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Sky and TalkTalk roll out (a bit of) fibre - Venture Insights

Report Overview

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Sky and TalkTalk roll out (a bit of) fibre

PublisherEnders Analysis.
Publish Date April 15, 2014
Sector Fixed Line (Internet and Voice).
Company BT, Sky Group, TalkTalk.

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Sky and TalkTalk are rolling out fibre in a small part of York, using a model that they could potentially extend to cover 10-15% of UK households.

The economics of greenfield fibre build are still terrible in general, with even building in cherry-picked areas very hard to justify under current conditions, although the economics will improve over time as demand for speed increases.

Moreover, once it is built it is built, and BT loses the wholesale revenue forever. Taking the hint and offering more reasonable wholesale fibre pricing may not be a bad option if Sky and TalkTalk persist.