MGt signs deal with internet TV group Inuk

TECHNOLOGY group MGt has agreed a multi-million-pound deal with Inuk Networks as broadband TV provider Inuk looks to expand beyond its 100,000-strong student base.

Kirkcaldy-based MGt said the five-year contract would see it provide a range of services, including key technical support, software and customer billing. The deal adds Inuk to a client base that already includes the likes of BSkyB, Setanta Sports and Virgin Media.

To date, Inuk has provided a "triple play" service encompassing video, voice and data to a mainly student population. It is now looking to reach out beyond halls of residences to the general UK populace and high-growth international markets such as the US.

The firm believes that its "Freewire TV" package, which offers a choice of Freeview and premium subscription channels, will appeal to the six million-plus households unable to receive high-quality digital TV by existing means. It could also provide a solution to homeowners unable to install a conventional aerial or satellite dish.

Inuk is backed by Sir Terry Matthews, the Welsh telecoms billionaire, who made his fortune with Canadian-based Mitel.

MGt commercial director Jamie Mackinlay said the value of the deal was dependent on how rapidly the service grew, but added it was "certainly in seven figures".

He said: "Inuk have more than 100,000 customers already and have aggressive plans to increase that number. Alongside business partner Cable & Wireless, they plan to implement the service to the general population.

"Their proposition is very exciting."

Marcus Liassides, chief executive of Inuk, added: "We approached MGt because of its IPTV [internet protocol television] and broadband market expertise, along with its excellent history of launching and managing customers over a number of platforms."

Founded in 1998, MGt has a turnover of more than 21 million and employs 1,700 technical and customer support staff.

The company has supported the launch of more than 60 TV channels and claims to be the UK's "leading expert on pay-TV and multi-platform delivery".

"We have a very sophisticated implementation technology that we develop ourselves," Mackinlay said.

Freewire TV was first deployed to students over the JANET high-speed network, which connects Britain's higher education institutions.

Inuk is also pitching a customised version of Freewire to the wholesale broadband market.