NTL and Telewest move closer with <BR>planned broadband TV service

LONDON - UK cable companies NTL and Telewest have moved yet closer together with the news that they have signed an agreement to jointly produce a digital broadband TV service, due to launch next year.

The move will fuel speculation that they could complete a fully operational merger in the near future. However, their combined debt levels -- NTL's is £11.6bn and Telewest's stands at £5.2bn according to Merrill Lynch estimates -- and differences in their accounting structures currently prevent them from merging.



The deal will see the development of TV programmes with links to enhanced content such as additional text, audio or video, giving viewers access to services such as shopping, betting, games, interactive advertising and additional programme information.



The broadband connection will offer customers high-speed access to the enhanced content. The connection will be on constantly and will not tie up the standard telephone line when in use.



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Claire Billings, recommends

NTL

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