Amsterdam, Nov. 26 (Reuters): Spain’s number one telecom operator, Telefonica on Tuesday signed a deal with Europe’s biggest consumer electronics group Philips to bring internet to home HiFi and TV sets.
The link-up, initially for two years, would extend Telefonica’s current offering of broadband internet access for personal computers. With Philips, it aims to offer multimedia services, digital television and games to a range of connected electronic devices in the home.
The two companies will first launch products and services in the Spanish market, using Telefonica’s Asynchronous Digital Subscriber Line (ADSL) broadband access service, then they plan to enter the Latin American market later.
“Telecom operators want to show there’s more value in broadband internet access,” said Philips spokesman Jeremy Cohen, adding that Philips will start offering a HiFi set that can play songs downloaded or streaming from the internet.
It is one of the first deals between a consumer electronics maker and a telecom carrier.
ADSL service, using a supercharged phone cable which provides internet access roughly 10 to 15 times faster than a normal phone line, typically sells for around 50 euros a month.