An analyst says Telecom will need to come up with a package which allows internet users uncapped access to online television, as demand for the service grows.
Telecom and Sky Television have struck a three-year deal which will allow the telco to bundle Sky services with its homeline, mobile and broadband products.
Sky already has similar resale agreements with Slingshot, TelstraClear and Vodafone.
Forsyth Barr head of research Rob Mercer says the contract is well overdue as Telecom needed to respond to Vodafone's offerings.
Mr Mercer says a key question will be whether Telecom allows households access to Sky's online television service, iSky, on an uncapped basis, as Vodafone and other internet providers do.
He says video streaming is a big factor in using up broadband allowances and households need more generous terms offered.
Telecom Retail chief executive Alan Gourdie says he hopes to announce packages and pricing before Christmas or early next year
No decision has yet been made about whether iSky will be unmetered, but Mr Gourdie says that he would be looking at having the service unmetered "if at all possible."
