LONDON (Reuters) - BT (>> BT Group plc) has agreed to make its new sports channels available to customers of cable operator Virgin Media in a three-year wholesale deal that will boost both groups in the battle to provide entertainment in the home.

The two firms said under the agreement, customers with Virgin's most expensive package would get the three sports channels for free, while those on cheaper packages could pay extra to receive them.

The deal will give BT more viewers to its new channels, which will enable it to charge more to its advertisers, while Virgin will be able to provide sports from BT and rival provider BSkyB (>> British Sky Broadcasting Group plc) through one subscription.

BT said earlier this week it had signed up over a million customers to its new sports offering, which it is giving to broadband customers for free as part of a drive to protect its core business.

(Reporting by Kate Holton; editing by Paul Sandle)