1/23/2015 8:00:00 AM
Sky linked with O2 as quad play pressure mounts
As rumours swirled around Hutchinson Whampoa’s potential acquisition of O2, reports emerged that Sky was seeking to secure a partnership with the network.
Pressure has been increasing on the media giant to enter the quad play space since BT decided in late 2014 to pursue the purchase of a mobile network.
Sky has previously shown an interest in partnering with Vodafone, something that CCS Insight’s director of operator strategy, applications and content Paolo Pescatore thinks is a more logical move: ‘There’s definitely a sense that Telefonica is keen to sell O2, and the more companies interested the better. Sky has always had an open approach to getting its services to consumers; we know that it has looked at all of the mobile operators as the market moves towards multiplay. For us [at CCS Insight] it would make sense for Vodafone to acquire Sky considering where the two brands sit, not just in the UK but across Europe, and the bits of the jigsaw that are missing for both companies. Sky is so closely linked to Vodafone with the agreements that already exist that it would be quite a turnaround.
‘The cheapest route for Sky to do multiplay would be through an MVNO agreement. So far the management at Sky has been reluctant to embrace the multiplay world. There’s also evidence that Rupert Murdoch is not keen to have Sky acquired by someone else – the deal would have to be really sweet – but Vodafone has the capability to make that offer.’