Sky enters mobile market with O2 MVNO deal

Sky enters mobile market with O2 MVNO deal

Sky is launching a mobile service early next year through an MVNO deal with O2's parent company Telefónica.

Under the terms of the multi-year deal, Telefónica UK will provide Rupert Murdoch's Sky wholesale access to 2G, 3G and 4G services over its nationwide network. Financial terms of the deal were not disclosed.

"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 Jeremy Darroch, Sky's group chief executive.

This comes amid a series of deals which began in December when BT entered into exclusive talks to buy EE for £12.5 billion and – just this month –Telefónica agreeing to sell O2 UK to Hutchison Whampoa forapproximately £10 billion.

Sky's move into mobile services signals a continuing battle in the quad play market as providers jostle for position to offer consumers all four services.

The deal leaves Vodafone as the only mobile and fixed line provider in the UK.

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