Jump to navigation
BT news

The new Sky and TalkTalk fibre-optic network has the potential to hurt BT, one analyst has claimed.

Enders Analysis believes the joint venture, which will see the broadband providers - along with CityFibre - launch fibre-to-the-premises services in York, "strikes at the heart of BT".

The firm said that despite the extent of the fibre build-out being "very modest", it could be a significant move.

"The rollout may be in limited areas, but these are very profitable areas from BT’s perspective, as dense housing makes line maintenance cheaper," Enders Analysis stated.

"In any case, removing revenue from a largely fixed cost base will be painful."

The firm compared Sky's move to construct its own fibre broadband network as being akin to BT's decision to launch subscription sport services last year.

With the launch of BT Sport in August 2013, the service provider moved into an area dominated by Sky in the UK for two decades.

BT has the UK's largest fibre broadband network by some distance, with the infrastructure used by other service providers on a wholesale basis.

But with Sky and TalkTalk set to lay their own fibre cables, consumers in some areas will soon have increased options for super-fast broadband.  

Join the conversation

comments powered by Disqus

Stay up to date

  • Google+ Follow uSwitchTech
  • Subscribe to our RSS feed

Latest Comments

  • Paul Barrett 6 hours ago EE TV review Why does this site talk about any other providers apart from Virgin; BT,3, Vodafone and Talk Talk These...
  • Chris Abalain 9 hours ago Sky TV content now available via... It is great, as I was annoyed when Sky was not on Ps3 to begin with. However I don't know why you have to...
  • PaulB 15 hours ago BT Infinity fibre broadband... How do I claim the £50M&S voucher from BT? I received an email for the sainsburys £125 gift card but...

Search news