The imminent launch of a Sky (LON:SKY) mobile offering will put more pressure on BT (LON:BT.A) says Deutsche Bank, which has a ‘sell’ rating on the telecoms giant.
Sky may launch as early as next week and a bundle discount of more than BT’s £5 could trigger price deflation of the type seen in other parts of Europe.
Elsewhere, a refreshed TalKTalk and a keenly priced Vodafone, may also weigh upon BT’s broadband arm.
Uncertainty over Ofcom’s review of wholesale arm Openreach and how it is to be governed is another issue.
There should be a progress report from the regulator before Christmas and some clarity would be welcome says Deutsche Bank.
BT shares have been poor performers this year, but Deutsche’s price target is 345p pointing to a touch more downside yet from the current price of 354p.