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Telefonica Deal Allows Sky to Venture into U.K. Mobile Market

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Published on : Jan 29, 2015

Sky Telecom Inc. on Thursday announced that beginning from 2016, the telecommunications company will be offering mobile services in the United Kingdom. This will be possible after the mobile virtual network operator (MVNO) deal with Spanish multinational telecommunications company Telefonica is finalized.

Sky’s strategy so far has been to deliver premium content to its mobile users through partnerships and apps. The Sky Go app already has 5.7 million users. Vodafone, on the other hand, has bundles Sky Sports and the streaming video service by Sky called Now TV with its numerous 4G price plans.

Jeremy Darroch, chief executive officer at Sky said in a statement that the partnership with Telefonica U.K. will help the company to increase its expertise in service, innovation, as well as content that will enable it to launch a wide range of innovative and much-awaited series. The deal will also allow the telecom company to make the most of the plentiful opportunities that exist in the ever and rapidly changing mobile industry. 

Presently, on the basis of customers, EE is the largest mobile operator in the U.K. and BT is already on its way to closing in on its GBP 12.5 billion acquisition of EE. This deal will now include mobile as part of its portfolio of TV and broadband services. The deal with Telefonica is only strategic for Sky. 

Recently, TalkTalk - another triple-play provider in the U.K. struck a complete mobile virtual network operator deal with Telefonica. This has now paved the way for launching its 4G services. Virgin Media has been offering similar mobile virtual network operator services under the brand Virgin Mobile for many years.