Sky Mobile 4G Service Becomes Available to Everybody in the UK

Sky (Sky Broadband) has this week confirmed that their new Sky Mobile service is now available for anybody to buy, after initially only being made available to Sky’s existing customers and those who pre-registered. However the new service might not seem terribly attractive unless you also take Sky TV.

The new service, which was officially unveiled in November 2016 (full details), is powered by a Mobile Virtual Network Operator (MVNO) agreement with O2 (Telefonica UK) and charges £10 per month for 1GB of data, £15 for 3GB or £20 for 5GB. On the surface this doesn’t seem very attractive, but Sky’s strategy is all about customer retention and as such you have to be an existing Sky TV subscriber in order to extract the most benefit.

Sky Mobile’s Key Features

· Roll – Customers can roll over unused data into their online ‘piggybank’ each month (in 1GB increments), to use whenever they need for up to 3 years. Some rivals do this, but the data roll-over usually expires quite quickly.

· Mix – Customers can create a plan that’s right for them, which they can change every month. Just to clarify this, Sky Mobile plans are still 12 month contracts, but customers are free to change their “Mix” of data, calls and texts every month.

· Save – Sky TV customers don’t have to pay for unlimited UK calls or texts with any Sky Mobile data plan. Each household will also be able to register up to 5 SIMs, which Sky claims could generate an annual saving of up to £600 a year on their Sky Mobile bill. In addition, Sky+ customers choosing to take Sky Mobile will receive Sky Go Extra for free, saving £60 a year.

· Sync – Sky TV customers can create their personal playlists of favourite shows, synced from their Sky box at home, to watch wherever they are. This mobile entertainment service is available for Sky+ customers at launch, with the functionality coming for customers with a Sky Q box next year.

The main weakness of Sky’s approach, apart from the obvious one of being limited in scope to enticing Sky TV subscribers (for anybody else it may simply look too expensive), is that their top data allowance is only 5GB and those who already need more monthly data for their Mobile Broadband use won’t enjoy such a restriction.

By comparison Three UK will give you a 12GB plan with 200 mins and unlimited texts for £19 per month and EE also have a 12GB plan for £19.99, which includes unlimited minutes and texts. Against that Sky’s offer struggles and a bigger data allowance (maybe double what they offer today) would certainly help to even the playing field, particularly with Sky’s data roll over advantage.

We’d also say that Sky shouldn’t forget that they have a lot of customers who only take their fixed line broadband and phone. Admittedly TV might be Sky’s bread and butter, but excluding the others from their ‘Save’ benefits will hinder uptake and ignores the fact that Mobile is a communication service, just like broadband and phone. The three comms services fit well together.

Stephen van Rooyen, Sky’s UK and Ireland Chief Executive, said:

“We’re excited that Sky Mobile goes on nationwide sale today, which is great news for UK consumers. Right now mobile contracts are inflexible and confusing and we all know people are buying more data than they need to avoid those extra charges.

With Sky Mobile we’ve provided the solution, offering flexibility and great value so our customers’ unused data will be theirs to keep and they can create a plan that’s right for them, month to month. And there’s even more benefits for Sky TV customers with free UK calls and texts, plus the ability to sync with their Sky+ box.”

Sky will soon publish a new set of financial results, but it’s probably too soon to expect much information on the early uptake of Sky Mobile. Later in 2017, Sky will also aim to expand their offering to include the best handsets from Apple and Samsung, as well as from other providers to be confirmed nearer the time.