Sky Gives Virgin Media £49m to Patch up its Groaning Broadband Network

By Gary Cutlack on at

Bizarre news from the cut-throat world of ISPs sees two deadly rivals teaming up for the betterment of the nation, with Sky asking Virgin Media for help shoring up its broadband and beating the capacity issues that have been dogging it for some time.

The deal sees Sky paying Virgin Media Business £49m to beef up its core network (not the last mile to your homes), with the main aim being to use Virgin's fibrous backbone to link Sky's unbundled exchanges with the Sky network, which should hopefully remove some of the bottlenecks that currently frustrate many Sky Broadband users.

Although this is a five-year deal, Virgin reckons Sky should start seeing the results of the work in boosting capacity by the end of 2013, when much of the core upgrade work ought to be complete. That can only be a good thing for users trapped on an oversubscribed section of Sky's network. [TNW]

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