Sky is set to add a range of mobile voice and data services to its customer offering for the first time, following a new agreement with Telefonica UK.
Under the terms of the multi-year deal, Telefonica UK will give Sky wholesale access to 2D, 3G and 4G services, with Sky planning to launch its first mobile service to customers in 2016.
The move builds upon Sky’s existing place in the mobile market with mobile TV service Sky Go, which the company claims, with 5.7 million registered users, leads the European market.
“As the UK’s leading brand for home entertainment and communications, Sky has a proven ability to launch new services, at scale,” said group chief executive, Jeremy Darroch. “We know our 11.5 million customers trust Sky to offer them the best quality and choice and have an appetite to take more from us.
“Through our partnership with Telefonica 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.”
Ronan Dunne, chief executive of Telefonica UK, added: “We’re pleased to welcome Sky to our roster of innovative, successful partnerships, through which we help partners grow their offer to customers.
“Sky understands the importance of a strong network and excellent customer experience and has made us a trusted partner to help deliver brilliant services. This will widen consumer choice still further and demonstrates the lively competitiveness of the UK market. We’re looking forward to working with Sky.”
Kantar Worldpanel’s consumer insight director, Imran Choudary, said that the move will “safeguard” Sky from competition.
“Sky TV currently has 62% of the British consumer pay TV market which gives it a huge existing customer base for its new mobile service,” he said. “By doing a deal with O2, Sky is now able to offer a full quad play package and has safeguarded itself against the likes of Talk Talk and the impending BT/EE partnership.
“For companies such as Vodafone this move further reinforces the need to forge their own alliances or be left out in this rapidly-changing landscape.”
