Sky, Liberty reported to be discussing fibre network partnership
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Joseph O'Halloran
| 02 September 2019

Financial news outlets in the UK are reporting that pay-TV and internet service provider Sky is in talks with Virgin Media owner Liberty Global over a potential investment and tenancy in a fibre optic network in the country.

According to the Financial Times, Liberty Global is acting to provide more competitive pressure on incumbent telco BT in the UK broadband market and has appointed investment bank LionTree to find partners for a new joint venture company that will build a full fibre network to millions of homes outside the most populated areas of the country. Indeed, the FT reported that Liberty has already formally registered the group as Liberty Fibre Ltd.

Virgin Media, the UK’s second-largest telecoms network, would be the anchor tenant for the business and in April 2019 announced that it was bringing all of its telecoms, internet and TV services together for the first time in one bundle including a new top broadband tier with a speed of 500Mbps.

According to three people with direct knowledge of the negotiations, said the FT, Sky has opened talks over participating in the joint venture both as an investor and a customer. Sky is in separate talks over a wholesale deal to use Virgin Media’s existing cable network which covers half the country. Liberty Global is said to on the verge of applying to UK regulator Ofcom for the necessary approval to start building networks and expects to start laying new fibre by next summer.

Increased access to services via online IP-based networks assets was first announced as a strategic goal by Sky in January 2018.