Tiscali and Video Networks International agreed to integrate their UK market operations. Under the deal, Video Networks International Ltd (VNIL) would contribute 100% of their UK operations – Video Networks Ltd (VNL) – into Tiscali UK Ltd, fully owned subsidiary of Tiscali SpA, in exchange for an interest in Tiscali UK. As a result, Tiscali SpA would control 88.5% of Tiscali UK, while VNIL would own 11.5%.
Following this integration, Tiscali UK will immediately have more than 1.3 million DSL customers, of which 350,000 customers are taking voice and broadband, over 45,000 will be IPTV subscribers, and an unbundled local loop (“ULL”) network covering over 300 BT exchanges with in excess of 220,000 ULL customers.
Video Networks currently provides TV and video services under its Homechoice brand, to its broadband subscriber base using its state of the art IPTV platform. Homechoice has 45,000 customers, mostly taking triple play (broadband, telephone and TV) which pay on average £500 a year. VNL has an annualized turnover of approximately £18 million.
Tiscali UK will market these IPTV services. Its strategy will also be to enhance its current wholesale DSL product by adding IPTV to the proposition and syndicating this on a ‘white label’ basis.
http://www.tiscali.co.ukhttp://www.videonetworks.com
- Video Networks is headed by Roger Lynch, chairman and CEO, who previously was president and CEO of Chello Broadband, Europe’s largest broadband ISP at the time.
