Sky Italia and Eutelsat signed a strategic multi-transponder agreement that will provide Sky Italia with transponder capacity for the next 20 years, the companies announced Sept. 15.

The agreement renews Sky TV’s 16 existing leases and provides new capacity on 10 transponders aboard Eutelsat’s Hot Bird satellite. The new capacity will be used to enhance Sky Italia’s direct-to-home service, including the launch of high-definition TV service by mid-2006.

“We are pleased to be extending our association with Eutelsat, which will provide additional satellite capacity to our ever-growing pay-TV digital platform,” Tom Mockridge, Sky Italia CEO, said in a statement. “This agreement marks an important development in the growth of our pay-TV as it brings us new resources to add hundreds more channels and interactive services for Italian families.”