The Times has reported that BSkyB and Tiscali are close to signing a new TV distribution deal, which would allow Sky's basic channels (SkyOne, SkyNews24 etc.) to be viewed by Tiscali's broadband customers.

The move would likely impact Virgin Media hardest of all, which lost Sky's basic channels after failing to reach an agreement with the satellite TV giant. It's believed that Tiscali were able to make a bigger offer than Virgin's last ditch attempt, placing Sky in an even stronger position.

Tiscali has also been sniffing around rival UK ISP Pipex, which has so far been unable to find a buyer.