Sky partners with O2 owners to offer quad-play package

Sky has negotiated terms with O2 owners Telefonica to offer wireless services alongside TV, broadband and phone to its 11.5 million subscribers.

The deal comes a few weeks after BT Group announced talks to acquire EE - the UK-based wireless provider owned by Deutsche Telekom and Orange - for £12.5 billion.

Terms of the deal were not disclosed, but Sky will now offer the quad-play package through O2 to customers, something BT Group and Virgin Media are trying to achieve.

Sky has been third place in the broadband battle for quite a few years, with Virgin Media's super-fast broadband speeds beating both Sky and BT Group.

It is unclear how this new partnership will affect the potential takeover of O2 by Three UK's owner Hutchison Whampoa, who were reportedly ready to pay £10 billion for O2.

The quad-play package is still a questionable asset, while it will no doubt tie more revenue into one company, it is not clear if UK citizens actually want mobile and broadband on the same package.

This is especially true for families with more than one phone bill, although Sky and BT might look to offer family plans that are cheaper for families with three or more mobiles.

Virgin Media and Vodafone are the last broadband and wireless company without any sort of partnership, and Vittorio Colao denied the possibility of acquiring Virgin Media's parent Liberty Global in a huge acquisition.

This does not mean Virgin Media could not offer Vodafone's services in the same partnership Sky and O2 are offering, even though Vodafone is a much larger company than O2 UK and might want more out of the deal.