Sky buying O2 and BE Broadband
# Mar 1, 10:04 AM by cfteam
BkyB have reached agreement with Spain’s Telefonica to acquire their UK consumer broadband and fixed phone line services which are currently branded as O2 and BE. The deal, which is subject to regulatory approval, would see Sky become the second largest UK broadband provider.
O2 and BE combined have over half a million subscribers. These will be migrated to the Sky unbundled network platform, which currently reaches 84% of UK homes.
Sky have been on a rapid programme of growth for their broadband and telephony services, having entered the market 6 years ago. As of December 2012, they had some 4 million phone line subscribers and 4.2 million broadband users, placing them a very close third to Virgin Media.
Telefonica will now concentrate on developing their mobile phone services, focusing on the new 4G services.
The deal is costing Sky an initial Â£180 million, with a further sum of up to Â£20 million payable based on the successful migration of customers, which it is hoped will take place by the end of April.