Sky to launch new mobile phone service using O2's network

Sky will launch a new mobile phone service this winter which will run on O2's network and will take on the likes of BT Mobile and Virgin Media.

People will be asked to express their interest for the new service but details of available plans will be released post launch.

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Thanks to its upcoming mobile phone service using O2's network, Sky will be able to rival BT effectively in all four services- landline, broadband, TV and mobile. BT already has a huge lead since it has its own BT Mobile as well as EE's network in its grasp, so it won't be easy for Sky to capture a major share of the market until it pours a lot of funds in new acquisitions.

The new phone service will be a result of an agreement signed in 2015 between Sky and Telefonica, the parent company of O2. Even though the company is yet to reveal its range of plans and services, it seems quite confident that people will be showing a lot of interest in Sky Mobile once it is launched. There are literally millions of customers for us to go after. We know that our customers are not only interested in Sky Mobile, but once they have been shown the proposition, they would consider switching to Sky," said Stephen Van Rooyen, Chief Executive of Sky UK and Ireland.

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While Quad Play service providers like Virgin Media and Talk Talk have been around for a while, BT's new strategies with BT Mobile are starting to show signs of progress. The network's increased emphasis on Pay Monthly plans saw it gaining 280,000 postpaid customers in the third quarter while losing 325,000 prepaid customers in the same period. Given that the earning for every postpaid user is a lot more than earning for every prepaid user, BT Mobile made handsome profits in the quarter. The network is also offering Family SIM Plans, using which families can save hundreds of pounds in mobile bills every year by incorporating their bills into a single plan.

With Sky set to launch its own mobile service in the coming months, it will be interesting to see how it curates its plans, services and what benefits it will offer to customers to attract the kind of attention the company thinks it will generate.

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