Vodafone and BSkyB are allegedly discussing a deal that could challenge BT's pole position in the broadband market.
The talks surrounded the availability of Sky Sports and Sky Movies channels and the possibility of working together on a high-speed broadband offering, reported The Sunday Times.
The publication outlined how the necessity of the apparent talks demonstrated the extent of BT's dominance in the UK broadband market, adding that Vidafone and BSkyB would not build a new fibre network due to the prohibitive cost.
BT has spent £3bn on its broadband network, estimated to reach 90% of British homes by 2015, while it raked in about £1.2bn from the government after winning almost all contracts to roll out broadband services in rural areas.
The telecoms firm also spent £2bn on sport broadcast rights, outbidding Sky on the rights to play Champions League football.
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