Vodafone and Sky in deal talks

Oliver Smith
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VODAFONE and Sky are holding high-level discussions on how the two companies could collaborate in order to curb BT’s growing reach in the broadband sector.

The two firms have discussed options including a deal on Sky’s sports and movies channels or collaborating on a broadband service, people aware of the discussions told City AM. However talks are said to be ongoing and a deal has not been reached.

BT has been building its high-speed fibre network which will reach 90 per cent of UK homes next year as part of a £3bn investment, along with a £2bn investment in sports broadcast rights for its BT Sport channels.

BT is also thought to be preparing a mobile offering for customers later this year – the culmination of a deal with EE that currently allows BT to offer mobile services to its employees and business customers – moving BT towards the coveted position of being a so-called quad-play provider of broadband, TV, fixed-line phone and mobile phone services to customers.

Shares in BSkyB have lost more than £1.5bn of their value since November, when BT won an auction to show Champions League football matches on its BT Sport channels.