BSkyB buys O2 and BE broadband businesses from Telefonica

V_R

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Interesting developments....

Sky has announced it is to acquire the UK fixed line broadband and and telephone services from Telefónica. This acquisition will make Sky the second largest broadband provider in the UK at around 4.76 million broadband customers.
There is to be an initial payment of £180 million to Telefónica for the consumer broadband, home phone and line rental customers with a further £20m payment upon successful completion to the Sky full LLU network.
Read more: http://www.thinkbroadband.com/news/5734-bskyb-now-larger-than-virgin-media.html


British Sky Broadcasting is buying the UK broadband and fixed line businesses of Spain's Telefonica.

It will give Sky half a million customers who use the O2 and BE brands for their home phone or broadband.

It will pay an initial £180m to Telefonica, with up to another £20m being paid once the customers have been switched to Sky.
Sky said the transaction would make it the second biggest UK broadband provider.

Telefonica said the deal would allow it to concentrate on providing better mobile services, including rolling out 4G.

Sky has taken on 4.2 million broadband customers since launching the service in 2006.

The deal will allow Sky to leapfrog Virgin Media and close the gap on the number one provider: BT.

If it is cleared by regulators the deal should be completed in April.

"Sky has been the UK's fastest-growing broadband and telephony provider since we entered the market six years ago," said BSkyB chief executive Jeremy Darroch.

"The acquisition of Telefonica UK's consumer broadband and fixed-line telephony business will help us accelerate this growth."
Read more: http://www.bbc.co.uk/news/business-21627614


01 March 2013
Sky to acquire Telefónica UK’s broadband and fixed-line telephony business

British Sky Broadcasting Group plc (Sky) today announces that it has reached an agreement with Telefónica UK for the proposed acquisition of its O2 and BE consumer broadband and fixed-line telephony business. The transaction will make Sky the second-largest provider in the UK broadband market, building on its existing position as the UK’s fastest-growing broadband and telephony business.

Telefónica UK’s consumer broadband and fixed-line telephony customers, of which there are currently over half a million, will become Sky customers for those services on completion. By creating the UK’s second-largest home broadband provider, the acquisition will deliver further advantages of scale for Sky’s home communications business.

Under the terms of the agreement, Sky will pay a consideration of £180 million to Telefónica UK for the consumer broadband, home phone and line rental customers served by the O2 and BE brands. An extra contingent amount, not exceeding £20 million, may be payable dependent upon the successful delivery and completion of the customer migration process by Telefónica UK. Post completion, O2 and BE customers will be migrated onto Sky’s fully unbundled network, supported by a nationwide all-fibre core, which reaches 84% of all UK homes.

Following sustained growth in demand for broadband and home telephony since it entered the home communications market six years ago, Sky has built a business with 4.2 million broadband customers and 4 million telephony customers (as at 31 December 2012). In that time, Sky has established itself as the UK’s most popular triple-play provider with 3.6 million triple-play customers, one third of its base. This transaction will help Sky meet the growing demand from customers to take multiple products.

Jeremy Darroch, Sky’s Chief Executive, said: “Sky has been the UK’s fastest-growing broadband and telephony provider since we entered the market six years ago. From a standing start in 2006, we have added more than 4.2 million broadband customers. The acquisition of Telefónica UK’s consumer broadband and fixed-line telephony business will help us accelerate this growth.

“We believe that the O2 and BE consumer broadband and telephony business is a great fit, with customers used to high-quality products and strong levels of customer service. We look forward to welcoming these new customers to Sky and giving them access to our wide range of high-quality products, great value and industry-leading customer service.”

Ronan Dunne, Chief Executive of Telefónica UK, added: “Sky offers great value, totally unlimited broadband which includes unlimited fibre services. As we focus on delivering best-in-class mobile connectivity, including next generation (4G) services, we believe this agreement is the best way of helping our customers get the highest quality home broadband experience from a leading organisation in the market.”

This acquisition is the latest move by Sky to take advantage of the growth opportunity in home communications. Sky has added 382,000 customers (at 31 December 2012) for standalone home communications since the introduction of the service in 2010. In addition, Sky launched broadband and telephony products in the Republic of Ireland in February 2013 to further support organic growth.

The acquisition will be funded from existing cash reserves and is expected to be accretive to earnings per share in the second full year of ownership.

The acquisition is due to complete by the end of April 2013 and is subject to regulatory clearance.
Source: http://corporate.sky.com/media/pres...k_broadband_and_fixed_line_telephony_business
 

Ian

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I'm currently with O2 and I'm very pleased with them - although they've had a few blips in the past.

What do people here think of Sky BB? Any good? :)

I had a look on their website and it says "unlimited"... is that a true reflection, or do they throttle at all?
 

V_R

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I'm not with Sky but as far as i know, they don't have any form of throttling/shaping. :)
 

floppybootstomp

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Flops puts line through O2 & BE on his list of preferred ISP's.

Why? Rupert Murdoch, 'nuff said.

Perhaps foolish of me but I have a long memory.

Kinda related, O2 was one of six UK ISP's who recently agreed to block access for their customers to three pirate software sites, the other five were the usual suspects.

My ISP, Zen, did not block access. Make of that what you will, boys & girls :)
 

Ian

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I'm not with Sky but as far as i know, they don't have any form of throttling/shaping. :)

Thanks V_R, that's good to know.

I'm hoping that I'll be able to get Fibre Optic BB at some point in the near future, so may end up jumping ship anyway.
 

crazylegs

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Another Sky Monopoly so they can try even further in there domination of services, expect prices to rise aswell now!
 
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What do people here think of Sky BB? Any good? :)

I had a look on their website and it says "unlimited"... is that a true reflection, or do they throttle at all?
Have Sky fiber optic BB and very good it is too.:thumb:
On the unlimited package but you need to do some serious downloading to get near it!
On the whole the best service we have had in years.
 

Ian

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Have Sky fiber optic BB and very good it is too.:thumb:
On the unlimited package but you need to do some serious downloading to get near it!
On the whole the best service we have had in years.

Thanks for the feedback Feckit - glad to hear it's not bad :thumb:.
 

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