Sky reaches agreement with Telefonica UK to launch mobile service
Date: Thursday 29 Jan 2015
Telecom giant Sky has reached a multi-year deal with mobile operator Telefonica UK, better known in the UK as O2, to add mobile voice and data services to its portfolio.
Under the agreement, Sky will have access to 2G, 3G and 4G services over Telefonica UK's nationwide network and the FTSE 100 group added it planned to launch its first mobile telephone services to customers in 2016.
"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," said Sky's chief executive Jeremy Darroch.
Ronan Dunne, chief executive of Telefónica UK, hailed the partnership with Sky, saying it will widen consumers' choice.
"We're pleased to welcome Sky to our roster of innovative, successful partnerships, through which we help partners grow their offer to customers," he said.
"This will widen consumer choice still further and demonstrates the lively competitiveness of the UK market. We're looking forward to working with Sky."
On 24 November 2014, O2 was reported to be in negotiation with sector peer BT, as the latter had open talks to buy back the firm it had originally spun off in 2002, though BT then opted to enter exclusive talks with EE.
Earlier in January, Li Ka-shing, owner of Hutchison Whampoa and the Three network (which operates in the UK) entered talks to buy O2 for up to £10.25bn.
SKY shares were down 0.05% to 937.50p at 12:07 on Thursday.
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