Freeserve joins NTL to offer broadband services

The internet service provider Freeserve yesterday joined forces with NTL to sell high-speed internet access over the troubled cable company's network.

The deal will enable Freeserve, which is now owned by France Telecom, to offer its broadband internet package to NTL's existing telecoms customers.

Under the terms of the deal, it will also be able to offer its Freeserve Broadband package to consumers willing to switch to the NTL telecoms service, away from their existing telecoms provider.

NTL hopes the move will entice consumers in NTL areas away from BT as the UK telecoms giant battles to keep hold of its customers by offering a raft of new services including broadband.

John Pluthero, Freeserve's chief executive, said: "This agreement gives Freeserve unrivalled options for the distribution and availability of Freeserve Broadband.

"Consumers in NTL's broadband cable franchises are now free to choose Freeserve Broadband as part of bundles with cable telephony and TV packages. Plus, we now have a way of capturing existing Freeserve customers in NTL broadband areas with our own fast-speed cable offer."

NTL said yesterday that the Freeserve Broadband product would be available later this year. Neither company would comment on the pricing of the product.

Freeserve will manage the sale and delivery of the NTL broadband equipment in high street stores such as Dixons. It will also provide both billing and technical support to customers of the Freeserve Broadband cable service.

Analysts at Dresdner Kleinwort Wasserstein said: "In addition to delivering broadband to NTL's existing customer base, today's announcement increases the probability of Freeserve using NTL's cable network to gain new broadband customers going forward."

Separately, NTL, which last week filed for Chapter 11 bankruptcy protection in the US, said it now had more than 200,000 broadband customers.