Sky Network Television, New Zealand's dominant pay television operator, will no longer resell its service through Telecom, the nation's largest phone company.

The companies have agreed to end the resale agreement, which saw Sky's television service sold in a bundle with Telecom's phone services, the Auckland-based TV company said in a statement. Telecom customers who take the TV services will be migrated back to Sky by the end of May, the company said.

No reason was given for the end of the agreement. The companies remain open to working together in the future, Sky said.

Telecom spokesman Richard Llewellyn said it had been a mutual decision to end the relationship with Sky. He described the offering as "a legacy product" that was not heavily promoted and had not attracted any new customers since 2008.


Without giving out any actual numbers, Llewellyn said the number of people using the service was "a very small proportion" of Telecom's total customer base.

He said customers would be switched over automatically - and simply start receiving a separate Sky TV bill instead of paying through their Telecom bill.

Some people may have to make changes to their payment arrangements though, he said.

Last year, Telecom entered into a distribution deal with web-based broadcaster Coliseum Sports Media to play the English Premier League football.

Sky shares fell 0.5 percent to $5.74 in trading yesterday, while Telecom stock slipped 0.4 percent to $2.335.

with NZ Herald