Sky Italia is planning to launch in the summer of 2019 services over the Open Fiber FTTH network being rolled out by utilities group Enel and the bank CDP. This is another example of support for FTTH, open networks and Sky's strategy of expanding distribution. It's unclear yet whether Sky plans a triple-play offer in addition to TV services, but it seems likely. At the same time, Sky announced a distribution agreement with Mediaset for access to the DTT platform.
Enel launched in 2016 its plan for an open FTTH network. It's an open, wholesale network that will cover 224 cities. CDP has joined as a shareholder, and Open Fiber acquired the smaller operator Metroweb, helping expand the plan to 271 cities covered. Service providers on the network include Tiscali, Go Internet, Wind Tre, Vodafone Italia and now also Sky. Competitors are TIM (Telecom Italia) and FastWeb (Swisscom).
The cooperation with Mediaset gives Sky access to the digital terrestrial TV network. This means Sky TV service is available on nearly every possible form of infrastructure.
Open Fiber: first successful FTTH network?
Converting telecom networks to fibre is taking a number of different forms across Europe. A growing number of incumbents are being converted to full fibre, such as Proximus, Deutsche Telekom and BT. However, in all these markets, as well as the Netherlands, coverage is far from national. Other countries such as Spain and France have benefited from effective regulation encouraging cooperation between the incumbent and other players to expand FTTH coverage. Spain towers above the rest with an FTTH coverage of 76 percent. In Italy, Enel is working towards achieving the same, with an open and completely new network. On paper, this is the ideal network: no destruction of capital as only one network is needed, an attractive investment vehicle for pension funds and a level playing field for all service providers on the network.
Sky on Open Fiber: triple-play too?
This is an important step for Sky, for two reasons: First, it adds a new distribution platform for its TV services. In addition to satellite and bundling with broadband operators (FastWeb and TIM), it adds the DVB-T network with Mediaset and IPTV over the Open Fiber network. Sky will use the FTTH network to deliver its Sky Q platform, an IP service delivered over a box and apps, direct to consumers.
Second, Sky Italia, the same as in the UK, will be able to extend its presence in the telecom market by offering a triple-play over the Open Fiber network. This will turn Sky Italia, promarily a media company, into a telecom company. It's still unclear whether Sky will go this far, but it appears likely. When rumours first emerged last year of Sky pursuing this strategy, the assumption was that Sky Italia would operate as a broadband provider.
Sky is primarily a TV provider. Its portfolio of original productions is growing and it focuses heavily on sport. The aim is to develop maximum distribution of its content: satellite, IPTV, DVB-T and OTT (Sky Go, Sky Kids, Sky NOW), which in recent yeas has also expanded Sky's footprint (UK/Ireland, Germany/Austria and Italy) to new countries such as Spain and Switzerland.
