AT&T signs three-year contract extension with DirecTV

AT&T (NYSE: T) has extended its relationship with DirecTV (Nasdaq: DTV) so it can use satellite service as a gap filler in areas where it currently does not offer its U-verse IPTV service.

Under the terms of the new extended contract that will run through March 2015, AT&T will continue to offer a co-branded version of DirecTV's satellite TV service across 22 states where it offers consumer broadband and voice services.

Customers will be able to purchase either dual, triple or quadruple-play bundles, which include DirecTV service and AT&T broadband, home phone and wireless voice services, in addition to bundled discounts when DirecTV service is combined with qualifying AT&T services.

Bundled packages continue to resonate for AT&T's customer base. During the third quarter, the telco reported that about three-fourths of AT&T U‑verse TV subscribers subscribed to a triple- or quad-play option.

In addition, DirecTV will continue to resell AT&T's broadband services, including U-verse broadband, to its existing customers directly and through its sales distribution channels.

Video continues to be a saving grace in AT&T's consumer wireline portfolio. As of the end of Q3 2011, the telco had 5.4 million total video subscribers, a figure that combines both its U-verse IPTV and bundled satellite customers.

For more:
- see the release

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