Digital TV operator On Digital may offer low cost telephone services alongside its television channels.
The UK digital terrestrial operator, which is owned by two independent TV broadcasters, is in talks with cable companies with a view to introducing its phone services next year.
The main aim is to be as competitive as possible with chief rival BSkyB, which offers a 140-channel digital TV service over its satellite network. From mid-November, On Digital will provide 30 channels, transmitting via standard TV aerials.
The most likely cable partner for On Digital will be NTL, which built the transmission network On uses and has a national phone infrastructure. Another possible partner would be Cable and Wireless Communications. BSkyB is trialling packages of TV and phone services with BT.
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