HomeChoice-Tiscali confirm marriage

Homechoice and Tiscali have put an end to speculation by announcing their official merger.

Homechoice's owners, Video Networks, will take a 11.5 per cent share in Tiscali's UK operations. The ISP will in return take a 100 per cent share of the video-on-demand (VoD) company. Video Networks will then be able boost its share of Tiscali to 20 per cent if it hits performance targets.

The combined unit will have around 1.3 million broadband customers, 45,000 of which subscribe to Homechoice's triple play - fixed line, internet access and IPTV - services.

Tiscali will now bring its marketing weight to bear on pushing IPTV services to its existing customer base and will also be selling its VoD services on a 'white label' basis. According to analysts the Diffusion Group there are expected to be 14 million households with IPTV by 2010.

Tiscali Group CEO Tommaso Pompei said the ISP will come out with its own triple play service before the end of the year.