RE: For Balance…20 Aug 2024 20:00
Aus3009 is always quick in extrapolating the impact on BT whenever there is a "bit" of negative news on BT. Today's drop is usual panic from the market for a bit of news. No where Sky or CF is saying that SKY will move all of its business to CF from BT. The partnership is only to offer Sky broadband to the people who are on CF network. It is similar to what SKY does in our area where fibre network is from an independent provider and Sky offers its broadband through that provider. There is no BT fibre. Virgin is still laying cables.
Sky will not sever relation with BT. Moreover CF seems to have lot of issues as mentioned by HL analyst! So no way Sky would move away from BT which is an established business since 20yrs! And trusted by businesses and big investors like Bharati Airtel and Mexican investor!
Aus3008 see below comments from HL analyst -
At present, BT hosts all of Sky's broadband customers, approximately 5.7m, on its Openreach network, as reported by City AM.
"The BT impact is through its Openreach business, which has Sky as its biggest external partner," explained Matt Britzman, senior equity analyst at Hargreaves Lansdown.
"There are genuine concerns about its reliance on a single customer, but a deal with Cityfibre is unlikely to have a major impact on the current relationship."
Britzman further commented: "Cityfibre is a struggling business, desperate to show its lenders that it has something tangible in the works, it's also more focused on rural areas where the likes of Openreach aren't building out fibre networks so there's likely limited cannibalisation of Openreach's existing business with Sky."
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