22 Feb 2010

Sky TV mulls expansion into mobile phone industry

7:09 am on 22 February 2010

SKY TV is considering using its old UHF analogue network to stream content to mobile phones.

Sky says it is on track to move all its customers off its old network by 10 March.

Vodaphone customers can currently subscribe to eight of Sky's channels on their mobile phones, but Sky's chief executive John Fellet admits the quality hasn't met expectations.

He says the right handsets coupled with better technology could allow its customers to eventually view every one of its channels on their mobile phones.

But Mr Fellet says Vodaphone, Telstra, Telecom and 2degrees would need to agree to import handsets which have a chipset inside them.

Telecommunications analyst Paul Budde says the mobile data market, which includes TV and games, is actually shrinking, as people opt for free applications on smart phones instead of paying for content.

Rob Mercer, head of research at brokerage Forysth Barr, also doubts it would be a big earner for Sky.