Sky announced on Thursday that from 2016 it will begin offering mobile services in the U.K., after establishing a mobile virtual network operator (MVNO) deal with Telefonica.
Until now, Sky’s strategy has been to extend its premium content to mobile users via apps and partnerships. Its Sky Go app has 5.7 million users, while Vodafone bundles Sky Sports, as well as Sky’s streaming video service Now TV, with its 4G price plans.
"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 CEO Jeremy Darroch, in a statement.
The strategy is a logical one for Sky – incumbent BT is finalising its £12.5 billion acquisition of EE, currently the U.K.’s largest mobile operator by customers. The deal will add mobile to its portfolio of broadband and TV services.
The U.K.’s other triple-play provider, TalkTalk, recently struck a full MVNO deal with Telefonica, paving the way for it to launch 4G services, while Virgin Media has been offering MVNO services under the Virgin Mobile brand for years.
In addition, all eyes will be on Sky to see how its MVNO deal with Telefonica is affected by the likely merger between the latter’s mobile arm, O2, and 3UK.
3UK parent Hutchison Whampoa last week entered exclusive talks with Telefonica to acquire O2 for £10.25 billion. Should the deal go ahead, it will create the U.K.’s largest mobile operator by subscribers.
