Sky plots move into mobile

Sky is thought to be plotting a move into the mobile phone market to strengthen its offer against other TV, broadband and landline providers.

SkyGo

The satellite broadcaster has been in discussions to bid for a portion of the airwaves put up for sale by Everything Everywhere. The aim was to offer a mobile phone network to its customers, according to The Sunday Times.

Having a mobile package would bring Sky in line with rival Virgin, which also offers pay as you go and pay monthly phones as well as TV, broadband and landlines, and would trump BT, which only offers fixed line services. Sky already dominates this sector with more than 10.5 million customers.

A move into the mobile phone market would also potentially increase Sky’s average revenue per customer, which is a key metric in measuring such companies’ success. In its latest results for the nine months to 31 March, Sky’s average revenue per customer was up £9 year-on-year to £546.

It could also strengthen Sky’s position against new rivals such as Netflix and LoveFilm. It could potentially offer special internet television deals for its mobile customers.

BSkyB is understood to have met with Everything Everywhere several months ago about the mobile company’s forced sale of its spectrum to have an exploratory conversation. It is not thought the two companies have met again recently.

A BSkyB spokesman says: “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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