Sky News Update: Sky Deal With O2 Spells Trouble

Sky News

Sky New Acquisition

The recent Sky News update in March this year announced that they had bought O2’s broadband and home phone business from the parent company Telefonica. The vast number of O2 and BE (acquired by O2 last year) customers in the UK are now waiting anxiously to discover what this means for them ultimately.

The £200m deal, which has impacted upon 500,000 households in the UK, may affect the service that these customers receive as well as how much they pay for that service. The worries that these customers have regarding this takeover stem from the issues faced by TalkTalk during their Tiscali and AOL takeover bid which culminated in Ofcom fining TalkTalk for their faults.

This takeover dictates a reduction in the number of businesses dominating the market – it is now just four: BT, Sky, TalkTalk and Virgin. Any customer with anxieties regarding this switch should contact Sky’s customer service team.

Sky’s Implications for Existing Customers

Sky have reassured all of their customers that there will not be a repeat of the Tiscali debacle and that when they do switch all of the accounts over – which should be in August of this year – customers will lose their connection for just a few minutes.

Sky have stated that it will honour all of O2’s current contractual conditions and then when the contracts end Sky’s aim will be to have all customers paying the same price – with customers being offered the equivalent deal but on Sky. Should any customers not wish to take out a contract with Sky, they are welcome to switch whenever; immediately or when their contract ends.

When the tariffs are compared it becomes clear that customers should notice very little difference between the two companies. Customers who are on BE broadband-only tariffs will pay £15 per month and will have to switch to a direct debit payment in order to avoid an extra £4 per month charge for using their credit card.

The complications arise in relation to the telephone deals – Sky’s Anytime package permits free calls to 0870 numbers but not to 0845 numbers, which are used but a great many banks these days. Those who had a Sky contract for their TV package but O2 for their phones and broadband service may be fortunate enough to see their bills fall by a few pounds each month.

Finally, while Sky’s ‘truly unlimited downloads with no traffic management’ is a significant appeal many O2 mobile customers are predicted to look elsewhere for a better deal.

For more information on Sky News, visit http://news.sky.com/

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