7 Oct 2013

Sky TV shares rise after Vodafone launches UFB TV service

7:27 am on 7 October 2013

Shares in Sky Network Television climbed 2% on Friday after the phone company, Vodafone, unveiled New Zealand's first full TV service using the new ultra fast broadband network.

Shares in Sky, which is one of Vodafone's partners in offering the new service, rose 12 cents to $6.18.

Vodafone, which is also partnering with TVNZ, MediaWorks and Maori TV, says the new service gives New Zealanders a real incentive to move to fibre.

Salt Funds Management managing director Paul Harrison says while the move has boosted Sky TV, it could put Telecom's shares under pressure.

He says it could put Telecom's shares under pressure if Vodafone is as aggressive in the ultrafast broadband market as it has been in the mobile market.

But Mr Harrison says Vodafone has included a service from Sky TV which has been positive for Sky TV.

Salt Funds Management manages a portfolio of shares worth $650 million.

Vodafone says nearly 200,000 homes in Wellington and Christchurch already have access to its own fibre network and that soon its customers throughout Auckland will be able to access the UFB service.

The service will also be available in Whangarei, Palmerston North and Dunedin with more areas being announced soon.

The company's TV digital recorder is free with its new 80 gigabyte UFB plans and for those choosing Vodafone TV with the Sky option.

Customers choosing the Freeview option can have the recorder free with 250 gigabyte UFB plans.