Advanced Television

Sky mobile network?

May 28, 2012

Is Sky planning its own mobile network? According to reports, it has been in talks with both Orange and T-Mobile as it ponders a bid for the airwaves put up for sale by their Everything Everywhere consortium.

Mobile would make Sky a full-fledged multi-play provider with 4G capability. The investment required would be £3-4 billion (€5-6bn) – easily affordable, though perhaps difficult to get from investors eager for higher dividends. However, Sky’s interest is said to have cooled since talks with Morgan Stanley, which is handling the auction.

The report appeared in the Sunday Times, owned by News Corp, and the subtext might be ‘This is the kind of game changing move you could have expected if we had taken over.’ With News Corp’s influence possibly waning, shareholder returns may take may take priority over risky transformative investments.

Responding to the reports Monday May 28, a Sky spokesperson said: “As you might expect, we regularly meet with a wide range of companies to explore and understand potential opportunities. While we continue to extend our leadership in mobile content, we currently have no plans to offer mobile access beyond our existing public WiFi network.”

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