Vodafone and BSkyB are to work together to offer television content through mobile telephone handsets, the two companies announced today.

Subscribers to Vodafone’s third-generation (3G) telecoms service will be able to watch live news and sports from the satellite broadcaster.

Mobile operators O2 and Orange have already launched trial mobile TV services in the UK and France, but the Vodafone-Sky package is the most advanced offering yet in an area viewed by television and mobile executives as ripe for expansion.

Hollywood studios and television producers are also tuning into the idea and have begun to pilot "mobisodes" specially developed for small handset screens. 

Today's deal will also see Sky move into a new market as it strives to move beyond its traditional pay-tv business.

The company, which is 37.2 per cent owned by News Corporation, the parent company of Times Online, recently acquired Easynet, the internet service provider, for £211 million in a move that allows it to target the so called "triple-play" market, which combines TV, internet and telephone services.

From tomorrow, Vodafone's 250,000 3G subscribers in Britain will have free access to Sky Mobile TV until January 31. When the free trial ends it will cost £5 a month for each of two packages.

One package offers mainly news and factual programming, while the other will include entertainment shows, including movies and cartoons. A total of 19 channels will be offered.

BSkyB also said it was giving all "Vodafone live! with 3G" customers the chance to watch Sky Sports’ live coverage of the England cricket team’s winter tour to Pakistan.

"This is a highly significant day for both the mobile and television industries," Tim Yates, chief marketing officer for Vodafone UK, said.

"Sky and Vodafone have come together to provide the country’s first commercially available mobile TV service available on such a wide range of handsets." he added.

BSkyB’s chief operating Officer Richard Freudenstein said:"Sky wants to give customers the flexibility to access our services in the way that they choose and Vodafone is an ideal partner to help make this happen."

"This is an innovative service that complements our existing pay-TV activities, extends the reach of Sky content and delivers an additional stream of revenue."

BSkyB shares rose 0.5 per cent at 511.5p in early afternoon deals in London following the announcement, while Vodafone was up 2.44 per cent at 147p.

However, dealers said that the rise in shares in Vodafone was driven mainly by a friendly bid by Spanish telecommunications group Telefonica of £17.7 billion in cash for British telecoms group 02.

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