Sky is planning to become a cellular network provider, with its own 4G network set to launch in 2016. The company's Chief Executive believes that Sky has proven that it is capable of launching new services at scale, so launching a new network service could pay off.
Jeremy Darroch, Sky's Group Chief Executive said in the announcement that “As the UK’s leading brand for home entertainment and communications, Sky has a proven ability to launch new services, at scale. 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.”
“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.”
It has been rumored for a while that Sky will launch its own network and was even eyeing up O2, until Three swooped in and announced plans to purchase the network. With EE merging with BT and O2 possibly merging with Three assuming the deal goes through, then the UK network market will have more room for competition.
The Sky network will borrow from Telefonica's own bandwidth. Telefonica currently owns O2 and also lends signal to Tesco mobile customers- although O2 may be sold to Three soon.
Ronan Dunne, Telefonica UK's Chief Executive said that the company is “pleased to welcome Sky” to its roster of partnerships.
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KitGuru Says: This will be good for consumer choice in the UK network market and may lead to some decent competition, which is always good.