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BSkyB strikes broadband backhaul deal with Virgin Media

BSkyB has struck a £49 million (€57 million) deal with Virgin Media’s business services unit whereby the latter will provide backhaul network capacity for its broadband service.

Virgin Media will connect about a third of Sky’s unbundled local exchanges with Sky’s own wholly-owned broadband network.

The five-year contract will see the core of the network in place by the end of this year, with Virgin Media Business’s high-capacity services product delivering speeds of up 10Gbps for each connection.