Sky And Telefonica ‘Discuss’ Potential O2 Partnership

Steve McCaskill is editor of TechWeekEurope and ChannelBiz. He joined as a reporter in 2011 and covers all areas of IT, with a particular interest in telecommunications, mobile and networking, along with sports technology.

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Sky reportedly in talks to launch O2 MVNO, but takeover unlikely

Sky and Telefonica are reportedly in discussions about a possible mobile partnership that would help the satellite broadcaster compete with its rivals by offering ‘quad-play’ packages of multiple communications services.

According to Bloomberg, Sky is not necessarily interested in a takeover of O2, but is considering launching a Mobile Virtual Network Operator (MVNO) or possibly reselling O2 mobile contracts with other services, like broadband, landline and television.

Sky O2 partnership

o2rugbywtfSky is rumoured to have had similar talks with Vodafone in a bid to better compete with Virgin Media, TalkTalk and BT – which is currently negotiating a £12.5 billion takeover of EE – all of whom offer quad play bundles.

Both Telefonica and BskyB declined TechWeekEurope’s requests for comment.

Vodafone has recently announced plans to launch a consumer fixed line and televisions service and has been liked with a move for Virgin Media’s owner, cable giant Liberty Global. However Telefonica has no interest in getting involved with the so-called ‘quad play’ wars and is believed to open of a sale of O2.

BT, which sold O2 to Telefonica in 2005, was interested in a takeover but ultimately opted for rival EE. The latest speculation suggests Three’s owner Hutchison Whampoa is now interested in a £9 billion acquisition, mirroring its strategy in Ireland, where it owns both Three and O2

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