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    Sky to Acquire Telefónica UK's Broadband and Fixed-Line Telephony Business

    This is a discussion on Sky to Acquire Telefónica UK's Broadband and Fixed-Line Telephony Business within the Sky news and announcements forums, part of the SkyUser Announcements category; Sky to Acquire Telefónica UK...

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      Sky to Acquire Telefónica UK's Broadband and Fixed-Line Telephony Business



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      Re: Sky to Acquire Telefónica UK's Broadband and Fixed-Line Telephony Business

      Consumer choice reduced yet further. However "The acquisition is due to complete by the end of April 2013 and is subject to regulatory clearance." But as BT have a larger market share than the combined Sky+Telefonica it seems it will get automatic approval.

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      "BSkyB now larger than Virgin Media" says the headline in thinkbroadband's news article about this.
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    5. #4
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      Re: Sky to Acquire Telefónica UK's Broadband and Fixed-Line Telephony Business

      There is going to be a lot of unhappy BE/O2 customers out there. They will loose their Annex M and fixed IP addresses for a start. But as these ISPs had opted out of Fibre they were haemorrhaging customers at an alarming rate. It seems O2 is putting all its eggs in the 4G basket.

      I thought TalkTalk were in the second place of broadband suppliers?

      TomD


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      Re: Sky to Acquire Telefónica UK's Broadband and Fixed-Line Telephony Business

      Certainly this will create a whole lot of changes for Sky and for O2 and Be customers the changes will be huge.

      For a start you can currently use your own router on O2 and Be, something which you can't do with Sky. Also no username/password is required. I think that a lot of O2 & Be customers will be upset with that alone. If I recall correctly, you can also get paired lines with O2 or Be, something that very few ISPs support.

      Certainly this could improve the backhaul for some, but I fear that this will be at the expense of Sky's customers in some areas.

      Sky did buy out Easynet's systems at one point, so there will be some experience from joining two networks together already. However many exchanges have both sets of kit already in place. From looking at the maps on SamKnows, there does not appear to be much coverage from O2/Be where Sky are not already present.

      This suggests to me that actually Sky have not expanded the number of exchanges covered, but rather just the number of potential customers.

      Another thing which I am sure will be answered in dues course is the O2 shops. Currently they are in a position to sell not just the O2 mobiles, but also O2 telephones and broadband. Will they soon start selling Sky products as well?

      Of course this is down to the approval of the regulators and no doubt the people who determine whether this is in the interests of the customers too.

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      Re: Sky to Acquire Telefónica UK's Broadband and Fixed-Line Telephony Business

      For a start you can currently use your own router on O2 and Be
      Thats an interesting point. Are Sky going to supply their half a million new customers with Sky Hubs, or will they run the O2 side as separate business, maybe using it it to supply Business Broadband?

      TomD


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    8. #7
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      According to BBC Business News website, biggest UK ISP's by subscriber:

      BT Retail = 6.569m
      VM = 4.475m
      Sky = 4.235m
      TT = 4.053m
      EE = 0.693m
      O2 = 0.560m

      So Sky + O2 will be > VM.
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      They might just run it as a separate brand for a while until all the technicalities and differences arising from the acquisition get sorted out. I would imagine this might be a biggish job...
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      Re: Sky to Acquire Telefónica UK's Broadband and Fixed-Line Telephony Business

      Not knowing enough about the kit that Sky uses and nothing at all about the O2/Be kit, I do not know how difficult it would be to migrate everyone across from one to the other network. Certainly Sky will need to get routers out to everyone who is moved across and this will cost some money for them, with various individuals moaning like crazy.

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      Me neither but integrations arising from large acquisitions and mergers tend to be complicated and time consuming from a planning and implementation point of view, and sometimes messy at the sharp (customer) end
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