Juan Mortyme
07-04-2005, 09:05 PM
Source:
http://www.smh.com.au/news/Business/Optus-to-sell-Foxtel-Digital-services/2005/04/07/1112815665578.html
Optus to sell Foxtel Digital service
April 7, 2005
Optus pay TV customers will have a digital service after Optus signed a deal
to start selling the Foxtel Digital service.
Foxtel's board announced the new deal, on the same day Foxtel's
shareholders - Telstra, Publishing & Broadcasting Ltd and News Ltd - agreed
on a revised costs sharing arrangement for Foxtel.
An Optus spokeswoman said the company would spend an estimated $30 million
in the next two to three years to set up a digital service, which will
include replacing existing analogue "set top boxes" with digital receivers
for its roughly 160,000 customers.
Optus has already digitised its cable but Optus pay TV customers currently
receive an analogue service.
Chairman of Foxtel Bruce Akhurst said the deal was "commercially attractive
and equitable for Optus and Foxtel".
Optus chief executive Paul O'Sullivan said digital television would
strengthen Optus' telephony and internet offerings.
"We now look forward to working closely with Foxtel during the
implementation phase and to making product announcements once these plans
are complete," Mr O'Sullivan said.
Telstra spokesman Michael Grealy said the deal was struck after an agreement
was reached for Optus to fund the rollout of digital set-top boxes, rather
than have Foxtel meet the cost.
"Telstra is very happy that that has been achieved that way," he said.
The deal also gives Optus access to customers in areas where it does not
have cable because it will act as an agent for Foxtel's satellite service,
however an Optus spokeswoman said it would not be moving into territory
covered by regional pay TV operator Austar.
Optus expects to start rolling out its digital service at the end of the
year.
Foxtel will begin a new marketing push for its digital service this month
after receiving a strong response from customers since digital's
introduction in 2004.
The new agreement between Foxtel and Optus is an extension of a content
supply agreement signed between the two in 2002.
Mr Grealy also said that Telstra's share of costs in running Foxtel would be
reduced after a revised agreement was reached with PBL and News Ltd.
"The other Foxtel shareholders have agreed to more equitable investment in
the Foxtel business - it means (Telstra) will be making less of a
contribution," he said.
Telstra owns 50 per cent of the business while its partners have 25 per cent
each and Mr Grealy said Telstra's share of costs would be reduced to be
closer to its share of the company.
© 2005 AAP
http://www.smh.com.au/news/Business/Optus-to-sell-Foxtel-Digital-services/2005/04/07/1112815665578.html
Optus to sell Foxtel Digital service
April 7, 2005
Optus pay TV customers will have a digital service after Optus signed a deal
to start selling the Foxtel Digital service.
Foxtel's board announced the new deal, on the same day Foxtel's
shareholders - Telstra, Publishing & Broadcasting Ltd and News Ltd - agreed
on a revised costs sharing arrangement for Foxtel.
An Optus spokeswoman said the company would spend an estimated $30 million
in the next two to three years to set up a digital service, which will
include replacing existing analogue "set top boxes" with digital receivers
for its roughly 160,000 customers.
Optus has already digitised its cable but Optus pay TV customers currently
receive an analogue service.
Chairman of Foxtel Bruce Akhurst said the deal was "commercially attractive
and equitable for Optus and Foxtel".
Optus chief executive Paul O'Sullivan said digital television would
strengthen Optus' telephony and internet offerings.
"We now look forward to working closely with Foxtel during the
implementation phase and to making product announcements once these plans
are complete," Mr O'Sullivan said.
Telstra spokesman Michael Grealy said the deal was struck after an agreement
was reached for Optus to fund the rollout of digital set-top boxes, rather
than have Foxtel meet the cost.
"Telstra is very happy that that has been achieved that way," he said.
The deal also gives Optus access to customers in areas where it does not
have cable because it will act as an agent for Foxtel's satellite service,
however an Optus spokeswoman said it would not be moving into territory
covered by regional pay TV operator Austar.
Optus expects to start rolling out its digital service at the end of the
year.
Foxtel will begin a new marketing push for its digital service this month
after receiving a strong response from customers since digital's
introduction in 2004.
The new agreement between Foxtel and Optus is an extension of a content
supply agreement signed between the two in 2002.
Mr Grealy also said that Telstra's share of costs in running Foxtel would be
reduced after a revised agreement was reached with PBL and News Ltd.
"The other Foxtel shareholders have agreed to more equitable investment in
the Foxtel business - it means (Telstra) will be making less of a
contribution," he said.
Telstra owns 50 per cent of the business while its partners have 25 per cent
each and Mr Grealy said Telstra's share of costs would be reduced to be
closer to its share of the company.
© 2005 AAP