Sky signs with O2 to become MVNO in 2016

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Operator to provide broadcaster with wholesale access to 2G, 3G and 4G services, enabling Sky to provide customers with a quad-play offering

Sky has signed a deal with O2 to become an MVNO for the first time. It is scheduled to launch next year.

O2 will provide Sky with wholesale access to its 2G, 3G and 4G services over its nationwide network. The MVNO is scheduled to launch next year.

The agreement sees the broadcaster’s add mobile voice and data services to its customer offering for the first time, completing its move into the quad-ply sector.

Sky already offers TV, broadband and home phone services across a customer base of more than 11.5 million subscribers.

It claims it has established itself as the UK’s most popular triple-play provider, with almost 40 per cent of that base now taking all three products.

Sky chief executive Jeremy Darroch said: “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.”

This deal also sees O2 expand its network of partners, as it currently provides airtime to its MVNOs Tesco Mobile and giffgaff.

It follows last Friday’s news that Three owner Hutchison Whampoa has entered into exclusive talks to buy O2 UK from Telefonica for £10.25 billion.

O2 UK chief executive Ronan Dunne concluded: “Sky understands the importance of a strong network and excellent customer experience and has made us a trusted partner to help deliver brilliant services. This will widen consumer choice still further and demonstrates the lively competitiveness of the UK market.”

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