News Corp.(NWS) satellite unit Sky Italia and broadband operator Fastweb SpA (FWB.MI) said Monday they have agreed to combine Sky's satellite TV offer with Fastweb's broadband internet and landline services in a deal aimed at boosting customer numbers in Italy.

Under the terms of the new offer, named "Home Pack", consumers will be able to choose entertainment, connectivity and telephony with a single bill that combines the Sky Italia subscription with Fastweb's broadband services.

In a joint statement, Sky Italia and Fastweb said the new offer is better priced than purchasing the single services separately and is aimed at winning new customers in the increasingly competitive Italian market.

"The agreement has a strategic and commercial value, because it enables both companies to offer high-quality services at an affordable price, and it aims at increasing the number of subscribers," they said.

The agreement represents an evolution of a previous contract, signed in 2006, under which Sky television offer was distributed on Fastweb's Iptv (Internet Protocol TV) network.

The new "Home Pack" offer will be available from Feb. 14.

Sky Italia, News Corp.'s Italian satellite unit, has been battling with prime minister Silvio Berlusconi's Mediaset SpA (MS.MI) for dominance in the country's promising pay-TV market.

News Corp. owns Dow Jones & Co., publisher of this newswire and the Wall Street Journal.

Fastweb's parent company Swisscom (SCMN.VX) last year agreed to buy the remaining shares of Fastweb it didn't own to gain full control of the Italian operator.

-By Giada Zampano, Dow Jones Newswires, +39 06 69766925; giada.zampano@dowjones.com
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