AT&T Decouples from Dish NetworkTelco’s agreement with satellite-TV provider to end Dec. 31; free to negotiate with both Dish, DirecTV. 7/02/2008 10:45:00 AM Eastern
Two weeks ago, AT&T exercised its right requiring Dish to buy back $500 million in Dish convertible notes that mature in 2010 in another step to unwind ties.
The Tuesday notification to drop Dish opens the door for AT&T to negotiate with both Dish and DirecTV for one to be its supplier of satellite-TV channels to its telco customers starting in 2009. AT&T could pact again with Dish but on different terms than a renewal.
AT&T’s backpedaling is more bad news for Dish, as its performance has disappointed Wall Street. AT&T is rolling out its own TV-channel service, U-verse TV, with just 379,000 subscribers so far nationally, but that Internet-protocol-TV service not available in all of its territories.