Sky is launching a mobile service and going after its existing customers first

Van rooyenSkyStephen van Rooyen, Sky’s UK and Ireland CEO.

Sky is preparing to launch a mobile service, according to the company’s UK and Ireland CEO Stephen van Rooyen.

In a presentation at Sky’s Investor Day earlier this week, van Rooyen said “there are literally millions of customers to go after” to take share of the £15 billion mobile market.

He said two-thirds of Sky customers would consider switching after seeing the proposition. Users of Sky Home make up almost 50% of all mobile contracts in the UK.

Details of the proposition and pricing for a full market-wide launch will follow in the new year, but pre-registration for Sky’s existing customers will open in two weeks, on October 31.

Analyst at RBC Capital Wilton Fry told the Financial Times he expects the price to launch at around £10 for 10 GB of data per month.

Sky has grown to become the UK’s second-biggest broadband provider behind BT, the presentation referenced, a market it entered in 2005.

The announcement of a new mobile service comes after the company suffered a marked increase in its “churn” rate in the UK (the number of customers leaving the company), with analysts blaming the rise of Netflix.

The addition of mobile will make Sky the latest UK major broadband provider to offer a so-called “quadplay” bundle (fixed-line telephone, mobile phone, broadband, and pay-TV services).

In August this year, Sky’s rival BT purchased the UK’s largest mobile operator EE for £12.5 billion.

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