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TVN and TPSA join forces for pay-TV and triple-play

Polish broadcaster TVN has signed a long-term agreement with France Telecom-owned incumbent telco Telekomunikacja Polska (TPSA) whereby the latter will provide broadband and telecom services to the subscribers of TVN’s ‘n’ pay-TV platform and TVN will provide TV channels for TPSA.

TVN will become the main content supplier to TPSA, providing content for its basic TV package and the ‘n’ service for TPSA’s pay-TV packages. The latter will be harmonised with ‘n’’s content packaging structure over time.

The pair hope to benefit from the enhanced attraction of joint multi-play offerings, with the ability to sell their services to each other’s customer bases, as well as from cost synergies from joint technical, marketing and sales activities.

Markus Tellenbach, CEO of TVN Group, said: “We recognise access to high speed broadband internet services are the next mega-trend in Poland and we are very pleased to enter into this co-operation with TP, the leading broadband supplier in Poland.”

Tellenbach said that the ability to sell its services to TPSA’s customer base would offer a significant measurable benefit to TVN. “This will further strengthen TVN Group’s competitive position in the Polish pay-TV market as we deepen our customer relationships by providing easy access to the widest range of high quality communication services, through bundled multi-play product offers,” he said. “This, combined with the up-selling potential that ‘n’ will have on TP Group customer base, increased market presence through TP Group’s points of sales as well as opportunity to further grow ‘n’ premium Pay-TV customer base, creates additional value for our business.”

Maciej Witucki, CEO of TP Group, said: “This agreement is an important step in strengthening our multi-play offering. We are pleased to supply our customers with superior content from TVN Group, both its own channels and a selection of third-party productions.” Witucki has also reportedly said that the pair may extend their co-operation beyond the 10-year agreement, and that TPSA aims to expand its TV base from half a million to one million in the medium term as a result of the deal.

The two companies estimate the positive impact of the deal on their EBITDA to amount to approximately PLN100m (€26m) over a five-year horizon.

The agreement also extends to technology, with the pair planning to harmonise their technology platforms and customer service operations over time.

Analysts believe the deal will be beneficial to TVN in particular, allowing it to gain access to TPSA’s two million internet customers, seven million fixed-line clients and 14m mobile clients.