Sky Deals Major Blow to BT with CityFibre Broadband Partnership

Shakeup in UK Telecom Market as Sky Switches Network Provider

In a surprising move that sent shockwaves through the British telecom industry, Sky has announced it will partner with CityFibre to deliver full-fiber broadband to millions of homes across the UK. The multi-year deal is a major setback for BT, which had been Sky’s network provider.

“This partnership with CityFibre allows us to accelerate our full-fiber rollout plans and offer ultrafast speeds to even more customers,” said Dana Strong, CEO of Sky. Industry analysts estimate the deal could be worth over £200 million.

BT Loses Key Customer as Sky Jumps Ship

For BT, losing Sky as a wholesale client is a significant hit. Sky has over 6 million broadband customers in the UK, representing nearly a third of BT’s wholesale business.

“Losing a major client like Sky will definitely sting,” said telecom analyst James Barford of Enders Analysis. “BT will need to hustle to make up that lost revenue and show they can still compete in this space.”

CityFibre Poised for Rapid Expansion

The deal is a huge win for CityFibre, an upstart fiber network provider taking on giants like BT and Virgin Media. With Sky as an anchor tenant, CityFibre plans to invest over £4 billion to reach 8 million premises by 2025.

“Sky choosing CityFibre validates our model and the quality of our network,” said Greg Mesch, CEO of CityFibre. “This accelerates our vision of becoming the UK’s third national digital infrastructure platform.”

Faster Speeds and More Choice for Consumers

For British consumers, the Sky-CityFibre partnership promises faster broadband speeds, lower prices, and more choice in the market. CityFibre’s full-fiber network can deliver speeds up to 10 times faster than traditional copper lines.

“We switched to CityFibre last year and the difference is night and day,” said Sarah Hughes, a CityFibre customer in Milton Keynes. “Downloads that used to take an hour now finish in minutes. And we’re paying £15 less per month.”

Pressure Mounts on BT to Accelerate Upgrades

The loss of Sky ups the pressure on BT to speed up its own full-fiber rollout. BT’s Openreach division has pledged to connect 25 million premises by 2026, but progress has been slower than some hoped.

“For too long, BT has dragged its feet on fiber while relying on legacy copper networks,” said MP Lucy Powell. “They need to raise their game or risk being left behind as others build the digital infrastructure of the future.”

Looking Ahead: A Broadband Revolution?

As the UK races to upgrade its internet infrastructure, deals like this one could redraw the broadband landscape. If CityFibre delivers on its expansion plans, it would establish itself as a third major player alongside BT and Virgin Media.

Meanwhile, other “alt-nets” like Hyperoptic and Community Fibre are also connecting homes with full-fiber lines. The growing competition should benefit consumers and businesses alike.

“We’re on the cusp of a broadband revolution in Britain,” Barford said. “The old days of sluggish speeds and an entrenched monopoly are numbered. The future is full-fiber – and it’s coming fast.”