AT&T takes U-verse service to Ottawa, Kan., to challenge cable incumbent Allegiance

AT&T (NYSE: T) is taking on local cable video incumbent Allegiance Communications by launching its U-verse video, voice and data service suite in Ottawa, Kan.

The Sunflower State has been another growth market for U-verse service. Since entering the market in 2007, AT&T has expanded the availability of the service to over 540,000 living units in and around the Kansas City, Topeka and Wichita serving areas.

The service provider has also upped its U-verse ante in nearby Kansas City, Kan., where it not only has to battle existing cable operator Time Warner Cable (NYSE: TWC), but soon Google (Nasdaq: GOOG), which has laid the foundation to provide video services over its much talked about Fiber to the Home (FTTH) network in the city.     

As reported in FierceCable, Allegiance--which operates a number of small cable systems in Oklahoma, Kansas, Texas and Arkansas that it acquired from Cox in 2003--is becoming a formidable competitor that AT&T is obviously anxious to challenge with its IPTV service.

"Such strong growth shows that traditional cable was the only game in town for too long," Nancy Garvey, vice president and general manager for AT&T's Greater Midwest Region said in a release announcing the rollout of the service in the Ottawa market. "We know Ottawa customers want a better choice to break free from cable, and AT&T U-verse is the answer.

U-verse continues to be a saving grace in AT&T's wireline portfolio. In the first quarter of 2012, AT&T added more than 200,000 U-verse TV subscribers nationwide.

For more:
- see the release
- here's FierceCable's take

Special Report: Wireline in the first quarter of 2012

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AT&T wireline rises 2.4% with strong gains in next-gen consumer, business services
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