They also have co-operative form in the past when sky bought all of O2's fixed line broadband customers.
As we predicted, Sky is to launch an MVNO and get competitive against the other networks' four-play offerings. What we got wrong in our prediction was that the deal would be with Vodafone; Sky has instead jumped into bed with O2. The deal will allow Sky to offer a Four-play service of TV, Broadband, fixed and mobile phones, …
>Honestly, I'm surprised Sky didn't just counter-bid against Three.
Look at Ireland and Three's takeover of O2-IRE, specifically the EU competition decision and the requirement for network sharing. What the Sky deal almost certainly does is to make any competition review of the Three takeover of O2-UK a formality; something that could not be said if Sky were to directly approach O2-UK.
From a technical perspective it would also put Sky in a similar position to BT with respect to EE and the merger of Orange-UK with T-Mobile-UK, namely Sky will benefit from (and encourage) the merger of O2-UK and Three-UK into a single entity without directly incurring the costs and effort involved.
"What the Sky deal almost certainly does is to make any competition review of the Three takeover of O2-UK a formality; something that could not be said if Sky were to directly approach O2-UK."
Why? Sky and O2 don't compete, so a merge of Sky and O2 would create a stronger company which will be more aggressive towards BT/EE, Talk-Talk/? Vodaphone/Virgin and other competitors. Which would be better for the consumer.
Because they didn't need to. They don't want to run a mobile network, they just want to offer a mobile service. Much cheaper to do an MVNO deal and it will achieve the same results for them. It also gives them a competitive edge as they don't have to manage the network like some other players.
As a newly returned O2 subscriber because Three didn't really work too well whilst I was at home, I can say that their network doesn't seem to be. Dropped calls, dud calls are a regular occurance around this area. At least with Three it was a poor signal issue but you knew what to expect. Here, O2 is up and down like a yo-yo. Plus, the voice quality on Three is noticably better, even when O2 is on 4G!
I'm currently with sky for phone and broadband, and giffgaff for mobile. Depending on the deals that come out of this I may finally have reason to get a different sky package. Likewise with BT now stating they're going to be releasing some g.fast super fibre in the future it may push fibre prices down.
Part of me is interested in this. The other part is worried that the first part is interested since I can only see things going wrong.
Considering my parents are already with sky for everything though, and their mobile phone deals are rubbish, they might actually decide to go all in with sky... Maybe I'll just let them be guinea pigs for me >.>
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