Feeds

BSkyB reels in Wi-Fi network operator The Cloud

Buys hotspot specialist, bigs up growing broadband customer base

The smart choice: opportunity from uncertainty

BSkyB confirmed this morning that it bought Wi-Fi hotspot provider The Cloud Networks Ltd earlier this month for an undisclosed sum.

It said the deal was subject to regulatory clearance in Jersey, where The Cloud recently inked a partnership with Jersey Telecom.

Sky said it has bought The Cloud to beef up its mobile content portfolio.

"The acquisition gives us ownership of over 5,000 public Wi-Fi locations across the UK, ensuring that customers can access our online service at a network of convenient locations," it said in a statement.

"In addition, the initiative will complement our existing broadband services by offering customers a comprehensive option for Wi-Fi connectivity while they are on the move."

It said that The Cloud had gross assets of £17.1m as of 31 December 2009.

Sky, which also issued its second quarter report to the City today, saw a better-than-expected 40 per cent increase in net profit in part, it said, due to the company's 10 million-strong customer base.

It claimed the "fastest broadband growth in 10 quarters with 204,000 net additions".

For the three months ended 31 December 2010, Sky posted net profit of £179m, up from £128m for the same period a year earlier.

Profit before tax was £237m on Q2 sales of £1.66bn for the quarter, compared to revenues of £1.44bn and pre-tax profit of £134m in the same period in 2009. The full results can be viewed here (pdf).

Sky rival O2 took the opportunity to roll out a classic "we welcome competition, but we're still better than you" statement today.

"As a pioneer of Wi-Fi in the UK, we welcome new entrants to the Wi-Fi market - increased competition can only be a good thing for the consumer," said O2 Wi-Fi managing director Gavin Franks.

"For too long, public Wi-Fi has fallen short of consumers' needs and expectations. That's why we are creating a Wi-Fi network that is three times faster than most, requires one sign-up, and is open to absolutely everyone for free." ®

Mobile application security vulnerability report

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.