Vodafone and BSkyB want to clip BT’s broadband wings
Vodafone and Sky are reportedly involved in high level discussions about how both the companies could come together to stop BT’s growing dominance in the broadband sector.
According to the Sunday Times, Sky and Vodafone have discussed options on Sky’s sports and movies channels or collaborating on a high speed broadband service. The companies are still in talks with each other and are yet to finalize a deal, sources reported.
With an investment of more than £3bn, BT has plans of building its high-speed fibre network expected to reach 90 percent of UK homes by next year. The company will also be investing around £2bn to get sports broadcast rights for its BT Sport channels, the newspaper said.
According to reports, the two companies are less likely to go ahead with plans of building a nationwide high-speed fibre network as such an undertaking will cost several billion pounds.
BT also plans to head towards offering mobile services to its customers sometime later this year making the company quad-play provider of broadband, TV, fixed-line phone and mobile phone services.
BSkyB shares since November have lost more than £1.5bn of their value after BT won the right action to telecast Champions League football matches on its Sport channels.