How will Sky react to BT Mobile launch?

BT’s return to the consumer mobile phone market will force Sky to act quickly and launch its rival service as soon as possible, an analyst believes.

CCS Insight director Paolo Pescatore thinks BT will be in a strong position next year, putting competitors at risk.

He says the company is a “credible player,” and that it will become even stronger with the inclusion of EE: "BT is a credible player in the telecoms market and will be in a far stronger position next year with the inclusion of EE, subject to regulatory approval," he said to the Digital Spy.

He believes Sky should react fast if it wants to stay in the race.

"Rivals should be threatened by this move and Sky in particular will need to react given how punchy BT's SIM only deals are. With this in mind Sky may need to launch mobile a lot sooner."

With the launch of BT Mobile, offering a range of 4G subscriptions, the company has re-entered the consumer mobile phone market.

Its cheapest offer is aggressively priced at a discounted rate of £5 a month for existing BT broadband customers, BBC reported.

"Offering BT customers the UK's best value 4G data deal is a great way to start our journey towards re-establishing ourselves as a major player in consumer mobile," said BT Consumer chief executive John Petter.

"These great value deals are a thank you from us to loyal BT Broadband homes. We are offering customers a new type of great value mobile deal that offers more than just data, minutes and texts."