Sky has today announced plans to launch a new mobile service in 2016, partnering up with O2 for the mobile virtual network operator (MVNO) venture. The deal will enable Sky to offer 2G, 3G and 4G services to its customer base, placing the company in a strengthened position against rivals.

It's an interesting move, given that BT is purchasing EE for £12.5 billion, which provides services to Virgin Media, and Three owner Hutchison Whampoa is set to acquire Telefonica's O2. Sky has decided to act now with serious changes on the horizon for the UK mobile market, and will be teaming up with O2 (and potentially Three).

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The premium TV provider will offer voice and data packages to customers through the wholesale agreement with O2, making 2015 a messy year for the industry, ramping up competition in the already-crowded UK market. O2 already offers similar services to other brands, including Tesco Mobile.

Source: Reuters