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Friday, March 1, 2013

Sky to acquire fixed-line broadband and telephone service from O2 and BE

British Sky Broadcasting Group plc has agreed to buy the O2 and BE consumer broadband and fixed-line telephone businesses from Telefónica UK. Adding these half a million customers will make Sky the second-largest provider of broadband in the UK.

Sky is paying Telefonica £180 million for the deal, with the option of an extra £20 million if the transfer runs smoothly. It currently has 4.2 million broadband customers and 4 million telephone customers.

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.”

The deal is expected to be completed by the end of April subject to regulatory clearance.

Sky also owns public WiFi provider The Cloud. We spoke to Vince Russell of The Cloud in our podcast on 8th February; you can listen to the interview via the built-in audio player on our website or by downloading the MP3 file.

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