May 14, 2012 – Telstra is expected to shut down its aggressive IPTV ambitions and hand over its 300,000 plus T-Box customers to Foxtel, once the merger of Foxtel and Austar is completed, sources close to the deal have told The Register.
Speculation has been rife that Telstra’s burgeoning IPTV division would be the casualty of the AUD$1.9 billion merger and sources close to both operations claim that under Telstra and Foxtel’s one element of the many-layered agreement between the two includes a long-held understanding that should Telstra would abandon the pay-TV playing field should Foxtel take over its rival Austar. Telstra owns 50% of Foxtel.
Under the ACCC’s conditions for the Foxtel/Austar take over, Foxtel will be prevented from acquiring exclusive IPTV rights for a range of attractive television program and movie content.
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