Vodafone and Sky are apparently in talks about joining up as partners in the hope that they can compete with BT in the broadband market.
There has been no official announcement and no comments made from Vodafone or BSkyB about the rumour of this happening but according to The Sunday Times (paid subscription needed) there have been some “senior sources” commenting on it and saying that it would be unlikely that the two firms would look to build a nationwide fibre network due to the cost involved.
BT are investing heavily in their own fibre optic network with up to £3 billion being spent to roll out their network across much of the UK, along with extra money from the government’s BDUK (Broadband Delivery UK) scheme and local councils too.
It is believed the discussions between BSkyB and Vodafone were along the lines of deals being struck on Sky’s sports and movie channels and joining up for a high speed broadband service too, although no confirmation or comment has been made by either company.
BSkyB will most definitely be thinking of ways to compete with BT. In November of last year £1.5 billion was wiped off the value of BSkyB shares after BT won the exclusive rights to show Champions League football from 2015 for 3 years at a cost of around £900 million for the 3 years, previously Sky & ITV had shared the rights for the previous 3 years at a cost of £400 million which goes to show how much BT are flexing their muscles and how serious they are about breaking the live sporting power for Sky. BT is certainly getting into the Sports TV scene in a big way, already this year they have won the rights to screen 38 live Premier League football games and also won exclusive rights to a number of other sporting events.