Vodafone and Sky in 'high-level talks' to counter BT's dominance in the UK

BT has recently cemented its position as the number one broadband provider, leaving rivals worried about their future

James Vincent
Monday 20 January 2014 14:28 GMT
Comments
(Getty Images)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Vodafone and BSkyB are reportedly holding “high-level talks” in order to discuss methods of challenging BT’s dominance in the UK broadband market.

Citing “senior sources”, The Sunday Times reports that the mobile phone giant and satellite broadcasters are discussing a variety of deals involving Sky’s movie and sports channels as well as a possible but “unlikely” collaboration on a high-speed broadband service.

The former national operator has recently cemented its position as the country’s top broadband supplier after substantial new investments.

The BT group has spent more than £3 billion on a new high-speed fibre-optic network available to 90 per cent of UK homes, whilst also launching its first TV channel, BT Sport, to compete with Sky Sports.

After BT spent £900 million on the rights to broadcast Champions League football, BSkyB saw their share price drop dramatically, knocking £1.5bn off the company’s value.

The world’s oldest telecom’s company also parted ways with Vodafone last year after a deal to provide BT's corporate mobile services using the operator’s network expired.

BT has since replaced this deal with a multi-year agreement with EE, a joint venture between France Telecom and Deutsche Telekom that operates the Orange and T-Mobile brands in the UK.

With this new partnership BT could offer possibly offer a “quad play” package in the future that bundles together mobile, broadband, TV and home phone contracts.

These deals have proved popular in many European markets but have not yet arrived on UK shores. With BT expanding its services and a possible Vodafone and BSkyB collaboration in the works, consumers could soon be offered a choice.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in