Telecom Italia's TV deal with Sky to last five years
ROME (Reuters) - Telecom Italia's agreement to offer the full content of TV company Sky Italia on its networks will last five years, it said on Thursday, launching a service that will help boost broadband demand in Italy.
The agreement, first announced about one year ago, could make Telecom Italia's broadband offering more attractive and help Sky Italia reach more clients on top of those who already receive its programmes via satellite.
"The deal will last for five years but it can be renewed because it has strategic value," Telecom Italia Chief Executive Marco Patuano said at a news conference.
The quadruple play offer will be available to Telecom Italia customers with fibre-optic or ADSL connections at a promotional price from today.
As part of its three-year domestic investment plan, Telecom Italia has earmarked 2.9 billion euros (£2.01 billion) to build faster fixed and mobile networks and is looking to bring fibre-optic cables into the homes of Italy's 40 biggest cities.
Like other telecom companies, Telecom Italia is moving into the content market to find new sources of income as sales from its traditional voice services decline as competition from online firms increases.
Telecom Italia is also in talks with U.S. online movie streaming firm Netflix over a possible content deal as well as with Mediaset, the TV firm controlled by former Italian prime minister Silvio Berlusconi.
(This version refiled to add dropped words in fifth paragraph)
(Reporting by Alberto Sisto, writing by Danilo Masoni, editing by Vincent Baby)
