AT&T, DirecTV Re-Up Co-Marketing Pact - Multichannel

AT&T, DirecTV Re-Up Co-Marketing Pact

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AT&T and DirecTV said they have added three years onto their existing arrangement to bundle TV with residential broadband and voice services.

The two companies will continue selling a co-branded version of DirecTV satellite TV with AT&T Internet and voice services in areas where AT&T does not provide U-Verse TV. That covers 22 states, they said. DirecTV officials said during an earnings call Thursday that the new agreement's terms do not differ materially from the existing pact.

The agreement, now running through March 2015, covers DirecTV service and AT&T broadband, home phone and wireless voice services, and bundled discounts when AT&T and DirecTV services are combined with qualifying AT&T services. In a separate agreement, DirecTV sells AT&T broadband services, including AT&T U-verse High Speed Internet, through its sales distribution channels and to existing DirecTV customers.

The companies first struck their partnership in September 2008. It took effect after an AT&T re-sale agreement with Dish Network expired in January 2009.

For the past several years, AT&T has been rumored to be interested in buying either DirecTV or Dish Network. Extending this deal might further help put those rumors to rest.

In a release, DirecTV CMO Paul Guyardo said: "Over the past three years DirecTV and AT&T worked together to deliver a compelling bundled service at a great value. With this new agreement, we have a lot in the works to expand our partnership."

Jeff Weber, VP of video services, AT&T Mobility and Consumer Markets, said in the release: "We want all of our customers to have the option to receive a complete, integrated bundle of services from us, including TV. AT&T/DirecTV service allows us to offer customers the best entertainment and communication services in areas where U-verse is not available, including compelling features that enhance their entertainment experience."

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