broadband arm of O2 UK, and the increasing number of ways that Sky content can be accessed via mobile networks makes the idea of also becoming a mobile operator compelling.

BSkyB is currently the number two retail broadband operator in the UK, but is only likely to catch BT Retail within the next year if demand for Sky Fibre increases dramatically. A broadband market where BT Retail is not the dominant retailer would make for some interesting discussions at Ofcom.


Posted by otester over 3 years ago
They're going to have their work cut out for them if they merge with Voda/O2 if they want to compete with Three, but if they can bring their unlimited packages to mobile with no traffic management I'd be interested.
Posted by ScubaGirl over 3 years ago
The mobile market would get a real shake up if Sky also kept to their 12 month contract policy.

I believe that currently all the UK providers offer either an 18 month or 24 month contract for mobile phones.

As for the data allowances, I fail to understand why the mobile providers can get away with charging so much for the Internet traffic when they often use the same backhaul structure that the likes of Sky use.
Posted by dragon2611 over 3 years ago
I can't see Mobile networks offering Unlimited with no traffic shaping due to spectrum constraints on the radio side.
Posted by Michael_Chare over 3 years ago
Vodafone do 12 month contracts - at a higher price. If the brand name changed to Sky they might well start loosing customers just because of that.
Posted by MaverickJesus over 3 years ago
Why on earth would Sky 'merge' with Vodafone? Vodafone has 10x the market cap, it could swallow BSkyB whole with change to spare.
Posted by CaptainW over 3 years ago
@MaverickJesus ... If I read the article across at (above link)broker snaps, they seem to be inferring that if Fox merge with BSkyB, retaining the Sky name in the UK - a merger afterwards with o2 or Vodafone might then be on the cards
Posted by timmay over 3 years ago
I think Telefonica is dead in the water, they are probably desperate to sell anything they have to balance their books. Or that's the way it seems.
Posted by PhilCoates over 3 years ago

They offer those contracts but in reality they are often 'rolling' contracts i.e. unless you inform them of your intention to cancel at the end of the period, they just keep going.
Posted by timmay over 3 years ago
"unless you inform them of your intention to cancel at the end of the period, they just keep going."

Well durr they're not just going to cut off the service and stop your DD at the and of the 12 months. But you'd be able to cancel at any point with 30 days notice, including month 11 of the contract.
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