BSkyB snaps up O2 broadband business

British alternative fixed line voice and broadband provider BSkyB has agreed to purchase the fixed line business of Telefonica’s UK subsidiary O2 for up to GBP200 million (USD303.4 million) Reuters reports. BSkyB will pay GBP180 million to take over roughly 500,000 subscribers from its Spanish-backed rival, with a further payment of up to GBP20 million dependent on meeting certain milestones regarding migrating customers. The sale will allow O2 to focus on the mobile market, whilst BSkyB noted that the deal would put the telco ahead of rival Virgin Media as the nation’s second largest broadband provider behind BT Group. The company’s CEO Jeremy Darroch added: ‘Sky has been the UK’s fastest-growing broadband and telephony provider since we entered the market six years ago. The acquisition of Telefonica UK’s [O2’s] consumer broadband and fixed-line telephony business will help us accelerate this growth.’