Sky in talks to sell Liberty Fibre service
Sky might be about to throw its might behind Liberty Fibre Ltd, which is a week old company created by Liberty Global as a vehicle to roll-out full fibre outside the existing Virgin Media cable footprint. The Financial Times has revealed that while talks are only just beginnging Sky is considering joining Virgin Media on the Liberty Fibre FTTP network and may also be a wholesale customer for the existing cable network too.
The shifting dynamics around full fibre are not just about building more and building it faster but who will end up as the dominant market force once the excitement of building the network ends and investors want to start seeing a return on their investment.
The immediate reaction for many will be that this is a massive blow to the Openreach plans but Openreach and the BT Group have two decades of existing with a lot of broadband competition from Virgin Media and its previous incarnations as NTL and Telewest. The likelihood is that Openreach and its own FTTP roll-out would not suffer, in fact if there was another FTTP operator with a similar sized network it might help Openreach as they should be given more freedom from Ofcom. With the might of Liberty Global and Comcast it may the growing number of smaller full fibre operators who will suffer, co-existing against Openreach for these operators is easier as 'we are not BT' can be enticing marketing message at times.
The question now is when we will see the first Liberty Fibre areas rolled out.