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Take that, BT: Vodafone and BSkyB mull over broadband tie-up - report

Unlikely to build a multi-billion pound fibre network, though

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BSkyB and Vodafone have reportedly discussed the possibility of teaming up on a high-speed broadband service.

According to the Sunday Times (paid subscription required), a number of "high-level" confabs have already taken place between the pay-TV company and the mobile carrier.

However, senior sources have told the newspaper that such a business strategy to compete with one-time national telco BT would fall far short of building a UK-wide, multi-billion pound fibre broadband network.

Voda is apparently nervous about BT's recent investment-heavy shift into sports TV rights and its separate mobile service tie-up with rival carrier EE.

To date, BT has spent around £2bn as it competes with BSkyB on its own turf. In November, BT paid £900m - way above the market odds - to show all UEFA Champions League and UEFA Europa League football matches for three seasons from 2015/16. For the present three-year Champions League seasons BSkyB and ITV together pay nearly £400m for the live football matches.

The Times reported yesterday that BSkyB and Vodafone were considering inking deals on Sky's sports and movie channels, as well as forming an alliance on a superfast broadband service.

BSkyB and Vodafone declined to comment on this story. ®

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