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AT&T Aims to End DISH Relationship at Year-End
More news from the DISH/AT&T camp came out late Tuesday.
In a Securities and Exchange Commission filing, DISH Network said on Monday it received notice from AT&T that the telco planned to terminate the sales and marketing agreement between the companies. The deal is set to expire Dec. 31, the company said.
The news came after AT&T last month exercised a put option that required DISH to buy back a $500 million stake that was being held by the telco. AT&T originally acquired the convertible stake in July 2003, when DISH and AT&T entered into a resale agreement within legacy SBC markets.
Certainly, the AT&T move opens up the possibility that it could partner with DIRECTV after the end of the year.
That's not the only angle.
Craig Moffett of Bernstein Research said AT&T suggested that the termination is "procedural" in nature, and that a six-month notice of termination was required under the contract in order to reopen renegotiations between the two sides.
Still, AT&T continues to grow its U-verse TV service, and that IPTV platform may make the small dish obsolete for the telco giant.
The big question, however, may be what happens to Homezone, the hybrid wired broadband/satellite product from the companies.
More news from the DISH/AT&T camp came out late Tuesday.
In a Securities and Exchange Commission filing, DISH Network said on Monday it received notice from AT&T that the telco planned to terminate the sales and marketing agreement between the companies. The deal is set to expire Dec. 31, the company said.
The news came after AT&T last month exercised a put option that required DISH to buy back a $500 million stake that was being held by the telco. AT&T originally acquired the convertible stake in July 2003, when DISH and AT&T entered into a resale agreement within legacy SBC markets.
Certainly, the AT&T move opens up the possibility that it could partner with DIRECTV after the end of the year.
That's not the only angle.
Craig Moffett of Bernstein Research said AT&T suggested that the termination is "procedural" in nature, and that a six-month notice of termination was required under the contract in order to reopen renegotiations between the two sides.
Still, AT&T continues to grow its U-verse TV service, and that IPTV platform may make the small dish obsolete for the telco giant.
The big question, however, may be what happens to Homezone, the hybrid wired broadband/satellite product from the companies.