Sky Rumoured To Buy The Cloud

Sky Broadband is poised to buy out wireless hotspot provider The Cloud in a move that could put the broadcaster in a position to compete against BT’s Openzone service, reports have revealed.

BSkyB is expected to announce the deal later this week to offer 2.8 million Sky-broadband subscribers free Wi-Fi access via The Cloud, according to The Sunday Times, whose owner is Sky’s parent firm – News Corporation.

Speculations surround the broadcaster’s attempt to enter the UK Wi-Fi hotspot arena and go head-to-head with BT’s free Wi-Fi access deal for its home broadband customers.

The Cloud

The Cloud is a public Wi-Fi provider, with more than 22,000 access points across Europe.

It provides an average download speed of more than 3.5Mbps, offering consumer services at a cost of £6.95 per month for unlimited Internet access.

Launched in 2003, the network operator claimed it has connected three million laptops and smartphones to its network every month. It also has deals with Pret a Manger, McDonalds and Marriott hotels.

Wi-Fi hotspot wars

Apart from BT, BSkyB could also be competing with Virgin Media, which announced plans to launch a network of Wi-Fi hotspots across Britain in November, with data transfer speeds of up to 5Mbps.

Once rolled out, Virgin’s broadband and mobile subscribers are likely to enjoy the Wi-Fi service free of charge. Other consumers will have to sign up for a pay-as-you-go or subscription deal.

Like BT, Virgin’s hotspots will concentrate on city centres where there is sufficient demand.

“This isn’t about building broad coverage,” said Baughan in an interview with The Daily Telegraph,” it’s about giving you fast, predictable, access where you need it”.