Telecom, Sky have different visions

By PAUL PANCKHURST

It is the topic that makes Theresa Gattung sigh: Telecom's negotiations with Sky Television for entertainment content to attract customers to high-speed internet services.

In an interview after this week's Telecom profit announcement, Gattung was asked how quickly Telecom might do a deal with Sky.

She sighed deeply.

"Well, Sky have a very successful current business model," said the Telecom chief executive.

"And it's very hard - reasonable people can come to different conclusions about outcomes and the path to take to get there."

Put another way, it seems the two organisations have different visions of the converging future of telecommunications and media.

Gattung said Telecom was "looking to do more than just another resale deal".

Movie and television programmes were an important part of the future of DSL (high-speed internet).

In a potential deal, Sky would contribute content, and Telecom would pay for the technology to deliver it, said Gattung.

But, as she pointed out, Sky already has its own game plan.

Sky chief executive John Fellet later said the two companies had been talking on the topic "for a good year, on and off".

Telecom is a shareholder in Sky.

Fellet said: "We want to do a deal, it's just got to be fair."

Gattung said talks were "not stalemated. Because we both want to try to find a way forward".

"We can both see that it makes sense - but it's like, what are you prepared to give up to try and find a way forward? Also, do you trust each other enough to try to come to a shared view that might mean giving something up?"

Fellet said Sky was on record as "wanting to be everybody's pay-TV partner" - it wanted multiple distribution channels.

Gattung would not put a deadline on the Sky talks.