Tiscali To Launch Triple Play Services After Buying Homechoice

Tiscali, the Italian internet service provider, is set to offer triple play services in the UK, after the company merged its British operations with Homechoice owners, Video Networks.

The third largest broadband operator in the UK will make television, broadband and telephone services available, following the sale of Homechoice to Tiscali for a reported £60 million, in return for an 11.5% stake in the Italian-based company. This share could rise to 20%.

The deal means that Microsoft founder, Chris Larson, is now a major shareholder in the internet firm. He was among the investors who rescued Video Networks when it was on the verge of going bust three years ago.

Tiscali will now be able to offer 95 channels of television and video-on-demand services, which Homechoice piloted in the 1990s via upgraded BT telephone lines.

The launch of the triple play offering is expected to be before the end of the year, followed by the roll-out of a similar service in Italy and other countries.

Mary Turner, Tiscali UK chief executive, said: “The prime reason for doing this deal is that we believe more and more customers are looking for bundled services,” she said.

Last week, Tiscali was reported as being the front-runner to buy the struggling service, after Homechoice was approached by various online and mobile companies (see Mobile And Online Companies Bid For Homechoice).

Homechoice: 0800 072 4454 www.homechoice.co.uk