LONDON, Jan 19 (Reuters) - Vodafone and BSkyB have held high-level discussions on how to curb BT's growing reach over the broadband market, the Sunday Timesreported, citing senior sources.
The newspaper said the talks illustrate the extent to whichthe once-staid telecoms operator has gained on its competitorsby betting on fibre broadband and top flight football.
According to its sources, the newspaper said BSkyB, theRupert Murdoch-owned pay-TV group, and Vodafone discussedstriking deals on Sky's sports and movie channels andcollaborating on a high-speed broadband service.
However, the sources said, it was unlikely that the twofirms would build a nationwide fibre network because it wouldcost several billion pounds.
Vodafone declined to comment while Sky was not immediatelyavailable to comment.
BT is spending more than 3 billion pounds ($4.93 billion) ona high-speed fibre-optic network that should reach 90 percent ofhomes by next year and a further 2 billion pounds on sportsbroadcast rights, the newspaper said.
Shares in BSkyB lost more than 1.5 billion pounds of theirvalue in November after BT won the rights auction to showChampions League soccer.