Saltaire-based Pace Micro Technology has signed a major deal with a Canadian firm.

Pace has signed the deal, worth an undisclosed amount, with communications company SaskTel.

SaskTel has more than 450,000 business and residential customers in Saskatchewan, Canada.

Its customers will now be able to access the internet, pay-per-view programmes and other services via their television sets through a Pace internet protocol TV (IPTV) box.

The Canadian firm has signed a deal with the set-top box manufacturer to buy its DSL4000 boxes for its digital interactive television service.

Andrew Clifforth, managing director of Pace's IPTV division, said: "The market for IP-based services is real and tangible for industry leading telecommunication companies, such as SaskTel, who are capitalising on their existing networks by offering additional services to customers that reach far beyond high-speed access.

"With the DSL4000, SaskTel can generate new revenue streams and satisfy its growing customer demand for powerful, enhanced interactive TV solutions."

The DSL4000 boxes are fifth-generation IP television home gateways which have been delivered to more than 120 customers and partners worldwide.

The boxes allow users to get high-quality video and interactive TV services.

The deal will mean SaskTel customers will be able to get high-speed internet access, browse the web, watch TV and get pay-per -view programmes.

It also allows customers to access video-on demand movies and an interactive on-screen TV guide for program listings. The box does this with just one connection for every TV a household uses.

Bob Turner, director of technology for SaskTel, said: "The decision to select Pace's IPTV home gateway was based on Pace's excellent reputation for delivering leading edge digital set-top box technology into emerging markets, such as this one. The DSL4000 is the most established platform for delivery of IP services. Pace has the experience we require to deliver valuable IP services today that can support us as our services and subscriber base grow in the future."

Pace analogue and digital technology has been installed in over 13 million homes worldwide since it was founded in 1982.

Recent research revealed digital interactive television services are set to generate $28 billion in service revenue for carriers over the next five years.