BSkyB and TalkTalk join forces to reduce reliance on BT
Tuesday 15 April 2014
Rivals BSkyB and TalkTalk have teamed up to invest in their own ultra-fast fibre broadband network in an effort to reduce their reliance on BT’s wholesale network.
Sky and TalkTalk are launching a trial in York, with each company spending £5 million in a joint venture with AIM-listed operator CityFibre.
They will bypass BT’s infrastructure and offer fibre to people’s premises at speeds of 1 Gigabit or 1000 Mbps — 50 times faster than standard broadband.
The plan is to roll it out to more cities but CityFibre does not operate in London.
Espirito Santo bank said the alliance made sense as Sky and TalkTalk do not own their own broadband infrastructure and “it will give them negotiating power with BT”.
TalkTalk chief executive Dido Harding said: “This will bring competition to the infrastructure market and that has to be good for Britain and, in the end, for BT, although they may not be feeling that way this morning.”
It could ultimately lead to TalkTalk ceasing to use BT but “it’s a very long way away”, she added.
CityFibre boss Greg Mesch said that demand for fibre was soaring as standard broadband “will not be capable of handling the data needed” in five or ten years.
Joe Garner, chief executive of wholesale arm BT Openreach, said: "I welcome the competition." He insisted it "can only be a good thing" but pointed out "Openreach already offers 'fibre to the premises' in parts of York".
- 1 I was a Woman Against Feminism too
- 2 Fifty Shades of Grey movie trailer released: First look at Jamie Dornan as Christian Grey
- 3 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 4 Students offered grants if they tweet pro-Israeli propaganda
- 5 The Tory donor whose firm is one of Britain’s biggest tax avoiders - with HMRC's blessing
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned
Peaches Geldof: Her final day – and her fatal decision
Students offered grants if they tweet pro-Israeli propaganda
Israel-Gaza conflict: Israel may have committed war crimes, says UN human rights chief
Taiwan plane crash: Typhoon Matmo could have caused TransAsia Airways disaster, airline suspects
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£18000 - £20000 per annum + OTE £25K: SThree: SThree Group has been well estab...
competitive: Progressive Recruitment: This really is a fantastic chance to joi...
£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...
£60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: Business Anal...