Poland’s dominant telephone operator Telekomunikacja Polska SA and television broadcaster TVN SA signed a 10-year cooperation agreement to cross-sell their products, which both firms expect to improve earnings.

As per the agreement, Poland’s largest Internet access provider TPSA will sell its broadband access services to subscribers of TVN’s direct-to-home pay-TV platform marketed as ‘n’.

TVN will provide television content for TPSA’s television and video-on-demand products. Both the companies will send a single bill for the services to its own customers, with revenue shared between TPSA and TVN through wholesale arrangements. The companies won’t create a separate company for the products they will offer together.

According to TPSA Chief Executive Maciej Witucki, rollout of the combined offer is expected in the first quarter of 2011.

Both companies alleged that over five years their cooperation will add about US$34.5 million to each company’s Ebitda.

According to Witucki, TPSA expects its TV subscriber base to grow quickly as a result of the deal with TVN, adding the telecoms company aims to have one million television subscribers over the mid-term from half a million now. The companies may prolong their cooperation beyond the 10-year agreement already signed.

According to Chief Executive Markus Tellenbach, TPSA expects to cut operating costs, phasing out its independent television service and replacing it with TVN content and freeing up capacity on two of its satellite transponders. TVN will also generate higher sales as a result of the agreement.