Tiscali have officially merged with Homechoice, and now the full details are being released.

Homechoice will contribute its British operations in exchange for 11.5 percent of Tiscali UK, and may increase the stake to 20 percent if profit targets are met. This will allow Tiscali to become a "triple play operator" in the UK offering broadband, telephone and television to its clients as well offering all of its clients Homechoice's library of movies, music videos and pay TV channels.

After three years, Tiscali will have the right to buy Homechoice outright, and Homechoice will have the right to sell its stake in Tiscali UK.

This could be good news for Homechoice who have struggled to make a market impression so far, its service is available to about 2.4 million households, mostly in London, but it only has 45,000 subscribers.