Sky ties up deal with Telstra

By GEOFF SENESCALL

Pay television operator Sky TV has mirrored a deal with Telecom by signing a reselling agreement with Telstra Saturn.

While the arrangement completed with Telecom in April was non-exclusive, this is the first of Telecom's competitors to do a deal with Sky.

Sky is also believed to have held talks with Vodafone and Clear. But all Sky's chief operating officer, John Fellet, would say was that it was willing to talk with anyone.

Sky's latest move comes despite Telecom buying a 10 per cent shareholding in the pay television operator's main shareholder, INL.

At the time that it bought the holding, analysts said the reason was to get close to Sky.

Telecom declined to comment on Sky's actions.

The decision by Telstra Saturn to resell Sky's basic digital pay-TV services is in spite of having its own television offering. But Saturn's Sean Wayne said Sky's programming would complement his company's existing offering.

Telstra Saturn is a joint venture formed this year between Telstra and the New Zealand unit of Austar United Communications.

The company runs a telecommunications network in Wellington and has began awarding contracts for a network roll-out in Christchurch.

ABN AMRO analyst Jeremy Simpson said the deal was positive for Sky.

"It improves its distribution at no extra cost. It also strengthens Sky's position as the number one pay-television operator in New Zealand."