Tuesday, September 30, 2008

DISH TUMBLES AFTER AT&T PICKS DIRECTV

New York
The Economic Times

Shares in DISH Network Corp fell more than 14 percent on Monday after phone company AT&T Inc said it would end a marketing agreement with the satellite company next year in favor of a pact with DISH's rival DIRECTV Group.

AT&T said on Friday that after its five-year contract with DISH ends on Jan 31, DirecTV would take over a multiyear partnership to jointly sell video services alongside AT&T's fixed line phone, wireless phone and high speed Internet.

DirecTV will be the video partner in regions that AT&T's new advanced video service, U-verse, does not reach. Analysts said the long-expected decision by AT&T leaves DISH in a difficult position versus DirecTV and other cable competitors.

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