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Sky and Vodafone have held talks over a potential merger or joint collaboration, it has been reported.

According to the Sunday Times, the two broadband providers are considering linking up in a bid to combat a resurgent BT.

The former national telecoms operator is continuing to gain market share, with its ongoing fibre broadband rollout and subscription sport service helping to attract new subscribers.

High-level discussions are said to have been held between Sky and Vodafone, with the firms considering linking up on both TV and broadband.

However, reports suggest the companies are not considering the launch of a UK fibre broadband network to rival BT's.

As yet, neither Sky nor Vodafone has commented on reports of merger talks.

Last year, Sky acquired the home broadband business of O2 and also its sister company Be Broadband following Ofcom approval.

The deal made Sky the second-biggest broadband provider in the UK by number of customers, helping the firm to overtake Virgin Media.

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