By KARYN SCHERER
Pay-television operator Sky looks like beating TVNZ in the race to bring the Internet to home television sets.
The Rupert Murdoch-controlled company intends introducing an e-mail service within the next six months, but only for satellite service customers.
Subscribers prepared to pay $40 or $50 for a wireless keyboard will be offered the service for just a few dollars a month, or possibly even for free.
The system bypasses the need for a computer.
The only catch is that advertisers and broadcasters who use Sky's satellite service, including TV3, TV4, Prime and Trackside, are also likely to use it as a marketing tool.
Sky TV's chief executive, Nate Smith, said yesterday that customers would need a phone line near their TV to connect to the modem.
Around 80 per cent of digital customers had phone jacks installed nearby. The remainder either did not want the connection or it wasn't physically possible. "We'll just solve those on a case-by-case basis."
Sky has yet to strike a deal with an Internet service provider, but Mr Smith said he hoped it could yet be free. "At the worst case, it's going to be a nominal fee."
He played down the possibility that Sky would sell customer e-mail addresses to advertisers, saying only those who wanted to receive extra information would be targeted.
However, broadcasters might be keen to use the new service.
"If TV3 wanted to send a message saying watch this show tonight, as long as we're not breaking too many proprietary issues that might be a nice leg-up for them."
The move is part of a push by Sky to persuade more customers to sign up to its digital service.
It is at this stage ruling out introducing full Internet access and is unwilling to introduce more lucrative interactive services such as pay-per-view movies and sports betting until there are more customers over which to spread the cost.
Sky confirmed last month that more than 100,000 customers now subscribe to the digital service.
Yesterday's announcement that it is creating a new division to oversee interactive services comes just six weeks after the Government put TVNZ's plans for a similar service on hold.
TVNZ had planned to link with British-based cable giant NTL to offer a wide array of digital services, including Internet access.
While the Government has not ruled out allowing TVNZ to proceed with its digital plans, it has questioned their scale and cost.
TVNZ spokesman Liam Jeory said yesterday that the state-owned broadcaster was awaiting the outcome of the Government's review of the broadcasting sector before it knew what kind of service it was likely to be able to offer.
Sky offers TV set e-mail service
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