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More Fireworks Between AT&T and Dish Network
July 2, 2008
It was just a few weeks ago I saw the writing on the wall with the relationship between Dish Network and AT&T, but I didn’t expect things to get blown out of wack so quickly between the two.
I think the daydreams folks were having about AT&T buying out Dish Network are now just that daydreams.
It was just last week that Dish announced that they had to pay back AT&T $500 million as AT&T demanded early payment on its bonds with this
It was announced today that AT&T is terminating their agreement with Dish Network and will no longer be selling or marketing Dish Network to their customers.
One has to think about what is the reasoning by AT&T to breaking the ties to Dish Network. Is it so they can focus on their UVERSE IPTV based television service? Is it because they might have their eye on DIRECTV? Or is it that they can’t stand working with Dish Network CEO Charlie Ergen?
My money says it’s probably all three.
AT&T’s UVERSE is finally starting to grow some legs and stand on it’s own. Most of the bugs that UVERSE had have been fixed and the service has turned into a viable service that can compete with both cable television and satellite services.
AT&T might have it’s eye on DIRECTV, after dealing with Dish Network the folks might have seen just how polished DIRECTV is. As much as I love my Dish Network equipment, which is worlds ahead of DIRECTV’s, I do consider DIRECTV to be the gold standard when it comes to multichannel providers. DIRECTV is the company that other multichannel providers aim to be. It makes sense for AT&T to look at the top dog instead of trying to be the second banana. I can see some big things happening if AT&T and Liberty Media joined forces, and what a powerhouse that company would be.
And finally AT&T might just be sick of dealing with Charlie Ergen and the folks at Dish Network. I can’t think of one partnership that Dish has had over the years, which hasn’t ended up in some kind of lawsuit. Dish is one corporation that doesn’t act like one. I am amazed at some of the things I have seen over the years from Dish. Charlie likes to be in control, yet at other times it seems like no one is steering the big Dish Network ship. The Dish Network / AT&T deal had its issues. It was almost like the agreement hurt Dish Network. I know a number of Dish Network retailers that were almost put out of business by AT&T as AT&T was offering customers the world to subscribe to Dish Network, promotions which were not available to the retailers. AT&T had the upper hand as when people moved, as when they called to order local phone service AT&T would hard sell folks on getting Dish Network as well. Customers of AT&T / Dish Network also reported lots of issues because they were AT&T customers, they couldn’t easily upgrade programming or equipment easily like regular Dish Network customers could. There seemed to be some kind of disconnect between both companies that left to many frustrated customers who were now upset at both companies.
I am sure over the next few months we will be hearing more about this split between AT&T and Dish Network. I am just hoping that any further news does not involve Dish Network in another messy lawsuit. This is something I will keep my eyes on.
Greetings from Belize!
This edition of The Satellite Dish came to you from aboard my cruise ship, which has just departed the island of Belize. We had a great day snorkeling and saw some amazing fish underwater!
To everyone in America, I wish you a very happy and safe 4th of July!
Posted by Scott Greczkowski on July 2, 2008 | Comments (6)
