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Sky in talks to launch a mobile service

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Sky in talks to launch a mobile service
Sky's the limit

Sky is in talks to launch its own mobile service.

According to The Times, Sky has met with Vodafone, EE and O2 about using their networks to become an MVNO (Mobile Virtual Network Operator). In other words, Sky would use an existing network but rebadge it, just like Tesco Mobile, GiffGaff and Asda Mobile.

Virgin Media and TalkTalk already offer mobile contracts alongside their broadband, TV and landline offerings, and BT is set to do so soon. So it would make sense for Sky to get on board sooner rather than later.

Some mobile networks are already diversifying. EE recently unveiled its EE TV set-top box, which will launch before Christmas.

BSkyB CEO Jeremy Darroch said the company was always in touch with mobile networks, but would only launch its own phone service if enough customers wanted it.

"We'll always remain open to opportunities, and this is something that we keep a close eye on," he said. "We keep our options under review. If we thought there was strong customer demand, then we can be in a good place to respond. We've got a very significant customer base already that we know we can cross-sell into very successfully."

Sky recently announced its quarterly earnings. Operating profits rose 11 per cent year-on-year, while TV subscriber growth accelerated despite increasing competition from BT.

It added 46,000 new subscribers in the last quarter, compared to 37,000 in the same period last year. At the end of September, it had 10.73 million TV customers, including users of its subscription-free Now TV service.

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