O2 sells broadband business to Sky

O2 has sold its consumer broadband services to Sky. Rupert Murdoch’s telecoms giant has reached a deal with Telefonica UK, O2’s parent company, which will make Sky the second largest broadband provider in the UK.


Telefonica announced it has flogged both its flagship O2 broadband and fixed-line telephone businesses, and those of the BE brand – otherwise known as Be Un Limited – which it also owns. Sky has paid £180 million for the businesses, with an extra £20 million payable depending on the success of the changeover.

This means half a million O2 and Be Un Limited users will become Sky customers later this year. Telefonica says its O2 and BE customers will receive exactly the same service as they do currently when they’re switched to Sky, as the two firms work closely to ensure a smooth transition.

In a letter sent to customers, Telefonica says it’s getting rid of its broadband and landline businesses because it wants to focus on the delivery of its mobile services. In particular, its delivery of next-generation 4G mobile broadband.